How to Use the 'Sell to Learn' Approach to Commercially Validate New Business Opportunities
In the fast-paced world of corporate entrepreneurship, innovation isn't about taking blind leaps—it's about reducing uncertainty and navigating the unknown strategically.
The 'Sell to Learn' approach can help corporate innovators identify viable opportunities faster while avoiding the pitfalls of premature solution-building.
This guide will walk you through the key steps to apply 'Sell to Learn' effectively, saving you time and resources, even if you discover that a particular opportunity isn't worth pursuing.
What is Sell to Learn?
'Sell to Learn' is a tactical approach where you validate market demand and opportunity fit by engaging directly with the market—through selling. Instead of assuming that a carefully built product will solve problems, you test those assumptions by interacting with real prospects. Every conversation becomes an opportunity to learn, sharpen your understanding, and gather insights that allow you to make informed decisions.
The journey to product-market fit can be long and filled with uncertainty, often referred to as the "pain cave". Many corporate entrepreneurs spend years trying to figure out what will resonate with customers.
By using "Sell to Learn," you can reduce this period of ambiguity through rapid testing and direct market engagement - starting with ONE REAL CUSTOMER, & building a model from there. Rather than investing significant resources into building something unproven, you sell early and learn fast—cutting through the uncertainty and ensuring that what you build truly meets market needs. Pinpoint demand, then optimize supply for maximum impact.
Cite: Reframe Harvard Innovation Labs
The Guide
This guide is for corporate entrepreneurs looking to validate new business ideas and accelerate time to market. The 'Sell to Learn' approach helps you test assumptions, learn from the market, and build momentum quickly.
We assume that as a starting point you've identified a spark for a new business opportunity in response to a market movement—such as a regulatory change, consumer trend shift, a competitor's move, or a technology breakthrough.
Here's how you would use the 'Sell to Learn' approach from start to finish.
Step 1: List Out the Theory of Change and Hypotheses
Start by defining the theory of change—what needs to be true for your idea to be realized? Clearly articulate the key conditions, and identify your hypotheses. Understand that you are stepping into uncertainty, and the typical risk-reduction mentality of your organization may create resistance. Your goal is to outline specific, testable assumptions about your target market.
- Input Example: A new regulation requires logistics companies to reduce their carbon emissions. You hypothesize that “Logistics companies in Northern Europe face challenges with hydrogen fueling that prevent cost-effective adoption.”
- Clearly define your customer segment and their specific pain points. Make sure your assumptions can be validated or invalidated through real customer engagement.
What is Theory of Change?
What is Theory of Change? The theory of change is a framework that helps you articulate how and why a desired change is expected to happen in a particular context. It involves outlining the steps needed to reach a goal and identifying the conditions that must hold true for the change to occur. Essentially, it’s a roadmap that connects your inputs, activities, outputs, and outcomes, explaining how these elements lead to your intended impact. Example of a Theory of Change Statement: “If small logistics companies can gain access to a simple and cost-effective hydrogen fueling management tool, then they will be able to adopt hydrogen fueling more effectively, thereby reducing emissions and complying with new regulatory requirements.” This statement explains how providing a specific solution can lead to broader adoption and compliance, highlighting the conditions that need to hold true for success.
Step 2: Identify Possible Entry Points
List out potential entry points by focusing on where there is existing market pull or demand, even for small aspects. Prioritize these based on high impact and low barriers to execution, ideally where you have existing inroads such as established relationships or partnerships.
- Example: Instead of targeting all logistics companies, focus on a subset, such as small logistics companies handling short-haul deliveries within industrial zones where you already have relationships or an existing partnership.
- Prioritization Tip: Use a simple 2X2 matrix to rank opportunities based on potential impact versus ease of execution.
Prioritize those that offer the highest impact with the lowest effort, especially where you have existing connections.
Step 3: Engage Target Users to Validate Demand
Start engaging with potential customers to validate your understanding of their needs and your proposed solution. Conduct short, targeted interviews where the first half focuses on exploratory questions and the second half introduces your proposed entry offer.
- Example: Reach out to small logistics companies via email to set up interviews. In the first part, understand their current challenges and pain points. In the second part, present a simple one-pager summarizing your value proposition.
- Engagement Tip: Engage as a mock startup or independent entity rather than representing your corporate brand. This minimizes reputational risk and often results in more honest feedback.
Step 4: Iterate Based on Feedback
Use the insights from your interviews to refine your understanding of demand and the willingness of users to adopt your solution. Iterate quickly—think of this as deconstructing and reconstructing in an upward motion.
- Example: If users of your simple fueling management tool indicate that scheduling is not the main issue but tracking costs is, shift focus to incorporate cost tracking features. Aim for around 5 iterations to refine your understanding.
- Iteration Tip: The goal here is not a dramatic pivot but rather incremental reconstruction—strengthening your offering with each round of user feedback.
- Practical Tip: Have a spreadsheet where you have your initial understanding of the user and demand plus your offering and each time your model updates add a new row underneath highlighting what changed and why.
Step 5: Test Willingness to Pay for Serviceable Use Cases
With your revised offer, approach potential early customers to test their willingness to pay. The goal is to validate a genuine value exchange for a small-scale pilot or entry use case.
- Example: Offer a paid pilot for your improved management tool. Aim for a nominal fee to establish real commitment—such as a monthly fee for using the updated service.
- Payment Tip: Willingness to pay is the strongest validation of demand. Avoid mixed signals by ensuring that interest is backed by financial commitment.
- Use Existing Tools: E.g. spreadsheets + reports to start providing customers value ASAP:
Step 6: Start to Deliver & Scale What Works
Once you have validated what works through delivery, begin scaling while aligning with your broader vision. Leverage the momentum to solicit organizational buy-in and secure additional resources. Be open about the form the new offering will take to stay —whether it ends up as a standalone venture, a spin-in, a new business unit, or a joint venture.
- Example: Reinforce the features that users found most valuable—such as cost tracking—and use this traction to build an internal case for expanding the initiative. Work to gain support from relevant business units or consider external partnerships for faster scaling.
Cite: Reframe Harvard Innovation Labs
Summary for Corporate Entrepreneurs
Start Small & Bottom-Up
Focus on high-potential niches rather than trying to solve everything at once or relying solely on top-down analysis (like TAM, SAM, SOM).
Learn by Selling Use Cases
Engage directly with the market—but don’t overbuild. Use low-fidelity tools and leverage existing relationships to test and learn without falling into the trap of loss aversion.
Iterate, Don’t Pivot
Evolve through deconstructing and reconstructing based on real feedback rather than completely scrapping ideas.
Validate Payment
Willingness to pay is the ultimate test. Ensure your value proposition translates into a financial commitment.
Expand Wisely
Use validated success to expand across segments and within your customer base, while aligning with organizational goals.
By applying 'Sell to Learn,' corporate innovators can reduce risk, accelerate learning, and build offerings that truly resonate with market needs—all while moving quickly and making informed decisions.