{"id":290,"date":"2026-03-07T13:38:13","date_gmt":"2026-03-07T17:38:13","guid":{"rendered":"http:\/\/www.justinmcclellan.com\/blog\/?p=290"},"modified":"2026-04-07T14:03:53","modified_gmt":"2026-04-07T18:03:53","slug":"prove-the-technology-and-the-market","status":"publish","type":"post","link":"http:\/\/www.justinmcclellan.com\/blog\/2026\/03\/prove-the-technology-and-the-market\/","title":{"rendered":"Proving the Technology and the Market \u2014 De-Risking the Venture"},"content":{"rendered":"<p>At this point, you have selected a <a href=\"http:\/\/www.justinmcclellan.com\/blog\/2015\/11\/problem-opportunity-identification\/\" target=\"_blank\" rel=\"noopener\">problem<\/a>, validated <a href=\"http:\/\/www.justinmcclellan.com\/blog\/2016\/01\/problem-refinement-and-customer-surveys\/\" target=\"_blank\" rel=\"noopener\">the customer<\/a>, defined a solution, and can articulate a clear value proposition and give an <a href=\"http:\/\/www.justinmcclellan.com\/blog\/2016\/06\/refine-the-value-proposition-and-solution\/\" target=\"_blank\" rel=\"noopener\">elevator pitch<\/a>.<\/p>\n<p>What you likely do not have is significant investment.<\/p>\n<p data-start=\"477\" data-end=\"598\">The objective now is to <strong data-start=\"501\" data-end=\"528\">de-risk the opportunity<\/strong> enough to unlock capital, secure early customers, and build momentum. This requires proving two things:<\/p>\n<ul data-start=\"635\" data-end=\"751\">\n<li data-section-id=\"ebtixa\" data-start=\"635\" data-end=\"697\"><strong data-start=\"637\" data-end=\"661\">Technology viability<\/strong> \u2014 can the solution actually work?<\/li>\n<li data-section-id=\"1a05rlp\" data-start=\"698\" data-end=\"751\"><strong data-start=\"700\" data-end=\"720\">Market viability<\/strong> \u2014 will customers pay for it?<\/li>\n<\/ul>\n<p data-start=\"753\" data-end=\"791\">Both must be demonstrated\u2014not assumed.<\/p>\n<hr data-start=\"793\" data-end=\"796\" \/>\n<h3 data-section-id=\"1qy7i4f\" data-start=\"798\" data-end=\"833\"><strong>Build a Minimum Viable Prototype<\/strong><\/h3>\n<p data-start=\"835\" data-end=\"964\">You need a <strong data-start=\"846\" data-end=\"902\">Minimum Viable Product (MVP)<\/strong> that delivers a meaningful portion of your value proposition. It does not need to be complete. It needs to be:<\/p>\n<ul data-start=\"1016\" data-end=\"1148\">\n<li data-section-id=\"1a9c94x\" data-start=\"1016\" data-end=\"1058\">Functional enough to demonstrate value<\/li>\n<li data-section-id=\"17bgc3p\" data-start=\"1059\" data-end=\"1093\">Simple enough to build quickly<\/li>\n<li data-section-id=\"1j5lc6k\" data-start=\"1094\" data-end=\"1148\">Credible enough that a customer takes it seriously<\/li>\n<\/ul>\n<p data-start=\"1150\" data-end=\"1198\">If it cannot be demonstrated, it cannot be sold.