I was preparing a pitch deck and was wondering what to write under ‘Market Validation’ slide. Could you please help me what to write in that?
You need to have a good understanding of the industry you are selling / producing towards.
Market Validation is a part of the Marketing Research being done for your startup idea.
Your pitch deck will be of little use to investors if you have not done any kind of market validation of your idea.
Even if you dont have a complete MVP to demonstrate your idea, have you atleast taken your idea in front of ten, twenty people who would be willing to buy your product.
Have you checked with the target audience and consumers if they would buy / use your product as opposed to the already existing products ‘in the market’.
Many first time entrepreneurs end up creating products for which there really is no market, and the reason they are unable to identify a market is because there is no tangible product they are offering in the first place.
Thanks for this wonderful info @Ron . Yes I am running the business and would like to know what exactly should i write in the market validation slide?
You mean, should I write the number of customers we are presently targeting or, should I write the numbers of customers which we can reach in future?
I think the first thing is to run a couple of online surveys to figure out what potential customers are looking out for in the market you are targetting, and what are their pain points with existing solutions.
Lets assume you are pitching for a SAAS software since many entrepreneurs start of with some kind of software as a service route, instead of a product offering which is way more difficult as it requires an experienced head.
Have you checked what the other SAAS offerings are, how they make money and margin, and what customers are additionally looking for ?
Once you have an idea what the current products are not able to deliver, you’r eoff to a start in your Market Research, and can capture these metrics in your Market Validation sheet.
In a nutshell, what you as an entrepreneur require is a high degree of understanding of the market forces at play in shaping the form and function of your service / product offering.
Can you convince potential investors you are intelligent enough to understand the forces at play in the market, and if not profit, can you assuage their perceptions whether you will generate revenue in the first / second year , considering the competition ? If yes, then id say your understanding of the market, and hence your market validation skills are really commendable.
If you are hard pressed for time, i would suggest not putting gibberish in your Market Validation slide, and keep it at a bare minimum.
Put a screenshot of the survey questions , and that way at least you can convince your audience you know what you are talking about, but due to shortage of time, your market validation is not completed.
Better than number of Customers is if you have an existing customer. If your idea is still on the drawing stage, then its really difficult to convince people you will be able to pull it of, unless you have a well balanced team at your side.
Here adding to @Ron views and trying to make it simple.
Write the things which will make your idea market fit. Explain the need of your product / service to market then put some facts and figure and proofs. In simple manner market validation slide should convince the spectator that your product / service has a need / demand in the market. Please search on google, you will find many sample slides. Hope this suits, comment for more details.
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