Rajat Paharia, founder of Ask Steve, is no stranger to the complex world of startups. With experience building companies and working with cutting-edge technology, he understands that customer discovery is one of the most critical components to the success of a business. In this interview, Rajat shares insights on his approach to qualifying customers, navigating high-stakes conferences, and incorporating feedback to drive product-market fit for Ask Steve—a tool designed to unlock the power of AI for professionals.
Fast-Tracking Learning at Conferences
When Rajat attended the HR Technology Conference, his goal was simple: figure out if HR was a viable market for Ask Steve. He shared, “I could sit at my computer hypothesizing all day long about customers and what they need, but none of that is tethered to reality. The only way to reality check your hypotheses is to get them in front of actual customers and hear what they say.” To speed up this process, Rajat invested time and resources in attending the event, allowing him to talk to a large number of potential customers in just a few days.
Filtering Feedback
Conferences often provide a flood of feedback, but how does Rajat decide what to act on? He explained that he listens closely to customers and slots their feedback into his internal model of the world. “Every new data point is an opportunity to re-evaluate my beliefs. Some feedback unlocks new opportunities I hadn’t considered, while other ideas don’t align with my vision for Ask Steve.” He emphasizes the importance of staying true to the core of what Ask Steve is while remaining flexible enough to adapt to valuable insights.
Defining Success in Customer Discovery
According to Rajat, two key metrics define success in customer discovery: willingness to spend money and market demand. “The #1 metric that matters is whether a customer will spend money on your solution. The second is whether the market is pulling your solution, rather than you having to push it.” For him, these metrics are the clearest indicators that you’ve found a viable customer segment.
Overcoming Challenges in a Horizontal Market
One of the biggest challenges Rajat faced was defining an Ideal Customer Profile (ICP) for Ask Steve, a tool that can be applied across many industries. He shared that narrowing down ICPs and creating tailored solutions for each vertical is critical. “I’ve identified several ICPs and built solutions for each one,” he explained. By testing different markets and measuring traction, Rajat has been able to refine his approach and focus on the most promising opportunities.
Advice for Founders: Get Out of "Thoughtland"
- “Pretotype” Early: Rajat recommends using a “pretotype” to test your hypothesis. This helps gather real customer feedback without heavily investing in development upfront.
- Validate Assumptions: Don’t just assume your product will work—put it in front of your target customers and see how they react. This allows you to challenge your assumptions early.
- Quickly Iterate with Data: Use the feedback you collect to improve your product. “As soon as you take investor money, you’re on a train with no getting off,” Rajat explains, meaning that once you’re committed, it’s essential to work with data-driven insights to steer your business forward.
By testing early, validating real-world data, and iterating based on feedback, founders can make smarter decisions and avoid the pitfalls of staying too long in the planning phase.
Leveraging the NWA Ecosystem
Rajat has also tapped into the Northwest Arkansas startup ecosystem to accelerate Ask Steve’s growth. “When I first moved here, I tried to get involved any way that I could, primarily through mentoring in the Fuel and Bounds Accelerators and the New Venture Development program at the University of Arkansas,” Rajat explains. “Through that, I was able to see what a supportive ecosystem is in place for startups here, and how so many parties are making an effort to drive entrepreneurship and innovation in the region. I’m currently participating in the AI/ML cohort at the Fuel Accelerator and have had a great experience. Coming from Silicon Valley, it’s clear that NWA is a very special place to start a company.”
