You have done all the ground work, found a prefect business idea, a name and you have conceptualized your product or service. You are now ready for the next step, and that is validation of your idea. This is a very important step and it will determine how successful your business will be. If you do not implement this process you will not have any means of knowing if your business will actually be profitable, and will you have a solid market for your products or services. Not every single idea will be a good one, and not every will be a huge hit. This is exactly why idea validation is so important.
We are here to help you validate your business idea and to help you in understanding if it is worthwhile perusing. This is a highly important step which will tell you exactly if the idea is good and is it worth committing your time and energy to it. Not just that, when you are starting a business you will need money, material, equipment and more, this will save you the trouble, and you will know what to do next.
However, there are a few dos and don’ts, so here is the scoop:
Validating Your Idea the Wrong Way
Creating a prototype – raising money – building the team – validating the market
This is an example of a bad way to start off a business. Sure, it is very tempting to create a prototype and show it to family and friends, but you have to think as an entrepreneur. You don’t want to spend resources and time on something that might work and might not. As you can tell, the idea validation is the last step in this example which is totally wrong. The idea validation should be first thing on your mind, this is where everything starts.
Validating Your Idea the Right Way
Idea validation – creating a prototype – building a team – raising funds
This is an example of validating your idea the right way. You should always validate your idea first and then move on to the next steps. Like crating a prototype, building a team and at the end raising the funds to start the business.
How Will You Validate Your Business Idea
This sound like a lot of preparation and a lot of work, but it does not have to be that way. Here are a few tips to get you started.
Search for Top Sellers & Existing Categories
Go online and do a simple search for some top sellers within your industry. By doing this you will get an idea if your business is popular among customers, what customers want and what they buy. You can also check out the review section and see what services or products harvest the best reviews. This is one way of spying on your competition.
Use Market Tools to Define the Size of Your Market
Nowadays you can find so many useful online tools and apps to help you run a business. You can use some of those tools to identify your market size, demand and supply. We have a large Resources section portraying some of the best tools you can use to enhance your business, including web hosting, customer support, development, legal services and so much more. We also have landing page tools to help you out in your endeavor as well as survey tools. This will help you identify your market.
Demand and Supply – How to Deal With
To be successful you need to have a service or a product that solves a problem and fills in certain need. If you choose to be a part of a business that has a high supply of what you are offering then you will be facing with a vast competition. However, if there is a high demand out there of the products or services you are offering then you will harvest great success. To be able to discover the demand of what you are offering you can always turn to us and our landing page resource. This will help you generate leads for your business which at the end will serve as a validation tool. You will know exactly if your idea is something to expand on or not.
Feedback and How to Obtain Some
This is something we already touched upon briefly. You can ask your family members and friends to ask for their opinion, feedback and what to correct, what to add and so on. You will discover the ultimate validation when you have a person or a business that is willing to purchase your product or service. If you get this in an early stage, you are all set. Next stop – funding your business the right way.