A couple nights ago my friend and I decided to launch a company. We got the urge that many entrepreneurs will be familiar with, and took the leap.
What set this night apart from the countless other nights of creative ideas was simple: we acted. By the end of the night we had a live website. 24 hours later we had a functioning product. This move fast, and break things attitude is one of the most valuable assets any successful entrepreneur has. But even the fastest moving of founders should do a bit of planning before spending weeks or months building a company. One of the most important pieces of the planning process is Demand validation.
What is demand validation?First things first, before you ever build a website, product, or start building a brand, its essential to determine whether or not there is any demand for what you intend to build. My mentor Alberto likes to say, Make sure youre building the right it, before you build it.
How to test for demand before starting your companyOne of the best ways to test demand for a product is to see if people are searching for your product. My friend and I wanted to build an ETF for the cannabis industry (basically an easier way for people to invest in cannabis).
The first thing I did was use Googles Keyword Planner tool to look at a couple key metrics:
The first thing I did was open up Keyword Planner and entered a few search terms