5 proven methods to verify your business idea before running

Business ideas are a dime dozen. Some concepts of a million dollars, others have been convicted from the beginning. Later, the reality for 35% of startups: fails because there is no need for market. But it doesn’t have to be your story.

Verification of your business idea through methods such as market research and beta testing before running will help you have expensive mistakes and build something people now want.

Here are several low -cost, experts of recall ways to stress your concept before investing serious money.

How to verify your business idea before running

Follow these steps before jumping head to start your business and make sure you have a viable business idea.

1. Make sure that the problem you want to solve

Many entrepreneurs fall in love with the solution before verifying the problem.

Carter Caldwell, director of Penn Medicine program program in Penn Penn Center for Innovation, says that entrepreneurs often fall in love with their own idea, then receive and spend money on a “solution to a non -existent problem”.

Before investing any time or money in your business idea, spend time examining the problem you want to solve and make sure it is the one that people want to fix.

“Many founders forget to verify and understand the problem they solve, and Intsa … Dive into a set of functions that could be best worked,” said Sean Mulligan, Manager of The Idea Village, a non -profit organization that helps founders starting with Gulf Coast StarTru. “If you get too much in front of you without fully understanding that the landscape, you are vulnerable by having a more dramatic pivot in the future.”

This basic but fundamental validation step costs nothing but your time to carry out research, whether it goes as Reddit and Community forums or finding renowned studies about the market you want to enter.

2. Talk to your target customers

Although friends and family can be a great source of support for your new business, they may not know the market well enough to know if your business idea is good. The most effective way to verify your idea is to talk to your target customers, Caldwell said.

“This process, which includes direct conversations, conference presentations, network networks, and in some cases focusing groups, will bring tremendous value and form a product to a point where it is a need,” he added.

Mulligan recommended using Open-Endéd questions to evoke personal stories and feared real pain points.

“(Founders) can start verifying problem space and some hypotheses that have for their solutions (through interviews),” Mulligan said.

Target interviews with customers can often be conductive at no cost, but some founders decide to offer coffee or a small gift card as a manifestation of their interviewees.

3. Development of prototype to support pre -sale

After you have conducted initial conversations with potential customers, it is the next step to get some of them to commit to be your first customers.

“Sell before you build,” said Nate Nordstrom, which has undergone a large prototyping process and feedback when building its platform, Easy Board. “Make it cheap for the first adoptive, but get your cash flow in the right direction.”

Nordstrom warned that he had spent a lot of time and money by developing your minimal viable product (MVP) and incorporated a simple, early version of your offer to encourage pre -sale. This may be a video manual of the product or service you want to develop on a physical prototype, or a demo web that your target customer can communicate with. Either way, it is important to get early feedback on your MVP to help shape the final product.

“The best way to have a development trap, something for an extension period without a market is to have regular interactions … with your customers,” said Shalaabh Gupta, MD, founder and CEO of Unicycive. “How to continue developing the product … Evaluate how each version resonates with your potential customers.”

Platforms such as Gumroad or Kickstarter offer an effective way to receive pre -orders or registration for warnings. The cost varies depending on what your product is physical or digital as well as the specific platform you use. Kickstarter, for the exam, charges 5% more additional fees from its payment processor for successfully funded projects.

4. Study the competition and reveal the gaps

If you are entering a crowded market, distinguishing your idea is crucial for long -term success. See the competitive offer and reviews of customers to identify the gaps and areas of consumer frustration. Use this knowledge to confirm that your offer can really excel in what is currently available.

“The more you see a consistent reaction in terms of need and what your product can offer, clearly that something you develop will have a demand,” Gupta said.

The costs associated with this method differ depending on how depth you want to get. You can explore the tools for social listening and content analysis for a relatively low monthly prescription fee, or you can hire an external consultant to build a thorough analysis of the competitor and identify your strengths and weaknesses, opportunities and fibers (SWOT) compared to.

5. Ask people who had previously had and understood the shortcomings in your strategy

While some business lessons can only learn their experience, advice from someone who is a girl can help you have expensive mistakes. Nordstrom recommended finding a mentor or a colleague of entrepreneur and asked them meaningful questions about their journey to success.

“Apple at least some of their advice,” he said. “The more you can learn from the others who left in front of you, the better you will be.”

In addition to mentoring, you can also develop online sources Business Education Programs and Entrepreneurs’ Experiences to bring any shortcomings to the launch of the proposed journey.

“Wharton, Harvard Business School and The Oourlorie have a drilling goods to find out potential failures in their own Go-to-Market strategy, such as distinguishing between facts and insurance,” Caldwell said.

When to switch from testing to startup

When moving these steps before starting, it may include feedback patterns, when it is time to move forward. You can set concrete scale to keep your decision, such as a number of waiting list registrations, pre -orders, or early user obligations. These milestones help ensure you don’t start the emptiness.

“If MVP is ready and your customers are willing to pay for it, you can consider starting,” Gupta said.

Nordstrom said that thesesstones can confirm the fit on the product market, but “until you have a clear way to the scale” where each dollar equals three or more dollars, “you are not ready to invest more.”

Once you are sure of this way to the scale, it is time to move – and do it quickly. Nordstrom recommended launching as quickly as possible (ideally in less than six months), you have several prepaid premature adoptions.

“Continue to the iteration with their feedback when you are talking about what you are building with a community of buyers you are trying to achieve,” he added.

Bottom line

Verification of your business idea soon can save you countless hours and financial headaches in the long run – and does not require a ton of planning or resources. By gathering feedback and improving your offer based on the real world, you can give your business the best possible chance of success while starting.