Everyone is excited about starting their own business. Countless people try their luck every year, but most of the business failed due to a lack of proper planning.
Approximately 45% of startups struggle because they didn’t reach their target market. To run a startup successfully, you need to validate your idea systematically for making your product successful in the market.
There are some essential steps to follow for validating any startup idea –
Market Validation of the Product
Market validation is comprised of surveys and feedback from your target market. It is a process to know about the interest of your target market, whether your product is market fit or not.
Most of the people make a mistake that they keep their startup idea with themselves. