Testing business ideas: how to validate an idea before you spend

The goal of testing is to find evidence that strangers will pay before you invest serious time or money. Compliments and "I'd use that" don't count. Payments, deposits and signed commitments do.

Step 1: Write the hypothesis (day 1)

"[Customer] has [problem], currently solves it with [workaround], and would pay [price] for [solution]." If you can't fill in the brackets, you're not ready to test.

Step 2: Problem interviews (days 2–7)

Talk to 10–15 people in the target group. Ask about the last time they had the problem, what they did and what it cost them. Don't pitch, and note the exact words they use.

Step 3: One-page offer (days 8–10)

One page: who it's for, the outcome, what's included, the price, and a reserve or pre-order button or booking link. A free website builder is enough.

Step 4: Ask for money (days 11–25)

Send the page to everyone you interviewed and wherever your customers gather. For services, ask for a paid pilot. For products, take pre-orders or deposits and refund them if you don't build it.

Step 5: Decide with pre-set criteria (day 26+)

Set the bar before you start, for example "5 paid pilots from 50 conversations". If you hit it, build. If you miss by a lot, change the customer, problem or price and test again.

Common mistakes

• Testing with friends (they're polite, not buyers).
• Building the product first "to show people".
• Moving the bar after seeing results.

To size the market with public data, see the SBA's market research guide.