Understand
Validation means reducing uncertainty about a specific business decision. Interest, compliments and social-media reactions are different from evidence that an eligible customer will pay for an offer you can deliver. No small test guarantees future demand.
Check
State one question to answer, such as which customer group experiences the problem often enough to seek a solution. Define what would make you continue, change the offer or stop before seeing the results. Check whether the people you can reach represent the intended customers.
Compare
List direct competitors, indirect alternatives and doing nothing. Compare the customer’s full choice: price, convenience, confidence, effort and switching cost. A competitor comparison should record the date and source of each observation; do not invent confidential sales figures.
Prepare
Plan how you will collect evidence: interviews, observation, published data or a limited trial. Ask neutral questions about past behaviour and existing spending rather than leading people towards your preferred answer. Collect only information you need and explain how responses will be used.
Do
Run the smallest useful test and keep observations separate from interpretation. Record how participants were selected, how many responded and what the test did not measure. If you offer a paid trial, make the price, deliverable and cancellation conditions clear before accepting an order.
Verify
Look for evidence that contradicts your idea as well as evidence that supports it. Compare the result with your decision criteria. Check whether enthusiasm came from friends, an unrepresentative sample or a price you cannot sustain. Treat inconclusive results as a reason to improve the test, not proof of demand.
Maintain
Keep a dated evidence log as the offer changes. Recheck customer needs and competitor alternatives before expanding. A result for one location, season or customer group should not automatically be applied to another.
A worked example
Illustrative exercise: before stocking a new product, a shop interviews target customers about their last purchase and tests a clearly described small batch. It records actual orders, delivery effort and reasons people declined. It does not describe survey interest as guaranteed revenue.
Common mistakes
- Asking “Would you buy my excellent idea?” instead of learning about an existing problem.
- Counting the same person several times across different channels.
- Ignoring evidence from people who chose an alternative.
Put it into practice
Work through these prompts. Ticks last only while this page is open; no answers are sent or stored. Download the blank worksheet to keep your own notes.
Supporting reading
Sources inspected 7 November 2026. Exercises and examples above are original teaching material; the linked organisations have not endorsed this guide.
- Business Wales — planning and using your market research
Welsh business support; the research method is general, not a statement of local legal duties.
- Jersey Business — developing a business plan
Jersey business support; general planning guidance.