METHODS AND TOOLS FOR VALIDATING HYPOTHESES

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Once you have identified all your hypotheses, you can start looking for the most appropriate method to validate them.

There are several methods for validating hypotheses in a new venture, some of the most common of which include

1. Interviews with potential clients (+): Talking to potential customers is an effective way to validate hypotheses and obtain valuable feedback on the product or service you are offering.
2. Prototypes (+): prototyping or small-scale modelling can help entrepreneurs understand how their solution would work in real life and identify potential problems before launching the product or service.
3. Controlled experiments (see TIP): Controlled experiments, where different variables are tested and results are measured, can help entrepreneurs understand what works and what does not work in their solution. 
4. Data analysis: Data analysis can help entrepreneurs to better understand their target market and the needs of their potential customers.
5. Market research: Market research can provide valuable information about the target market, including market size, trends and customer needs.
6. A/B test or AB (+) test: A/B testing is a technique that allows comparing two versions of the same solution to see which is more effective in achieving the previously defined objectives.
7. Crowdfunding of pre-sales (+): Using crowdfunding platforms such as Kickstarter or Indiegogo can allow entrepreneurs to validate their product or service by seeing if there is enough interest and financial support to bring it to market.
8. Focus groups: The creation of focus groups with people representative of the target market can provide valuable feedback and suggestions for improving the solution.

These are just some of the methods that can be used to validate hypotheses in a new venture. It is important for entrepreneurs to choose the methods that best suit their specific needs and objectives.

Advice to an entrepreneur on how to choose the validation method that best suits him/her in each case

When it comes to validating hypotheses in a new company, it is important to choose the method that best suits the specific needs of each case. Here are some tips on how an entrepreneur can choose the right validation method:

1. Understand your hypothesis: Before choosing a validation method, it is important to have a good understanding of the hypothesis to be validated. In this way, you can determine what information is needed to validate it and which validation method can provide that information.
2. Define your objectives: it is important to have clear objectives when choosing a validation method. If you are seeking to validate a hypothesis about the acceptability of a new product, for example, the objective may be to determine whether customers would be willing to buy it and how much they would be willing to pay for it.
3. Identify your target audience: It is important to know your target audience in order to choose an appropriate validation method. For example, if your target audience is 18-24 year olds, a focus group or online survey may be more effective than an in-person interview.
4. It uses multiple methods: In many cases, it is advisable to use multiple validation methods to get a more complete picture of the situation. For example, an online survey can be complemented by face-to-face interviews to obtain more detailed information.
5. Test, measure and adjust: it is important to remember that hypothesis validation is a continuous process. Once one or more validation methods have been used, the results should be measured and the hypothesis adjusted accordingly.

In summary, to choose the right validation method it is important to understand the hypothesis, define the objectives, identify the target audience, use multiple methods and have a continuous approach to testing, measuring and adjusting.

Very practical tools for validating hypotheses

There are various tools that can help entrepreneurs to validate hypotheses in the field of entrepreneurship. Here are some of them:

1. Google Analytics: Google Analytics is a free tool that allows entrepreneurs to measure website traffic, conversion rate, user behaviour and other key performance indicators. By using Google Analytics, entrepreneurs can measure the effectiveness of their landing page and collect valuable data on user response to their business idea.
2. SurveyMonkey: SurveyMonkey is an online tool that allows entrepreneurs to create online surveys and questionnaires to gather information about the demand for a product or service. Entrepreneurs can use SurveyMonkey to measure user response to their value proposition and gain valuable insights into the preferences and needs of their target audience.
3. UserTesting: UserTesting is an online tool that allows entrepreneurs to get feedback on their website or application from real users. Entrepreneurs can use UserTesting to evaluate the usability of their website or application and gain valuable information about the needs and expectations of their target audience.
4. Optimizely: Optimizely is an online tool that allows entrepreneurs to conduct A/B tests and online experiments to measure the effectiveness of different versions of their website or application. Entrepreneurs can use Optimizely to measure user response to different elements of their landing page and gain valuable insights into what works best for their target audience.

These tools can help entrepreneurs measure user response to their business idea and gain valuable insights into the preferences and needs of their target audience. By using these tools to validate hypotheses, entrepreneurs can make informed decisions about the future of their business and ensure that their value proposition appeals to their target audience.

Examples of how famous companies have validated their hypotheses

Here are some examples of how some famous companies have validated their hypotheses:

1. Airbnb: To validate their hypothesis that people would be willing to rent their homes to strangers, the founders of Airbnb began hosting people in their own flat. Once they demonstrated that this was viable, they began recruiting hosts and offering them the opportunity to earn money by renting out their homes to tourists.
2. Dropbox: Before launching their cloud storage service, Dropbox's founders created an explainer video showing how their product would work. They shared it online and collected feedback from people who watched it. This allowed them to refine their idea before bringing it to market.
3. Zappos: Zappos' founders believed that people would be willing to buy shoes online without trying them on first. To validate this hypothesis, they started by selling other brands' shoes and then built their own inventory once they saw that people were willing to buy shoes online.
4. Groupon: Groupon's founders started by sending discount offers to a small group of people. If enough people bought the offer, then the offer became a reality. This model allowed them to validate their hypothesis that people would be willing to buy offers in groups.

These are just a few examples of how companies have validated their assumptions in the past. Each company is unique and the validation process may vary depending on the products or services offered.

How do you validate a hypothesis?

EXAMPLE OF HYPOTHESIS VALIDATION:

Imagine that it has occurred to you, through personal experience, that it is very difficult for your company to find service providers (from lawyers to designers or consultants) who understand your requirements, both in terms of speed, cost and type of services.

WE START VALIDATING

We include who we think the particular customers are, who we think will be early adopters and the problem they have. We do not include the solution for the time being, as we have not yet spoken to anyone. We are writing down the most risky hypotheses, we think that the most risky one is that companies are not able to easily find this type of supplier. To validate whether this is true or not, we will interview other companies (at least 10). To consider the hypothesis to be true, we need 6 to mention that it is a real problem. We went out into the real world, did the relevant interviews and found that indeed, 7 of the companies interviewed confirmed that it is a problem.

VALIDATED HYPOTHESIS. Now we can think about how we are going to solve the problem... and we decided that the best way is through a "marketplace" where supply and demand can be put in contact.

The next hypothesis to be validated is that companies are willing to pay (€10 per month).

• For example: for the service, and we will send an offer to a mailing list we have with companies, hoping that 60% will sign up.

Unfortunately, although they showed interest in solving the problem, they are not willing to pay for it (only 20% have signed up).

INVALID HYPOTHESIS We have that pivot (+) and we thought that even if the companies don't want to pay, maybe the suppliers do... so, we change the client and the problem, and we start experimenting. In this case, the first thing we want to test is whether the suppliers are willing to pay €50 a month to be registered.

We tried a different mailing list, and hoped that 50% would sign up to the platform. We have validated that our main customer is willing to pay! Although we are far from having validated the entire model, things are looking good.