5 Steps to Testing Your Business Idea

5 Steps to Testing Your Business Idea

Simon Jenner

Thursday, 17 December 2020

All of your thoughts about the brilliance of your Big Idea are initially just assumptions – that is, until you put them to the test.

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Startups

If there is one truth in the startup world, it is that the consumer market is ever-changing. What worked 10 weeks ago - or in some cases, even 10 days ago - might not be applicable to the market you’ll be launching your product into. For this reason, it is crucial for you to validate your business idea long before building your MVP or pitching to investors.Validating your business idea early on allows you to build a stronger product for your target audience, increasing your chances of achieving success. Rather than taking your friends’ and family’s word for how great your idea is, you can easily gather the hard data to back up your confidence.We’ve compiled 5 steps to test your business idea prior to devoting any significant amount of time or financial resources towards your startup.1. Put your Big Idea down on paperYes - we actually mean to get a piece of paper and pen and put it in writing. You might be surprised how easy it is to gloss over major details of your idea when it’s an intangible concept in your mind. This by no means needs to be an entire business plan, but consider answering the following questions:What is the problem you are solving, and who are you solving it for?How does your Big Idea solve this problem?What features will you integrate into your product to address the problem?Who knows, maybe you’ll have this paper framed and hanging in your big, fancy CEO office one day.2. Find interested parties within your network As an entrepreneur, you’ve likely made quite a few connections in your life. Even if you’re new to the startup world, don’t fret - anyone you’ve met along the way, such as colleagues or university professors, could be part of your network for this step. We aren’t suggesting you turn to your friends and family, but instead, sort through anyone you have contact with who might fall into your target audience or feel impacted by the problem you are solving. Begin reaching out to these individuals about your business idea and see if any of them would be willing to discuss it’s potential with you.3. Interview these partiesNo matter the lengths technology reaches, an old-fashioned interview will never be replaceable. Schedule a time to sit down with each person you identified in your network as an interested party.Prior to presenting your idea to them, discuss the problem you’ve identified. What is their experience with it, how large of a problem is it for them, and what are their desires and needs in a solution?Once you’ve gathered that baseline, introduce them to the solution you’ve thought of and features you plan to include when building your MVP. Ask for their opinions and if they feel it would fill a specific market need. Continue to ask the magic question - “Why?”. Don’t hesitate to ask anything for fear of getting an answer you don’t want; remember that any thought you have about your idea is just an assumption until you test it. Keep in mind that interest in your idea is not the same as a desire to purchase your product. Although, you still may uncover some potential investors or business startup mentors among those that aren’t interested in becoming your customers.4. Identify your Value PropositionYour Big Idea needs a Value Proposition. Beyond the fancy features and seamless user interface you plan to include, determine what the ultimate value is that you are bringing to consumers.If you are unable to identify that value, your business idea hasn’t quite passed the test yet. Take this as a sign to rework it before investing any more resources into this idea. Don’t let this discourage you; it might just require a simple pivot in your idea before building your MVP.5. Make solid decisionsWith the consumer market evolving so quickly, your startup’s chances of success will greatly benefit from decisiveness. You could easily spend days fretting over minute details, but this will not efficiently progress your Big Idea.Now that you’ve taken the time to interview potential consumers and identify your value proposition, you have adequate data to make final decisions about your product. You might even consider utilising no-code technology to streamline the decision-making process even more and get your MVP app to market.Testing your business idea will allow you to proceed with confidence, knowing you have a viable business model in hand as you approach building your MVP. If you have an inkling of a startup idea but would like a helping hand along the way, sign up for our No-Code Founder’s Bootcamp. We’ve already helped over 250 startups this year alone and are eager to add you to our list of success stories.



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