<\/p>\n<hr data-start=\"1200\" data-end=\"1203\" \/>\n<h3 data-section-id=\"1l8n63s\" data-start=\"1205\" data-end=\"1239\"><strong>Get in Front of Customers Early<\/strong><\/h3>\n<p data-start=\"1241\" data-end=\"1318\">The goal is to put the MVP in front of real customers as quickly as possible. Initial engagement typically includes:<\/p>\n<ul data-start=\"1360\" data-end=\"1538\">\n<li data-section-id=\"zcpj4p\" data-start=\"1360\" data-end=\"1412\"><strong data-start=\"1362\" data-end=\"1371\">Lab demos<\/strong> \u2014 show the concept and gather feedback<\/li>\n<li data-section-id=\"y1rtxm\" data-start=\"1413\" data-end=\"1469\"><strong data-start=\"1415\" data-end=\"1425\">Prototype trials<\/strong> \u2014 allow limited use in a real environment<\/li>\n<li data-section-id=\"jqpulo\" data-start=\"1470\" data-end=\"1538\"><strong data-start=\"1472\" data-end=\"1496\">Iterative refinement<\/strong> \u2014 adjust based on what actually matters<\/li>\n<\/ul>\n<p data-start=\"1540\" data-end=\"1617\">Early interactions are often unpaid. That is acceptable\u2014but only temporarily.<\/p>\n<hr data-start=\"1619\" data-end=\"1622\" \/>\n<h3 data-section-id=\"wfwto0\" data-start=\"1624\" data-end=\"1656\"><strong>Transition to Paid Engagement<\/strong><\/h3>\n<p data-start=\"1658\" data-end=\"1718\">The key milestone is not usage\u2014it is <strong data-start=\"1695\" data-end=\"1717\">willingness to pay<\/strong>. You need to push toward:<\/p>\n<ul data-start=\"1746\" data-end=\"1828\">\n<li data-section-id=\"18jczmt\" data-start=\"1746\" data-end=\"1761\">Paid trials<\/li>\n<li data-section-id=\"dgvkmf\" data-start=\"1762\" data-end=\"1781\">Pilot contracts<\/li>\n<li data-section-id=\"16mhwme\" data-start=\"1782\" data-end=\"1828\">Letters of intent tied to commercial terms<\/li>\n<\/ul>\n<p data-start=\"1830\" data-end=\"1919\">If customers will not pay\u2014even at a reduced rate\u2014the value proposition is not yet proven.<\/p>\n<hr data-start=\"1921\" data-end=\"1924\" \/>\n<h3 data-section-id=\"yyn9nu\" data-start=\"1926\" data-end=\"1962\"><strong>Develop a Clear Execution Roadmap<\/strong><\/h3>\n<p data-start=\"1964\" data-end=\"1983\">Executives authorizing R&amp;D funds or investors writing checks for equity will ask: <strong data-start=\"1985\" data-end=\"2031\">\u201cWhat are you going to do with the money?\u201d<\/strong><\/p>\n<p data-start=\"2033\" data-end=\"2097\">You need a clear, time-bound plan that ties funding to outcomes. At a minimum, your roadmap should show:<\/p>\n<h5><strong>Technology Milestones<\/strong><\/h5>\n<ul data-start=\"2167\" data-end=\"2238\">\n<li data-section-id=\"1ug5zsl\" data-start=\"2167\" data-end=\"2192\">Prototype development<\/li>\n<li data-section-id=\"ls04nf\" data-start=\"2193\" data-end=\"2220\">Integration and testing<\/li>\n<li data-section-id=\"16icj5f\" data-start=\"2221\" data-end=\"2238\">MVP readiness<\/li>\n<\/ul>\n<h5 data-section-id=\"eblf27\" data-start=\"2240\" data-end=\"2261\"><strong>Market Milestones<\/strong><\/h5>\n<ul data-start=\"2263\" data-end=\"2349\">\n<li data-section-id=\"1o6ccom\" data-start=\"2263\" data-end=\"2301\">Customer interviews and validation<\/li>\n<li data-section-id=\"17p837l\" data-start=\"2302\" data-end=\"2322\">Demo deployments<\/li>\n<li data-section-id=\"1ihpz3l\" data-start=\"2323\" data-end=\"2349\">Trials (unpaid \u2192 paid)<\/li>\n<\/ul>\n<h5 data-section-id=\"1f3gykn\" data-start=\"2351\" data-end=\"2376\"><strong>Commercial Milestones<\/strong><\/h5>\n<ul data-start=\"2378\" data-end=\"2450\">\n<li data-section-id=\"y7jo18\" data-start=\"2378\" data-end=\"2397\">Initial revenue<\/li>\n<li data-section-id=\"1y0j2u1\" data-start=\"2398\" data-end=\"2422\">Pipeline development<\/li>\n<li data-section-id=\"unj2rn\" data-start=\"2423\" data-end=\"2450\">Repeatable sales motion<\/li>\n<\/ul>\n<p data-start=\"2452\" data-end=\"2530\">This roadmap should be grounded in reality\u2014specific actions, not vague intent.