Test your business idea

Every day new business ideas are born. But not everybody dares to take a step to implement their startup idea. After all, starting a business is always risky, it scares a lot of people. You can lose both time and money by doing a lot of hard work. However, there are several simple stages to test the viability of your idea. It will also take time and effort, but much less than if you invested in a raw product.

Put your ideas for business on paper.

Make a short and simple plan by answering the following questions:

• Make a description of your business or product in one sentence. It should not be a slogan or a mission. Simply, as if you had briefly explained to your grandmother where to invest money and how to start your business.
• Describe the problem or need of your potential customers, which you solve with your product.
• How your product or business solves this problem or need
• Identify your target audience
• Think about your competitors. How will your product differ from similar products on the market?
• How do you plan to sell your product?
• What kind of sales strategy will you have?
• List the main expense items and revenue streams of your business

Create a list of questions

What you have set out on paper are just your assumptions. Now you need to use them to make a list of questions that will help you understand if your guess is true. The easiest way to make this list is to convert your statements from the first point into questions.

• Does my target audience have a need or problem that I can solve?
• Who else might have such a problem/need?
• Do my potential customers agree that my solution is right for them and will satisfy them?
• Will my CA be able to shop through the sales channels I have planned?
• How much money will potential customers want to spend on my solution?

"Field research

Now the most difficult and for many uncomfortable stage is to talk to potential customers.

To understand how to start a business and achieve a successful implementation of your idea, you really need to talk to as many potential clients as possible. And you don't need to be afraid that they will tell you that they do not like your idea. This is very important, because it's the only way to know if your business idea is good before you start investing in implementation. How to talk to customers and find out if your project is really a good business idea is described in Rob Fitzpatrick's book "Ask Mom".

Make a decision

If you get positive feedback on your questions, it means that your idea is ready to start a business.

What to do if you get mixed answers? Maybe your CA does not have the problems you propose to solve, or clients are not ready to pay so much money to solve it. Then you need to go back to the first stage, think about another CA, or reformulate the problem or its solution. Start the process all over again.

If you have a great business idea, don't be afraid to test it. The last thing you want to do is to spend time and money on the idea, but not be sure that your product is needed and that people will pay for it.