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Issue #5 • October 31, 2024

How to Validate Your SaaS Idea: A Simple 3-Step Framework

95% of startups fail because they build something nobody wants. Here's the 3-step framework I use to validate SaaS ideas before writing a single line of code.

Step 1: The Problem Interview

Talk to 100 potential customers. Don't pitch your solution - just understand their problems. Ask: What's the biggest challenge in [area]? How do you currently solve this? What have you tried before? 20+ people mentioning the same problem? You might be onto something.

Step 2: The Landing Page Test

Build a simple landing page describing your solution. Include pricing. Drive traffic through targeted ads (budget: $500). Goal: 5%+ conversion rate to email signup. If you can't get people to give you their email, they definitely won't give you their money.

Step 3: The Pre-Sale Validation

Email your subscribers offering early access for 50% off. Don't build anything yet - just gauge purchase intent. 10%+ purchase rate means you have a viable business. Less than 2%? Back to the drawing board.

Key Takeaway

Validation isn't about proving you're right. It's about proving you're wrong as quickly and cheaply as possible.

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