Based on your research, draft a clear hypothesis statement.
For example, "We believe that [target customers] will be willing to pay [price] for [product/service] delivered through a [revenue model], because [rationale]."
Ensure your hypothesis includes the target customer, the price point (or pricing structure), the revenue model, and the rationale behind this choice.
Once you have your first hypothesis written, it’s time to test and validate it, which can easily be done through a pilot program, prototype, or a Minimum Viable Product (MVP).
Let's use the example of a Sex and Intimacy Coach to illustrate these steps.
Define the MVP and Target Audience
An MVP is the simplest version of your product or service that still provides value to your customers.
For a Sex and Intimacy Coach, an MVP could be an online workshop titled "Enhancing Connection: Communication & Intimacy." This workshop would aim to provide fundamental strategies for couples or individuals looking to improve their communication and deepen intimacy.
Determine who would benefit most from your MVP. In this case, the Sex and Intimacy Coach might target couples in long-term relationships seeking to reignite their connection or individuals who feel they lack the skills to form intimate relationships.
Testing the market involves strategies to gauge interest and gather feedback on your MVP.
Create a Landing Page – Develop a simple landing page describing the workshop, its benefits, and how it addresses the customers' needs. Include a sign-up form for an email list or pre-registration to measure interest. Link-in-bio companies let you create a “website” in a no-code way and in minutes. They’re a great way to test MVPs. I love Beacons for its ease in creating a landing page (or full site), and it’s the easiest way to sell you products, services, or experiences.
Offer Free Content – Provide a free webinar or a series of informative blog posts related to the topics covered in the workshop. This serves two purposes: it offers immediate value to potential customers and acts as a teaser for the full workshop. Again, link-in-bio platforms let you easily test free and paid products or services, like a webinar.
Utilize Social Media – Promote your MVP on social media platforms where your target audience is likely to be active. Engage with your audience through posts, discussions, and direct messages to build interest and gather informal feedback.
Evaluate Demand Indicators – Look for demand indicators such as search volume, social media engagement, online discussions, pre-orders, or expressions of interest from potential customers. These signals can provide insights into the level of interest and demand for your offerings.
Assess the engagement and feedback to determine if your MVP has resonated with your target audience. High interest and positive feedback suggest a validated need for your service, whereas low engagement indicates a need for refinement.
Make refinements to your MVP if needed. For the Sex and Intimacy Coach, this might mean adjusting the content of their workshop, changing its format, or even addressing different aspects of sex and intimacy that the audience finds more relevant.