If you want to be an entrepreneur, you may have spent months or even years searching for the perfect idea to launch your small business, and now you feel that you have found the right path to achieve it. You’re ready to dive in, quit your job, and dedicate yourself to launch your business whole-heartedly.
All of this new business idea or the new marketing campaign sounds great, but then suddenly, it turns out to be a catastrophic failure! Why? So, before starting any project, it is necessary to look at your idea (your products, services, and strategy) from a broader and more practical point of view. Okay, but how do you do that?
Hence, in this post, we will share with you some tips through which you can save your time and money and have enough evidence to proceed with your idea and make it a great business.
Key Steps: to validate a business idea
Have an initial research – Know your market and potential customer
Before taking action with the creation of the brand, logo, product, or anything like that, start looking for more information about the market, your idea will cover. The first tip is to identify your overall market size.
It is always good to have a sense of how much money is at stake. Look for information in surveys, reports, surveys from public or private organizations, and anything else that gives you a subsidy to prove that there is a financial opportunity in this market.
After verifying, if you find the market is large, then try to talk to people in segment-wise, and mainly, with those who are more likely to feel the “pain” that your solution intends to “cure.”
Make a script of questions in which you can follow the same line of reasoning with everyone you interact with. And, also try to identify how the current process works, what tools to be used, what bottlenecks exist, what benefits are expected, what has value, and what has no value in the user’s perception, and so on. Try to explore all the points you think are relevant to your solution.
Remember to be direct and avoid inducing the answers to what you want to hear. It’s also advisable to do the interviews in person. Getting closer to your potential customer and your work environment will bring you much more valuable insights than a distance conversation.
Build a minimum viable product
If your idea is good and gets approved by trusted people with proven expertise, it’s time for you to build an MPV – Minimum Viable Product. Develop a prototype that is as close as possible to the service or product you want to sell and do several tests in real consumption situations.
At this stage, try to understand how the customer deals with your proposal and what are their difficulties. If there is some adherence, then what can be improved? If your MPV passes the first tests of use, make a good impression, and have acceptance, go ahead.
At this point, the focus should be on testing the market with something simple and affordable. For instance, if you want to sell clothes that you have not yet found in the local store, before opening a store (renting a point, furnishing it and creating the initial stock), try showing some pieces to potential customers by going to their homes.
Build your identity
At first, this may seem like a lot of work, but over time you’ll be glad you did. If you determine that your business idea is not going to work, you are likely to be disappointed, but you will avoid wasting time and money.
The customer needs to understand your brand, your product or service and then want to buy it. When you’re ready to start your business or want to test the market, try to validate your idea first.