3 Ways To Validate You Have A $1,000,000 Business Ideas (#353)

26 Aug 2022 · 6 min
6:22

In this episode of One Question Friday, Sam Parr answers a caller’s question about how to test and validate business ideas. He outlines three escalating‑fidelity approaches. The first is low‑fidelity: conduct problem‑oriented customer interviews using the principles from The MOM Test, focusing on the customer’s pain, how big the problem is, and the language they use, while avoiding pitching. The second is medium‑fidelity: create a concrete offer (landing page, ad, flyer, email, or simple payment request) and ask prospects to pre‑commit, adding friction (e.g., a small payment) to gauge real demand. The third, highest‑fidelity method is to become the customer yourself or deeply embed with target users—interning, shadowing, or building a solution for a problem you personally experience—so you have near‑certain knowledge of the problem and a ready‑made solution. Sam illustrates each method with real examples: a basketball‑camp pitch that secured a $1,800 commitment via Venmo; Zooper’s founder who spent a year talking to electricians and secured pre‑commitments before building; and Al from Next Health who worked as a medical secretary to design software for doctors. He stresses that volume matters—talking to hundreds of prospects and maintaining high intensity is crucial—and that courage is required to execute these tests, as many founders are held back by fear.

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