Onto a winner or get out whilst you can? Startup validation questions to ask your new boss.
Don’t always take the founders’ word for it, ignore vanity metrics, and dig deep!
Here are some startup validation questions to ask to see where the product is and what your role may be. Oh, and if you’re in for a rollercoaster or VERY bumpy ride.
I get it, there’s no crystal ball. You can’t predict what it’d be like to work at a startup. You can’t predict what it’d be like to work anywhere, really.
There’s always a heightened sense of caution when thinking about joining a startup because - let’s face it - startup environments are a bit, well, bonkers. Everything is a new opportunity to break the rules! Disrupt the rules! Rip up the rule book!
Whilst you can’t predict what the culture will become - as Rand Fishkin suggests because this is deeply routed into what the founders’ traits are - you CAN get an idea as to how your marketing job may play out.
Ways to see if the startup’s idea is validated and what work you’ve potentially go ahead of you.
Please note where I reference the term ‘product’ it is interchangeable with ‘service’.
Okay, let’s head in with a super easy one first…
What’s the pain point or challenge the startup is solving?
And is the challenge ‘painful enough’ that people are willing to pay?
Here’s what I am really asking: has the idea been validated and are the people who’ve paid so far - genuine potential customers or just your boss’ mates?
I was working for a startup back a few years ago, and someone approached the CEO and said they’d be happy to give us a case study.
“Yes!”, I thought as I plotted where to put it in my content plan.
“But...:”
There was a catch.
Turns out, we were allowed the case study but we would have to give away free access to our product.
Damn.
I completely get the value in the case study, especially when you’re marketing a startup and the need to get your message out. My issue, however, was that they didn’t value the product enough to pay for it.
Did that mean our idea wasn’t any good? Not at all.
Did that mean people wouldn’t pay for it? Not necessarily.
Did it mean this person was not our target audience? Yup!
Marketing’s role is to drive profitable action. Yes, of course there is value in case studies - but if someone isn’t really prepared to pay for your product, are they a good example to highlight?
Side note, I totally get the value of partnership marketing and in some way this could have worked. But if you’re at the idea validation stage, this isn’t the time to get these vanity case studies. You’re trying to work out if there’s a business in the first place.
Is the startup’s product a vitamin or a painkiller?
How audiences view a product will impact how you position it, how you market it, and how you charge for it.
Is your product a vitamin?
A vitamin is something that’s a nice-to-have.
Something that’s not ‘business critical’.
Look at vitamins; many people will take them to enhance something, to build on something. They’re an investment in the longer-term. Their benefits may not be immediately obvious, but you know that by taking them you’re doing something positive.
Look at it from a business perspective. If a customer was to pause or not renew their subscription with you because they deem you to be a ‘vitamin product’ - chances are their business would be able to continue.
Is your product a painkiller?
If it is, this means it’s considered a must-have.
Look at painkillers; you take them to help you fix an immediate pain point.
Let’s say you bought a bottle of whiskey and started to watch the US election. The next day, after a few hours’ sleep and a banging headache - you know you need to perform and work, so you reach for paracetamol to buy you a few hours’ productivity.
Let’s apply it to a business perspective again. A painkiller product is something the business cannot function without because it’ll affect sales / costs. That could be something like Xero or the software your customer success teams use. It could also be leadership training courses, depending on how it’s valued.
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What I am really telling you: it doesn’t matter which the product is, a lot of it is subjective.
BUT it will ultimately impact how you market the startup, how it is priced, and how it is positioned. How its demand may shift over the course of the calendar year or when external market conditions change. (Zoom subscription, anyone?)
Ask why your prospects are saying yes to (insert demo, trial, sample) and then doing nothing.
People HATE saying no. We’re programmed to not want to hurt people’s feelings. We shy away from conflict.
We’ve all done it.
I’ve been there. Sales people would call me up, asking to demo their software. They’re being pushed by their boss to hit their numbers. They won’t take ‘No’ for an answer. I get it.
In the end I would go, “yeah of course, send me your 2-pager and I will take a look”.
[Reader - I was never going to become a paying customer].
I didn’t want to put myself in the situation of what I saw as conflict. I was paying lip service, telling them I thought they’d want to hear.
What I am really telling you: Make sure the prospects in your CRM aren’t there just to serve as vanity metrics.
The sign up numbers may look good, but if the engagement just isn’t there is it because they’ve paid lip service to you? And don’t have the need? Or are there other factors in play?
Just because someone / your Mum tells you they think your product is a good idea, doesn’t mean they will go on to buy. Do your research. I’ve written about this previously, Stop Making Excuses and Talk to your Customers.
Got more startup validation questions? Check out these resources:
The Mom Test - questions to ask potential customers to get actual, actionable feedback
The Ultimate Step by Step Guide to Validating a Startup Idea
How to Validate your Startup Idea - Neil Cocker