<\/p>\n<hr data-start=\"2532\" data-end=\"2535\" \/>\n<h3 data-section-id=\"1j73mqv\" data-start=\"2537\" data-end=\"2578\"><strong>Keep It Time- and Resource-Constrained<\/strong><\/h3>\n<p data-start=\"2580\" data-end=\"2611\">You are operating with limited:<\/p>\n<ul data-start=\"2613\" data-end=\"2662\">\n<li data-section-id=\"1w997ka\" data-start=\"2613\" data-end=\"2624\">Capital<\/li>\n<li data-section-id=\"5mcl6l\" data-start=\"2625\" data-end=\"2633\">Time<\/li>\n<li data-section-id=\"rwc6hd\" data-start=\"2634\" data-end=\"2662\">Organizational bandwidth<\/li>\n<\/ul>\n<p data-start=\"2664\" data-end=\"2705\">Your plan should reflect that constraint:<\/p>\n<ul data-start=\"2707\" data-end=\"2862\">\n<li data-section-id=\"k2mf9n\" data-start=\"2707\" data-end=\"2777\">Focus on the <strong data-start=\"2722\" data-end=\"2749\">critical few milestones<\/strong> that unlock the next step<\/li>\n<li data-section-id=\"1hj4hvb\" data-start=\"2778\" data-end=\"2818\">Avoid overbuilding before validation<\/li>\n<li data-section-id=\"l58v45\" data-start=\"2819\" data-end=\"2862\">Tie spending directly to risk reduction<\/li>\n<\/ul>\n<hr data-start=\"2864\" data-end=\"2867\" \/>\n<h3 data-section-id=\"6hy28e\" data-start=\"2869\" data-end=\"2897\"><strong>Extend the Elevator Pitch<\/strong><\/h3>\n<p data-start=\"2899\" data-end=\"2985\">At this stage, your elevator pitch should evolve to include <strong data-start=\"2959\" data-end=\"2984\">execution credibility<\/strong>. In addition to problem, solution, and value, you should be able to summarize:<\/p>\n<ul data-start=\"3066\" data-end=\"3151\">\n<li data-section-id=\"s6d0fd\" data-start=\"3066\" data-end=\"3089\">What you will build<\/li>\n<li data-section-id=\"1vevpgx\" data-start=\"3090\" data-end=\"3116\">Who you will test with<\/li>\n<li data-section-id=\"zq5a34\" data-start=\"3117\" data-end=\"3151\">When you will generate revenue<\/li>\n<\/ul>\n<p data-start=\"3153\" data-end=\"3254\">In <strong data-start=\"3156\" data-end=\"3173\">2\u20133 sentences<\/strong>, you should answer: <strong data-start=\"3196\" data-end=\"3254\">\u201cHow do we get from here to first meaningful revenue?\u201d<\/strong><\/p>\n<hr data-start=\"3256\" data-end=\"3259\" \/>\n<h3 data-section-id=\"1jicrl8\" data-start=\"3261\" data-end=\"3281\"><strong>Guiding Principle<\/strong><\/h3>\n<ul data-start=\"3283\" data-end=\"3431\">\n<li data-section-id=\"1grid02\" data-start=\"3283\" data-end=\"3326\"><strong data-start=\"3285\" data-end=\"3324\">Build just enough to prove it works<\/strong><\/li>\n<li data-section-id=\"1al0itk\" data-start=\"3327\" data-end=\"3376\"><strong data-start=\"3329\" data-end=\"3374\">Sell just enough to prove people will pay<\/strong><\/li>\n<li data-section-id=\"b74fz7\" data-start=\"3377\" data-end=\"3431\"><strong data-start=\"3379\" data-end=\"3429\">Use both to unlock the next tranche of capital<\/strong><\/li>\n<\/ul>\n<hr data-start=\"3433\" data-end=\"3436\" \/>\n<h3 data-section-id=\"17mspby\" data-start=\"3438\" data-end=\"3462\"><strong>Stay Customer-Focused<\/strong><\/h3>\n<p data-start=\"3464\" data-end=\"3545\">This phase is not the end of customer engagement\u2014it is where it becomes critical.