Many budding entrepreneurs has great business ideas. But how would you know that if those ideas are worth pursuing? Coming up with business ideas is very easy, but coming up with the good business idea? That’s more challenging. Yes, perhaps an ever bigger challenge is to differentiate between good business ideas and not so good one.
Before you invest your precious time and money to build the whole product you should strongly consider building a smaller version or a prototype of it and test it in the market.
It Solves a Real Problem
If there is a problem that affects you, your friends, family, co-workers etc. then chances are high that it might affect other people you don’t know as well. You can talk with the customer and take their feedback to get understanding more about the problems that they face. If people have a problem with something, they will pay for a solution if it makes their life easier.
For those who are unafraid of putting their ideas out there for other to judge or opinion, there is an easy way to test your business idea – run a crowd-funding campaign. If you can raise money on Kickstarter or Indiegogo, then you know there is a demand for the product or service that you try to sell from your startup. If you run you business idea through crowdfunding and it doesn’t work then it doesn’t mean you should give up, but you may want to tweak it little things and reproach prospective customer and investor.
Minimum Viable Product (MVP)
MVP provides an opportunity to test hypotheses before building a full product. The main idea behind building MVP is to find out whether other people find it worth and pay for it. MVP is a prototype which can be shown to potential clients, investors, and stakeholders. The complexity of the MVP depends on the type of the product or services. MVP can range from creating a landing page & run Ad-Words on early prototypes.
The sustainability of the business idea depends on various factors including demand and supply. If your product or services offer something better than existing solutions, it will surely go long way. Test the water before you take your first step towheads the business world to prevent failure. Check & check again how scalable your product/services is and determine whether or not a business idea can yield better returns.
Know your Customers
It is really important to know about your potential customers before you pitch them your product or services. You can do a brief survey regarding preference and habit of your customer through crafting questioner. Try to ask an open-ended question to bring out the issue and challenges they face.
Test your Business Idea
You need to test your business idea with potential customers. If your target sample is saying that your business idea is fantastic and they are asking that where they can acquire it, you know that you’ve built the thing that people need. You can also offer a free trial for your product or services to beta test your product and gather important feedback before fully launching it.
You can design a separate landing page for your startup to validate the business idea. Through landing page you can quickly communicate your offering, it’s benefits and Call To Action.
Landing pages are where you can hit the sweet spot of your potential customer. If you can convince the visitor with the landing page to acquire your product then he is likely to give it a try.
Make sure you have set up analytics of on the landing page to analyze the conversion and user behavior on the page.
Gaurav Kanabar is the Director of Alphanso Tech, a globally acknowledge IT consulting company providing services in the arena of the iBeacon App Development . With immense support from the adroit team, Alphanso Tech has been serving a huge client base worldwide.