Finding customers and validating the market for your tech startup

You need to be able to sell, and validate that there are buyers for your product

This post is not about AI. It’s about early stage tech startups, and the problems that entrepreneurs frequently encounter in finding their first customers.

Every so often, I receive a request from an early stage entrepreneur, who is seeking advice about sales, finding customers, and marketing their venture. While I empathize with their challenges, I have become much more selective about engaging in these conversations, as the advice I have to offer is often difficult for the recipient to hear. My core advice boils down to two possibilities: either the entrepeneur needs to improve her sales skills, or she is building a product for which there is no viable market.

This advice, while direct, is not meant to be discouraging. On the contrary, it comes from a place of wishing to provide honest and valuable counsel. Struggling to acquire customers is a clear signal that something is not working, either in the sales process itself, or in the fundamental product-market fit. Entrepreneurs who find themselves in this position must be willing to confront these hard truths head on if they wish to forge a path forward.

For those whose struggle stems from a lack of sales prowess, it is important to recognize that selling is a skill that can be learned. While some people may have more natural aptitude in this area, the fundamentals of effective sales techniques can be studied, practiced, and honed over time. Entrepreneurs who lack a background in sales should prioritize developing this skill through training courses, mentorship from experienced sellers, and trial and error. Without the ability to convincingly convey your product’s value proposition to potential customers, the business will struggle to gain traction no matter how impressive the product itself may be.

For those entrepreneurs who are confronted with the possibility that they are building a product that the market simply does not want, the path forward is more challenging. Before investing significant time and resources into a venture, it is absolutely critical to test the core hypothesis that there are customers out there who are willing and able to pay for what you are offering. This validation process requires speaking with a large number of potential customers, listening carefully to their feedback, and honestly assessing their genuine intent and ability to make a purchase. Entrepreneurs must be ruthlessly honest with themselves in this process, as wishful thinking and rose-colored interpretations of customer interest will only lead to a great deal of wasted effort and time.

No one wants to be the bearer of bad news or risk dampening someone’s entrepreneurial spirit. However, providing direct and honest feedback about deficiencies in sales abilities or market viability is ultimately doing the entrepreneur a service. Sugar-coating the reality of the situation will not lead to improved outcomes in the long run. Early stage entrepreneurs who find themselves struggling with sales and customer acquisiton must confront the reality that something is not working their go-to-market approach. The path forward lies in either improving their sales skills or rigorously validating the market demand for their product, or both.