Tag Archives: market validation

Do You Have A Problem Worth Solving?

In order to pursue any product idea — a new product, or a new feature for an existing product — you must make sure it’s a problem worth solving.

If it doesn’t solve a tangible, real problem that lots of people are facing, and are willing to pay to have solved, it’s not worth spending your time on it. Move on to your next great idea.

So how do you go about figuring out if your product actually solves a problem that’s worth solving?

And what makes a problem worth solving?

In their book, Tuned In, authors Craig Stull, Phil Myers and David Meerman Scott talk about this in detail.

In order to know whether your product idea solves a problem that’s worth solving, it must it must satisfy the following criteria:

  1. Is the problem urgent?
  2. Is the problem pervasive?
  3. Are customers willing to pay to have the problem solved?

These three questions need to be answered before investing a ton of money or resources into developing and launching your product.

If the answer to any of these questions is “no”, then you need to pivot.

Let’s talk about each of these in turn.

Is the problem urgent?

Any product idea you’re pursuing must solve a problem people really care about. It needs to be a real pain point, a critical need, or a super important job for them.

The pain may manifest as costing them money, time, resources, effort, credibility, or some other significant inconvenience or frustration. Even perhaps emotional or physical pain.

The need or job could be social (look good, gain status, etc.), emotional (feel better, feel more secure, etc.), or functional (an important job that must get done).

If it’s truly a pain point or priority need/job, people will have expended time or effort to have tried to solve the problem. They may even have “hacked” together their own solution, or spent money on trying to solve it. This is what’s meant by the problem being urgent.

But why does this matter? Why is it so important to validate the urgency of the problem?

Because nothing is more frustrating than working yourself silly trying to solve a problem that either doesn’t exist yet or that people describe as “not a big deal”.

Here’s an example:

I hate taking out the trash.

I have to do it 2x a week, put it out on my driveway in the evening so the garbage truck can pick it up first thing the next morning.

I especially hate doing it in the winters when it gets really cold.

Is it a job I need done?

Most definitely!

Is it a pain?

Yes!

But have I done anything to solve my problem?

No.

I keep complaining about it. But I’ve done nothing to change the situation.

It’s just not a priority for me — it’s just not urgent enough.

As product people, we’re naturally wired to look for solutions. So we quickly and easily fall in love with our solutions.

(Thanks, Ash Maurya, for representing this first on your Lean Canvas.)

But we need to care about PROBLEMS.

So if you’ve got a product idea, you need to first care about your customers’ problems.

This is true whether you’re thinking about your next new feature or a wholly new product.

Remember:

Customers don’t care about your solution. They care about their problems.

Just make sure the problem is an urgent one.

Is the problem pervasive?

The urgent problem needs to be one felt by a large enough number of people to make it worthwhile for you to develop and sell your product.

Why?

Say one product will cost $1,000 to make, and only two people in the whole world will pay you $10,000 each for it, and another product costs $10,000 to make, but 10,000 people will pay you $10 each for that one.

Which product is better worth your time?

Quite simply, if enough people aren’t experiencing the problem, then the market potential for your product idea isn’t big enough, and it’s not worth pursuing your product idea. Period.

Even for a new feature, you need to size the market opportunity for it.

Your company has a choice of whether to focus its resources on developing feature A or feature B. In fact, it has a choice of whether to have its resources focused on your new feature idea or something else entirely.

So no matter whether you’re pursuing a new feature or a new product, make sure it’s solving a problem that’s pervasive.

Are they willing to pay to have the problem solved?

This is critical — you may find a lot of people are complaining of the problem you’ve identified… but are they willing to pay to have it solved?

Most people have all kinds of problems that they’re just not willing to pay money to solve.

For example, I may whine about taking out the trash, especially in the bitter cold of winter.

And it becomes an urgent enough problem that I finally get my teenage son to do it. (Hey, it builds character.)

And lots of other people may be doing the same thing as me.

But neither they nor I are willing to pay to have someone come to our house twice a week to put the garbage out by the curbside.

Even for an existing product, a new feature must be able to create some tangible business value. Will customers pay for the new feature? Will the new feature justify a higher price for your product? Will it increase customer lifetime value, or accelerate new customer acquisition?

As long as you’re in a profit-making enterprise, it’s worth solving an urgent and pervasive problem only if the people with the problem are willing to pay for your solution.

Are you done? Not quite…

In order to decide whether to pursue your product idea or not, you need to consider a couple of additional things.

First, it’s possible that your company may have (likely has) a point of view (spoken or unspoken) on what it considers worthwhile revenue opportunities.

For example, at a $7 million company, a $50k opportunity could get the CEO’s attention…

…But at a $500 million company, anything less than $250k may not get much interest.

If so, it’s important to consider whether your product idea meets this threshold to be worthy of consideration.

Second, your product may have specific strategic business goals, such as driving new customer revenue, or generating expansion revenue from existing customers, etc.

If so, you’ll need to evaluate whether your product idea contributes in a meaningful way to achieving those goals.

