What is the Validation
Phase?
Validation is
the first real test that your
product or service will face.
During this phase of company
development, your organization
will need to prove that
customers value your product or
service. This will require you
to generate revenues through the
sale of your product or service
to these customers.
By validating your business
concept and proving the value of
your product or service to your
customers, you will be able to
attract the funding, employees,
and strategic partners required
to make a full scale launch of
your business concept.
Why do you need
Validation services?
BDC Validation Services can
improve your probability of
success during the Validation
phase. Our experience allows us
to help you answer the following
critical questions:
- Who are your customers?
- Why should they buy your
product or service?
- What value does your
company provide them?
- How should you sell to
them?
- What exactly are they
buying?
- When do you need
Validation services?
- Your company can benefit
from validation services if:
- You need capital.
- You need to close sales
with some key initial
customers.
- You have an idea for a
new product or product line
extension.
- You would like to open a
new store.
- You are considering the
acquisition of a
manufacturing facility.
- You are introducing a
new product or service
How can BDC Validation
Services help you?
We have worked with many
organizations to validate their
business concepts. During this
phase of development, our
professionals can help you:
- Clearly define the value
you create for your
prospective customers.
- Prove the soundness of
your business concept to
lenders and/or investors.
- Determine the
appropriate price for your
product or service
- Communicate effectively
with prospective investors,
customers, and strategic
partners
- Identify prospects and
close sales with strategic
customers.
- Develop and formalize
strategic partnerships.
What are the Keys to
Success in the Validation Phase?
There are four important keys
to success during the validation
phase:
Gain Market Acceptance
The most critical step for
your organization during this
phase is to demonstrate market
acceptance of your product or
service. You can demonstrate
market acceptance with signed
sales contracts, revenues, and
customer testimonials. When your
organization demonstrates that
there are customers who not only
need your product or service but
also will pay for it, you will
pass the first major milestone
in your company’s development.
Quantify Product Benefits
Your organization must also
develop methods to quantify the
benefits that your product or
service brings to customers.
This can be achieved through
customer testing and product
benchmarking.
Develop Launch-Ready
Products or Services
During this phase, you will
also be required to move beyond
test-models of your product or
service. You will need to
develop customer-ready products
and will need to have the
capability to manufacture and
distribute them to your
customers.
Attract Knowledgeable
Investors and Advisors
During this phase you should
also seek to attract high
quality, experienced, investors
and advisors. These advisors
will bring experience,
expertise, and contacts to help
your successfully validate your
business and navigate the growth
phase.
