Before you build out a business model, take a moment to make sure your view of the market is grounded—and that your solution actually solves the problem you’ve identified. Testing your market analysis helps you catch blind spots and adjust your solution to better match what the market really needs.
This section is for you if …
- you’re getting ready to found an impact startup—or already building one with your team.
- you know exactly who your target group is.
- you can clearly explain the problem, your solution, and the impact you want to make.
- you’ve got the resources to build a prototype.
- you’ve already carried out a market analysis.
Not quite there yet?
Check out the section that fits your current stage
In this section, you’ll learn how to …
- test your assumptions about the market and your competitive edge.
- get direct feedback from industry experts and potential users.
This one walks you through building and refining your business model, including how to handle the financial side of your solution
We focus on how to design your solution for real, measurable impact here .
How to validate your 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.