In our last blog we talked about what makes a good value proposition. Continuing with that theme, let’s explore some critical success factors that can increase your chances of achieving commercial success.
At the Evidology Group, we spend a lot of time and energy guiding our clients through a rigorous customer validation process – a process designed to set you on the right path early in the life cycle of your new product journey or to guide a course correction if needed. Being on “the right path” makes it easier to find lead customers, raise money to reach critical momentum, attract high-quality talent, and chart a shorter path to success. Moreover, it’s a much more fun journey for everyone involved!
But how do you know if you’re on the right path?
The Evidology Group customer validation tools and process are designed to help you collect sufficient evidence to support the following seven critical success factors:
- A significant, high priority, unmet need exists
- There’s a large and sufficiently homogeneous market to pursue
- Current options are unsuitable. Competitors cannot or will not meet this need.
- Customers are willing to pay an amount that supports the business model
- There is an effective direct/indirect path to reach them
- There are no systemic barriers that prevent buying
- Purchase process and decision-making can be navigated in a repeatable way
This evidence comes in many forms, but the best way to stress-test your vision, enthusiasm and assumptions is with cold hard evidence provided in large part by your prospective customers themselves. Done effectively, you will acquire the insights to set you on the right path.
A Critical Success Factor Test can help you measure if you’re on the right path and setting yourself up for success. Of course, the evidence listed in this test is intended for guidance only. If you have other sources of evidence, that’s great too!
Setting aside your assumptions and beliefs, how many of these questions can you answer clearly and concisely with supporting evidence? What is your score?
Often, it’s hard for Founders to dispassionately grade their vision and plan, so turn to an external advisor or the Evidology Group to give you a candid assessment of your evidence and what you need to do to strengthen your business strategy. Are you set up for success? Where are your most vulnerable points?
I’m confident that if you can compile hard evidence, you’ll be well on your way to building a wildly successful business. Contact the Evidology Group and we can help you do just that!
