spot_imgspot_img

Top 5 This Week

spot_img

Related Posts

How to Validate a Business Idea Before You Spend Money

Picture Chioma. She quits her job to open a stylish smoothie bar in her estate and spends ₦4 million on blenders, interior design and branding. Three months later, she closes. Her neighbours loved the idea, but few were willing to pay ₦3,500 for a smoothie every day. The painful part is that she could have discovered this for a tiny fraction of that money.

To validate a business idea, confirm that a specific group of customers has a real problem, that they are willing to pay for your solution, and that you can reach them profitably, all before you invest heavily. Validation turns an assumption into evidence and can save you from losing savings, time and confidence on an idea the market doesn’t want.

Key takeaways

  • Friends and family saying “nice idea” is not validation. Payment or pre-orders are.
  • Talk to potential customers about their problems and past behaviour, not your idea.
  • Test cheaply with a minimum viable product (MVP) before building the full thing.

Why validation matters

Research by CB Insights analysing startup post-mortems has repeatedly found that a lack of market need is one of the most common reasons startups fail. In Nigeria’s tough economy, testing before investing is even more important.

7 steps to validate your business idea

1. Define the problem and customer

Write one sentence: “[Customer] struggles with [problem] because [reason].” For example: “Working mothers in Lekki struggle to get affordable, healthy lunches for their children because they leave home before 7am.”

2. Talk to at least 20 potential customers

Rob Fitzpatrick’s The Mom Test recommends asking about people’s real lives and past behaviour rather than asking if they like your idea:

  • “How do you currently handle this?”
  • “When was the last time this was a problem? What did you do?”
  • “How much do you spend on it now?”

3. Study the competition

Competition often proves there is demand. Check who is already solving the problem (including informal businesses and Instagram vendors), what they charge, and what customers complain about in their reviews.

4. Build a minimum viable product (MVP)

Eric Ries’s The Lean Startup popularised the MVP: the simplest version of your offer that lets you learn from real customers. Examples include a WhatsApp catalogue, an Instagram page, a simple landing page, or a small first batch of products.

5. Ask for money

The strongest validation is payment. Offer pre-orders, a paid pilot or a deposit. If people won’t pay even a small amount, find out why.

6. Measure the numbers

Track how many people you reached, how many showed interest, how many paid, and what it cost you to acquire each customer. Do the unit economics work? See how to price your products and services.

7. Decide: persevere, pivot or stop

If the evidence is positive, scale gradually. If mixed, adjust your customer, problem or offer. If negative, stopping early is a win because you saved money for your next idea.

Try this this week

Have five conversations with people who fit your target customer. Ask how they currently solve the problem and how much they spend on it, without pitching your idea. Write down exactly what they say. Their answers are worth more than any number of “nice idea!” comments from friends.

Frequently asked questions

How much money do I need to validate an idea?

Often very little. Conversations, social media pages and small test batches can cost far less than a full launch.

What if someone steals my idea?

Execution matters far more than ideas. The benefits of talking to customers almost always outweigh the risk.

Related reading

Sources

  • Fitzpatrick, R. (2013). The Mom Test. CreateSpace.
  • Ries, E. (2011). The Lean Startup. Crown Business.
  • CB Insights. The top reasons startups fail.

Written and fact-checked by the Mindset.ng Editorial Team in line with our Editorial Policy. Last updated: 23 September 2026.

Mindset.ng Editorial Team
Mindset.ng Editorial Teamhttps://mindset.ng
The Mindset.ng Editorial Team researches and writes practical guides on mindset, personal growth, careers, money, entrepreneurship and wellbeing for ambitious Nigerians and Africans. Every article is researched from reputable sources (peer-reviewed studies, public-health bodies, regulators and recognised experts), checked for accuracy before publishing, and reviewed regularly. Read our Editorial Policy at https://mindset.ng/editorial-policy/.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Popular Articles