How can you align your product validation process with your company's risk tolerance?

2 Choose the right validation methods

There are many ways to validate your product, such as surveys, interviews, landing pages, prototypes, MVPs, beta testing, A/B testing, and analytics. Each method has its own advantages and disadvantages, as well as its own level of risk. You need to choose the right validation methods for your product, based on your goals, assumptions, resources, and constraints. For example, if you want to validate your value proposition, you might use a landing page or a survey, which are relatively low-risk and low-cost methods. If you want to validate your usability, you might use a prototype or an MVP, which are more risky and costly methods, but also more realistic and reliable.

3 Define your validation criteria

Before you start validating your product, you need to define your validation criteria, which are the metrics and indicators that will tell you if your product is solving a real problem for a real market. Your validation criteria should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, if you are validating your landing page, you might use the number of sign-ups, the conversion rate, the bounce rate, and the feedback as your validation criteria. You also need to set a threshold or a target for each criterion, which will help you evaluate your results and decide your next steps.

4 Plan your validation process

Once you have your validation methods and criteria, you need to plan your validation process, which is the sequence of actions and experiments that will help you test your product assumptions and hypotheses. Your validation process should be iterative, meaning that you should start with small and simple tests, and then gradually increase the complexity and scope of your tests, based on your learning and feedback. Your validation process should also be aligned with your company's risk tolerance, meaning that you should consider the potential impact and consequences of your tests, and how they fit with your company's strategy and objectives. For example, if your company is risk-averse, you might want to limit your validation process to a small and selected group of users, and avoid publicizing your product until you have enough evidence and confidence. If your company is risk-seeking, you might want to expand your validation process to a larger and more diverse group of users, and leverage the publicity and buzz around your product to attract more attention and feedback.

5 Communicate your validation results

The last step of your product validation process is to communicate your validation results, which are the outcomes and insights that you have gained from your tests and experiments. You need to communicate your validation results to your stakeholders, such as your team, your manager, your customers, and your investors. You need to communicate your validation results clearly, honestly, and persuasively, using data, stories, and visuals. You also need to communicate your validation results in a way that matches your company's risk tolerance, meaning that you should highlight the positive and negative aspects of your product, and how they affect your company's opportunities and threats. For example, if your company is risk-averse, you might want to emphasize the validation of your product's feasibility and viability, and how it reduces the uncertainty and risk of failure. If your company is risk-seeking, you might want to emphasize the validation of your product's desirability and differentiation, and how it increases the value and potential of success.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?