What is Assumption Testing primarily used for?

Assumption Testing is primarily used to validate critical business assumptions because it focuses on understanding and verifying the foundational hypotheses that inform a startup's strategic direction. In a startup environment, where uncertainty is high and resources may be limited, entrepreneurs need to identify what aspects of their business model, market, and customer behavior are most pivotal to success. By rigorously testing these assumptions through experiments and data collection, startups can gain insights that either confirm or challenge their initial beliefs.

This process helps entrepreneurs make informed decisions about their product development, target market, and overall business strategy. Validating assumptions reduces the risk of pursuing invalid ideas and guides startups toward solutions that are more likely to resonate with their customers, ultimately increasing the chances of sustainable growth and profitability.