<\/p>\n<ul data-start=\"3547\" data-end=\"3668\">\n<li data-section-id=\"wpdp6f\" data-start=\"3547\" data-end=\"3580\">Continue talking to customers<\/li>\n<li data-section-id=\"134ftl8\" data-start=\"3581\" data-end=\"3614\">Listen to real usage feedback<\/li>\n<li data-section-id=\"1g9if26\" data-start=\"3615\" data-end=\"3649\">Observe actual buying behavior<\/li>\n<li data-section-id=\"egygzp\" data-start=\"3650\" data-end=\"3668\">Adjust quickly<\/li>\n<\/ul>\n<p data-start=\"3670\" data-end=\"3685\">And throughout:<\/p>\n<ul data-start=\"3687\" data-end=\"3721\">\n<li data-section-id=\"12s69eh\" data-start=\"3687\" data-end=\"3721\"><strong data-start=\"3689\" data-end=\"3719\">Pre-sell whenever possible<\/strong><\/li>\n<\/ul>\n<hr data-start=\"3723\" data-end=\"3726\" \/>\n<h3 data-section-id=\"1mrtquc\" data-start=\"3728\" data-end=\"3742\"><strong>Bottom Line<\/strong><\/h3>\n<ul data-start=\"3744\" data-end=\"3911\">\n<li data-section-id=\"4ibu11\" data-start=\"3744\" data-end=\"3793\">Prove the technology with a working prototype<\/li>\n<li data-section-id=\"115ayk7\" data-start=\"3794\" data-end=\"3862\">Prove the market with real (preferably paid) customer engagement<\/li>\n<li data-section-id=\"qppim5\" data-start=\"3863\" data-end=\"3911\">Tie both to a clear, credible execution plan<\/li>\n<\/ul>\n<p data-start=\"3913\" data-end=\"3979\">If you cannot demonstrate both, the venture is not ready to scale.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At this point, you have selected a problem, validated the customer, defined a solution, and can articulate a clear value proposition and give an elevator pitch. What you likely do not have is significant investment. The objective now is to de-risk the opportunity enough to &hellip; <a href=\"http:\/\/www.justinmcclellan.com\/blog\/2026\/03\/prove-the-technology-and-the-market\/\" class=\"more-link\"><span>Continue reading<span class=\"screen-reader-text\">Proving the Technology and the Market \u2014 De-Risking the Venture<\/span><\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":622,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,18,7,19,17],"tags":[],"class_list":["post-290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-commercialization","category-finance","category-marketing","category-product-management"],"_links":{"self":[{"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/posts\/290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/comments?post=290"}],"version-history":[{"count":8,"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/posts\/290\/revisions"}],"predecessor-version":[{"id":761,"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/posts\/290\/revisions\/761"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/media\/622"}],"wp:attachment":[{"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/media?parent=290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/categories?post=290"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.justinmcclellan.com\/blog\/wp-json\/wp\/v2\/tags?post=290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}