Proof of Demand for Small Business: Why It Matters and How to Find It

Starting a small business is a huge leap, and one of the most crucial factors that can determine your success is whether there’s real demand for what you’re offering. After all, no matter how passionate or skilled you are, if there’s no market for your product or service, it can be challenging to thrive. Proof of demand is the foundation that validates your business idea and gives you the confidence to move forward.
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But how do you prove demand for your product or service before launching? Here are several ways to validate demand for your small business:

1. Conduct Market Research
Market research is the first step in understanding if there’s a demand for your idea. Start by analysing your target audience. Who are they? What are their pain points? What solutions are they currently using?
I like to recommend using surveys, interviews, and focus groups are great ways to gather insights directly from potential customers. Ask a mixture of open and closed questions can help you determine key insights that you need to move forward with your idea.
Research competitors in your niche as well—are they successful? What’s working for them? Understanding the competitive landscape can also give you a sense of whether there’s room for another player in the market. Google is your friend!
 
2. Test with a Minimum Viable Product (MVP)
Once you have a better understanding of your market, consider launching a minimum viable product (MVP). An MVP is a basic version of your product or service designed to test your idea in the real world with actual customers. This allows you to gauge interest, gather feedback, and refine your offering before going all in.
Whether it’s a prototype, a limited version of your service, or a small batch of products, launching an MVP can give you direct proof of demand—and highlight areas for improvement.

3. Start Small
Here’s the thing! You don’t need to jump in before you are ready and sure that you want to commit 100% to your business. It also doesn’t need to break the bank. There are plenty of opportunities in St. Thomas to start small and test out your MVP and ideas. Some of your options include speaking with a Business Advisor the St Thomas & Elgin Small Business Centre and enquiring about vendor space at The Horton Farmer’s Market or the GROW Space in the Caboose by Jumbo.
 
4. Use Online Platforms and Social Media
In today’s digital world, social media and online platforms are invaluable tools for testing demand. Create content around your business idea and see how people react. This could include sharing blog posts, running polls on Instagram, or promoting your idea through Facebook ads. Analyzing how people engage with your content (likes, comments, shares, etc.) can give you an indication of how much interest exists in your product or service.
There are also a few local online groups that can be a useful way to connect with people in your area. Approach with caution and make sure you abide by the group rules!
 
Remember!
Proof of demand is a critical step in ensuring your business idea has legs. It helps you avoid costly mistakes, refine your offerings, and build confidence in your business plan.
In the end, validating demand isn’t just about confirming there’s a market—it’s about understanding your customers, improving your product, and aligning your business with their needs.

Emily Mason, Small Business Advisor

Emily Mason is an entrepreneur, business coach, and small business advocate. Originally from England, she earned a master’s in chemical engineering in Scotland before working at NatWest and becoming a certified business coach. She founded EFL Tutors, a successful online tutoring company, which she continues to run remotely. Now based in St. Thomas, Emily is excited to support local entrepreneurs through the Elgin-St. Thomas Small Business Enterprise Centre.