Explore product validation practices

Validation confirms whether an idea is worth building. At this stage, teams test if the product solves a real problem, if people are willing to pay for it, and whether the market is large enough to support growth. Methods can include surveys, waitlists, pre-orders, or launching a minimum viable product.

A clear example comes from consumer packaged goods. A study found that nearly 25% of new products vanished from shelves within the first year, often because they were built before demand was validated. To avoid this, many startups use crowdfunding campaigns to gauge interest. Pebble, an early smartwatch, validated its concept through Kickstarter by raising over $10 million in pre-orders before production. This proved that customers wanted the product and were willing to pay for it, giving the company confidence to invest.^[1]

Validation reduces the risk of building “nice-to-have” products that nobody actually uses. It is not a one-time task but an ongoing process that protects resources and ensures alignment with user demand.