Before you develop a business model for your impact startup, you should make sure that your market assessments are realistic and that your solution actually meets the need you have identified. Testing your market analysis will help you identify blind spots and better align your solution with the market.
You’ve come to the right place if …
- you want to found an impact startup or are already in the middle of it with your team.
- you know your target group exactly.
- you can clearly name the problem, solution and impact.
- you have all the resources to develop a prototype.
- you have already carried out a market analysis.
Not quite ready yet?
Then select the appropriate chapter here
This chapter helps to …
- review your assumptions about the market and your competitive advantages.
- obtain direct feedback from market experts and potential customers.
This is about the development and implementation of your business model and the financial aspects of your solution.
We deal with the impact-oriented area here.
Validate market analysis in 5 steps
The following steps will help you to validate your analysis through data comparison, expert feedback and primary research, identify deviations and adapt your strategy accordingly.
1: Compares data from different sources
To validate your analysis, you should compare results from different sources and methods. Combine quantitative and qualitative data to get a more comprehensive picture. Look for similarities and deviations — these can provide important clues as to where there is still room for improvement.
2: Get experts involved
Have your market analysis carried out by industry experts or experienced market participants. Feedback from these experts helps you to identify blind spots and assess your assumptions more realistically.
3: Conducts primary research
Primary research is another step to test your assumptions. This is about collecting new data directly rather than relying on existing sources. Conduct your own surveys or interviews with potential customers to ensure that the data you are relying on holds up in practice.
4: Performs comparisons with industry benchmarks
Compare your results with standards and statistics from your industry. If there are deviations, analyze them carefully — are they an indication of a gap in the market or have you perhaps made the wrong assumptions?
5: Get feedback from colleagues through peer reviews
Ask your colleagues for peer reviews. Discuss the methodology of your analysis and the conclusions drawn from it. This will ensure that your assessments are sound.
Next chapter: Building a business model
You have reviewed your assumptions about the market and your competitive advantages.
In the next chapter it’s time to validate the findings of your prototype and develop a business model. If you have not yet defined your One Metric That Matters (OMTM) and methods for measuring impact, we recommend that you do so first in the chapter “Prototyping for impact start-ups: Developing your first prototype and finding key metrics” to do so.