In other words, is there enough monetizable value in your product idea?

If your product is currently generating $50 million in revenue with a goal to grow 15% in the next year, and you estimate your product idea could drive $500k in additional revenue, that means it will contribute less than 7% toward that goal.

Whether that’s good enough will depend on how it compares to other ideas that contribute toward achieving the goal, or whether it can be combined with other ideas in some rational way as part of a theme — then it will come down to how the theme in its entirety contributes toward the goal.

So to recap:

To pursue any product idea, make sure it’s a problem worth solving.

This means the problem must be urgent and pervasive, and your target customers must be willing to pay to have the problem solved.

Furthermore, your product idea must have enough monetizable value to contribute meaningfully toward your company’s strategic goals.

Fortunately, it’s not that difficult to learn how to do this. 🙂

4 Key Tips For Attracting A Non-Technical Co-Founder

Recently Michael Hughes of CoFoundersLab wrote a nice piece on how a non-technical founder can attract a technical co-founder. I’ve read many similarly written blogs and presentations. Most all say the same type of thing: build a prototype, learn to write code, talk to customers. So I thought it would be interesting to look at the opposite situation: how can a technical founder attract a non-technical co-founder?

It strikes me that you could take many of Michael’s points and apply them equally to attracting a non-technical co-founder. Especially the ones about focusing on attracting a co-founder as opposed to finding one, getting into the right mind set, and a co-founder wanting to work with you instead of for you.

In fact, you could take many of his sentences and simply turn them back around to a technical founder. For example: “Repeat this to yourself until you believe it in your bones”: your idea isn’t the best idea, and a non-technical co-founder doesn’t want to work for you on simply selling your idea.

I’ve come across too many technical founders who see the problem as simply a question of sales. In their minds, they of course have the most brilliant product idea, and they may even have spent weeks or months building a product with slick features. Now, all they need is a “sales guy”, “marketing guy” or “business guy”, and of course the money will come rolling in.

If the product doesn’t sell, it’s easy for the technical founder to simply blame the sales guy or marketing guy. After all, clearly the product is great, so if it’s not selling it’s obviously sales or marketing’s fault!

Michael rightly says: “You may very well have the next game changing idea, but that’s missing the point.” The missing point in this case for the technical founder is market validation.

With all of the education out there about customer development, talking to customers, “get out of the building”, etc., I still meet many technical founders who are so completely convinced of their product idea, and they’ve spent months and even lots of money to build a product, yet have no proof whatsoever that a single customer would actually be interested in, let alone buy, their product. That’s because they’ve spent zero time in the marketplace actually trying to identify who their target customer may be and whether these customers actually care. Often times their market research has been limited to a few conversations with trusted friends and family, or they rely on broad industry research or market trends. But unless friends and family are your target customers, their opinions, while interesting and ego-flattering, are utterly irrelevant.

Technical founders are sometimes surprised when non-technical co-founders start providing input into the product features. Reality check: if they’re out there talking to prospective customers, they’re absolutely going to come back with input on features and capabilities that they feel need to be developed to satisfy your customers.

So how do you attract a potential co-founder? You can start with these four tips:

1. Make sure you’ve identified a real problem.

An idea is worthless unless you can clearly articulate who is your potential customer and what problem it solves for them. And you need to be able to state the problem from the customer’s point of view.

If a technical co-founder looks to a prototype or code as a form of commitment from a non-technical founder, a non-technical co-founder is looking for work done to obtain actual market validation as a form of commitment from a technical founder. Currency here is in the form of actual customer interviews.

2. Learn to do customer development.

If you want to gain respect from a non-technical co-founder, learn to how to find and interview customers, identify early adopters, understand your market, and get buyers. This will show that you haven’t formed your idea or developed your product simply in your head, but you’ve done so in response to the demands of your market. Nothing is more impressive than being able to clearly articulate who is your early adopter customer, and better yet, show that you have a paying early adopter customer.

3. Start talking about your product in terms of benefits, not features.

When describing their product ideas, many technical founders describe a laundry list of features. While some of your features may actually be pretty cool, the reality is no one actually cares. What customers really care about is how your product solves their problems, and that means being able to communicate in benefits, not features.

If you’ve done #1 and #2, #3 becomes easier to do. If you’re able to speak in terms of benefits, you will demonstrate to a non-technical co-founder a grounded, realistic understanding of your market.

4. Stop saying “There is nothing like this out there” or (worse) “There is no competition.”

Sorry to burst your bubble, but odds are very high your idea is not that unique. Repeat this to yourself: There is always competition for my product.

Keep in mind the competition may not always be another company or product. Your competition may very well be how customers are solving their problem today. A great example is Quicken. One of the biggest competitors Quicken was competing with when it first launched was the paper checkbook and pen. Your biggest competition is often current customer behavior.

Just like Michael says in his article, remember to treat your non-technical partner like a true partner, not just the person who will “get sales”. The key to attracting world talent here is to show commitment to obtaining real, tangible progress in your target market. Best of luck!