New business venturing: Product-market research

Developing key skills for startup businesses

Our students develop an understanding in the classroom about the theory for how an entrepreneur can successfully develop a business opportunity into a product for a new venture. This relates to the Customer Development Model and the Lean Startup methodology whose principles are widely applied in the startup community and, indeed in product development.

Entrepreneurs validate key hypotheses around a product prototype to achieve a product-market fit and then build a story around it to create a scaling strategy connecting the different parts of the business model. This also relates to Entrepreneurial Finance where entrepreneurs need to create a story around their scaling strategy to pitch for external funding.

Students then apply their learning in collaboration with designated startups by carrying out product-market research around the company’s product prototype. The combination of theory and real-world experience helps students develop a deeper understanding of key concepts related to Entrepreneurship while they are expected to develop meaningful insights for the partner companies.

How it works

After an initial meeting with the company, our student teams formulate a founder’s brief around the founder’s vision for the company and the product to demonstrate their understanding of the context for the project. This includes initial hypotheses around the key parts of the business model for a product prototype including the product, the market and the scaling strategy. Students are then allowed out of the classroom to begin their research.

Through market-industry analysis and semi-structured interviews with potential stakeholders, the students evaluate the hypotheses further in close collaboration with the company stakeholder. The students attempt to validate hypotheses to improve the problem-solution fit and the product-market fit.

Typical outcomes include refined market segmentation, product features, and revenue models which are presented and discussed in a stakeholder presentation. Based on the feedback from the company stakeholder, the students then research further scaling strategies and funding opportunities which are summarised in an individual scaling and funding report.

Benefits for your business

Project outcomes may include the following:

• Key insights and validation for new market segments
• Key insights and validation for new product features
• Key insights for scaling strategies and funding opportunities
• Transfer of learning about research methodology.

Why get involved

• Cost-effective resource: Startup companies typically face resource constraints so student resources can provide cost-effective means to research new markets or to research a product-market fit for a product prototype.
• Get a fresh perspective: Partner companies can gain a fresh perspective into new potential markets, product features, or scaling strategies to improve a product-market fit.
• Knowledge transfer: Partner companies can gain new insight into research methodologies through the transfer of learning with students.
• Networking opportunities: You'll meet with students, academic staff and other stakeholders throughout the project.

What we need from your company

• Your company should have a prototype whose product features are easily understood by students and have some tangible research for a designated market segment.
• You should expect to commit a minimum of two hours a week to mentor the students for the duration of the project, including weekly team meetings and the stakeholder presentation.
• Make sure student interests align with your company through assessment, as they are expected to create positive outcomes for you.