Service Provider Backlog Signals

A simple but effective way to validate market demand by looking at service provider backlogs, demonstrated through a quilting business case study.

The Market Research Method

• Look for service providers with long wait times
  • Example: Quilt stitching service had 1-year waitlist
  • Long waits indicate excess demand relative to supply
• Validate demand through basic questions
  • Ask if others are similarly backed up
  • Confirm if backlog is consistent across providers

Why This Method Works

• Shows real market demand without complex research
• Identifies genuine customer pain points
• Reveals underserved markets
• Validates willingness to pay
• Demonstrates market size through existing demand

Case Study: Missouri Star Quilt Company

• Found quilting market through service backlog
  • Mother took quilt to get stitched, discovered 1-year wait time
  • Basic validation: Asked if other providers were also backed up
• Market entry strategy
  • Started by addressing backlog problem
  • Focused on serving existing demand
  • Evolved into largest quilting company
    • Now does $100M+ in revenue
    • Employs 400+ people

Key Takeaway

• Simple observation of service provider backlogs can reveal significant business opportunities
• No need for complex market research when clear demand signals exist
• Look for industries where customers are willing to wait due to lack of alternatives