An idea is struck as a cyclone in your head and you have a feeling, this is going to be the “next big thing” in the market. Saving a business idea with series of sticky notes on your desktop doesn’t get you anywhere. The real quest starts when you ask yourself whether this business idea works or not.
For a beginner stage entrepreneur immediate question should be “How do I validate my business idea?”
To rescue such beginner stage Entrepreneurs, we have come up with some simple steps, which can help to validate your business idea.
1. Surf Your Idea
The first step in validating your business idea doesn’t take much of your time. Take your mobile out browse the idea, go deep into the internet to check whether your idea exists in the market or not.
Remember, business ideas are always unique. Even though the idea already exists in the market, we come across different ways of executing the same in different ways. All are trying to find and fill the loopholes of an idea, to make it a success.
Don’t worry, even though your idea exists, all you need to ponder on few points like
· What are the problems with the existing product?
· How can you improve it?
· For whom you are designing the product?
· Will the potential customers accept the new improvised product?
· Finally, think whether you can earn money from it
2. Conduct Market Research
This is a crucial process for any entrepreneur to practice. Market Research will help entrepreneurs to cover all the essential information of business idea. It will give you insights, advantages and disadvantages like
· Competition Analysis
· Potential partners
· Current market trends
· Market demand and segmentation
· Spending traits of your customers
· Vast opportunities within your idea
· Identification of potential problems
The immediate cause for the entrepreneurs to take up market research step is to understand business issues and finally to have an impactful economic growth through the business idea.
Drop the attitude of conquering the market with your idea. Sit back and discuss your business idea with the most trusted people in your circle.
· Approach those who can bluntly tell you the truth about your idea.
· Listen what they feel and have to say about your idea.
· Make it a two-way communication by posing them different questions about your idea.
· Get ready to handle the negative feedback
· Make a list of positive and negative feedback to follow the pattern of improvement.
4. Join Facebook and LinkedIn groups
Wondering how these social networks can help you validate your business idea?
Post a query and spot on!
You’ll get a lot of suggestions or solutions in the form of comments. Social media is a revolutionary platform in the present era, on which
· You can join all relevant groups to post about your business idea on Facebook and LinkedIn.
· Groups can give you an idea about your targeted and potential audience.
· Communities of entrepreneurs on Facebook and LinkedIn can find help during this phase of seeking feedback.
· Helps you to keep an eye on changing market trends.
5. Proof of Concept
After identifying your potential customers, it is a wise move to show a prototype of your product.
· A brief about service/product advantage can help them to give your product/service a chance.
· You can encounter a probability of making a better price strategy
· You may detect some problem and have a chance to rectify it
· Come up with a clear picture of profitable niche
6. Business Plan
A business plan is a foundation for your business. It is a description format which tells what you plan to do, how you do. Make sure you cover
· Industry description
· Company description
· Product description
· Business concept
A well-drafted business plan helps to make a good first impression on your investors to raise more funds than you require.
7. Build a Strategy for Competitive Advantage
A competitive advantage strategy helps you to stand out from the crowd by providing a unique value to your audience. Your strategy should include
· Sales & margins
· Acquiring of loyal customers
· Retaining customers
· Cost structure of your product/service
· A strong personal brand
· Good customer relationship
Keep a look on economic shifts, changing market trends to further development of your business.
8. Cost to launch your business
Once done with gaining and tweaking your feedback about your business idea, now set a capital and think how to gain it. There are plenty of ways you can finance your business idea. Few are listed
· Fund your business idea by yourself
· Look out for loans
· Look for partners
· Approach Angel Investors
· Venture capitalists
9. Register Your Business
Legalise your business, it is an essential step to carry out your service/products to your customers. Consider it as a mandatory step, few key elements can help to outcast legal issues.
· Get a grip on all the laws of the country in which the business is going to be established
· Documentation of the required documents
· Get copyrights, trademarks or patents
· Business Structure and name
· License and permits
10. Build your Identity & stay Flexible
Instead of deep diving into the market, it is calculating move to start small initially. Then scale your business after creating a brand identity and building a strong team. Manage your product by hiring specialists and stay flexible to acquire broader targeted markets.
Validating a business idea is a repetitive process with steps like idea, validation, testing, modified idea, validation, testing and repeat. In this present startup-world, ideas are plentiful but implementing, scaling and maintaining is vital.
Drop us a mail to reach@earlypad to validate your business idea and get your Market Research done.