Idea Validation- Why is it needed?
Looking for a place to validate your Idea. Get an insight into all the steps before you go all out with it.
If you are a startup and you have a breath-taking idea that can change the Real-world. The real world where everything is gonna cost you money and time and things will have legal aspects. This is surely gonna challenge you. So are you still thinking about the same Idea which you validated inside your mind? Or are you out of the imaginary world where you pioneered all the people, back into the real world which will give you feedback? The same feedback can act as a game-changer for your start-up.
So, what is Idea Validation?
The dictionary defines it as a process of testing and validating your Idea before launching it out in a public market or as a service. It’s a series of simple steps you need to follow to know how the Idea or Product which you have is really valuable and how customers are gonna react to it.
How will this help me?
Well, this process is going to save you a ton of time and money. Also, it will help to know how it will perform when you expose it to the market. This can make you realize and rectify at an early stage if you are about to make, invest time and capital into something that people won’t buy. Also at an early stage, you can recognize from these processes that will your start-up scale or not or at what pace will it scale. Don’t make the mistake of skipping it out and working on something non-usable.
Why will you need to Validate Your Idea?
Let’s jump into the situation where, how, and why Idea Validation becomes an essential component before you begin….
1. Is the product needed?
Here is one thing why Idea Validation is prioritized. When you are starting a new business nothing can be more discouraging than the fact that you created something people rejected or can live without it. When you do so you are just wasting the most essential resource of your start-up and that is time. This is one of the stupidest mistakes that take down the entire enterprise.
2. Are you at the right time?
This is when you start too early or late. When you solve a problem with your Idea are you doing it on the right time like when you do something which has a better pre-existent alternative why will people change towards your product until and unless there is a target audience which relies on your product or makes the work of that pre-existing task simpler and easier?
Take the example of Microsoft’s SPOT watch which was launched way before any modern-day smartwatches, back in 2004. At that time it used the FM waves which were a cutting edge technology of that time which can show Messages, Weather Analysis, Browse NEWS, check scores, and many more which again was a stand-alone invention without requiring to connect with any other device. But it failed miserably because at that time very few people owned network devices that had this connectivity and most people could have watched this on their TV screens and newspapers. So without a control device in this case modern-day smartphones they failed.
This is one of the many examples of failures due to the Idea being too early like Skype and Dropbox and too late like Blackberry. The Ideas that are successful today came at the right time like Zoom and Google Drive.
3. Understanding your Competition.
The competition you are going to face is to check the introduction of your Start-up Idea. The Idea might be brilliant but is it doing enough to drive people from the product that is already in the market. This is important as this is the point where your business will start to scale up. Both production and reach wise. So, it becomes essential to look up at the competitors. The most important points to be ticked will be
1. What is the different thing you are providing than your competitor?
2. Is your product offers a better price?
3. Is your product adding a certain value to the user Experience than what your competitor is providing?
How Do you Do it?
Well, after this Idea Validation sounds pretty much important. But, are you going to perform it? Don’t worry we got your back. Here are some simple steps to execute to be able to perform Idea Validation.
- Brainstorm your Idea in your Mind.
The Brainstorming part is important as it will bring clarity and confidence to your idea. You have to think about the features that your product will have, also that ideas must be feasible and legal. You will also need to think about how you will pitch your Idea before the Customers and Potential Investors. Also, don’t make it too complex that it will make your clients confused about what the product will deliver.
This the primary steps which will make you clear about the final goal you want to achieve with your Start-up Idea. Having a tagline, logo, or some Vision and Mission statements will prove effective and keep you on the right track.
2. Does Your Idea Solve a Problem Worth Solving?
The most efficient way to do this step is to look around your surroundings and then solve a problem that you see exists in society. The thing is that many entrepreneurs apply the model of some successful start-ups and businesses out of their domain. Like they see the company like Google, Amazon, Airbnb and apply the same business models to other domains apart from which they are working. The main issue is their working model and the problems that they solve might not apply to these domains. That is when you solve something which people essentially won’t qualify as a problem.
Therefore start with a unique problem that addresses issues omnipresent in your life and people in your surroundings. This will allow you to think beyond society and will eliminate the pressure of competition. This may lead to the creation of a whole new concept that will open a new market for it. Most Social Start-ups are aimed at this concept.
3. Do proper and systematic Market Research.
In this step, you have to assert yourself and your team to work toward the market you will be serving too. This step is most important as it will decide your monetization and affect your revenue model. This will also impact on how fast and to what extent your start-up will scale too. And also will give your insight into the future portfolios where you might want to extend. Firms who start without a proper Market Research have the highest probability of Failing.
Market Research is a lengthy process but it’s worth the time you invest in it. It is aimed at narrowing down your market to the target audience which will buy your product. You have to take Income Source, product pricing, to what people it will impact, which age group will purchase it, does it have enough features to be sold at this point, how am I earning profit from it, and many more. After the results, you get your Idea will be ready to know how it will perform.
4. Start some initial sales.
Arguably the best way to see the performance of your Idea is to start by making some initial sales. There is nothing much better that people exchange cash for your product. Until and unless you receive payment all the steps will give you a rough idea but no concrete evidence. All your friends and family reviews, surveys, and feedback will point towards a direction, but real validations happen when people start paying for your product. This will help you as well as your customers develop trust and genuineness towards your product.
This is where you get to know where your product is lacking at, what features to add, and what flaws are there in the system.
5. Try Meeting your Consumers Personally.
When you do talk to people who will buy what you are selling, you get a fruitful response. The Important part of the start-up is when you take an interview or talk with your potential customers personally this will not only increase their interest but also you will get the insight of what they are expecting. The process will be simple, tell them you are not talking to them because you want to sell them something. Instead, tell them the product is not yet ready, and you want their opinion on how it should work, this will let the customer think that he is also the part of your project and you will get some honest insights. Not only that this will influence them into thinking that will their response affect your business. People love knowing that their opinion matters.
Also, one way might be to go to some local market and give a sample of your product, this will help you get a direct product performance review. These will also let you know that are people ready to exchange money for your product and are they suggesting any new additions. One unique thing you can experience in this process is to notice their initial reaction to the product, what are their expressions, body language, and the price they want to pitch the bargain. These are very important feedbacks that will help you at the time you are investing in your product.
6. Review, Redesign, and Repeat.
One last step in the process is to after completion of all the above processes sit down, note all the points, and rethink. Redo the calculations you get from the market research. Apply and try adding the features you get from feedback. Rethink about the revenue model. And finally, after all these steps, go through the process again. This time process will be much quicker than the previous time. More Optimistic response will be received. And your Idea is finally validated.
After all the time, energy, and money you invested in Idea Validation. You will see smooth working when you commercially launch your product. This will help you save time to manage many important things at the next stage of your start-up like management of Human resources, Working Capital, Bidding to investors and many more. This will prevent your start-up from chaos. Now, you are ready to introduce your product. Be confident and charismatic. The world needs you’re Idea go enlighten them.
Until next time…..
Au Revoir!
