BEFORE WE BUILD: VALIDATING THE BUSINESS MODEL

MARKET STRATEGY & MVP DEFINITION

When a startup founder approached with a business plan built on unverified assumptions, I deployed quantitative research to validate the market before a single line of code was written. The data revealed a critical flaw in the monetization strategy, leading to a complete pivot that saved thousands in development costs.

A VISION WITHOUT VALIDATION

A startup founder approached me with a business plan for TunedIn Care, a high-end childcare platform. The core monetization strategy relied on a major assumption: that caregivers would pay for educational courses to join the platform.

The Challenge:

However, the existing market data was generalized. Building the platform based on this unverified assumption risked launching a product that neither side of the marketplace—parents or caregivers—would actually pay for. We needed to prove the business model before writing a single line of code.

THE INVESTIGATION

I deployed a rigorous quantitative study to find the truth. Instead of relying on intuition, we gathered data from 145 respondents (96 parents and 49 caregivers) across targeted social communities.

The Goal:

The goal was to move beyond "nice-to-haves" and define a strict MVP feature set. I weighed feature requests from both user groups to create a prioritized "Feature 0 to Feature 6" roadmap, ensuring the developer would only build what users explicitly valued.

Quantitative Methodology:

Typeform surveys distributed via Reddit & Facebook niche groups.

Feature Weighting:

Ranked features (messaging, search filters, background checks) by actual user necessity.

Feature Prioritization

Feature prioritization roadmap translating vague business goals into a prioritized developer specification

Identified user-critical features for MVP through quantitative analysis, deferring non-essential features to Phase 2 to minimize development costs and accelerate time-to-market.

THE PIVOT

The research shattered the original business assumption. The data revealed that 88% of caregivers were already certified, meaning they had zero incentive to pay for the platform's educational courses. The original revenue model was dead.

The Strategic Shift:

However, the data uncovered a new psychological hook: Gamification. While caregivers wouldn't pay for education, 72.9% stated they would take courses just to "unlock" a featured profile listing.

The Recommendation:

I advised a complete strategy pivot:

Shift Costs:

Move the financial burden to parents (who proved willing to pay for access to "vetted" talent).

Gamify Supply:

Use the courses not as a revenue stream, but as a "Badge System" for caregivers to rank higher in search results.

Experience Levels Data

Pie chart showing experience levels of caregivers, with 88% already certified

Data revealed 88% of the supply side was already certified, invalidating the education-revenue model.

Strategy Pivot

Before and after comparison showing the strategy pivot from failed monetization model to gamified user retention strategy

Transmuting a failed monetization model into a gamified user retention strategy.

Outcome:

The client received a validated Sharetribe Developer Specification and a business plan aimed at the actual market reality, preventing thousands of dollars in wasted development costs.

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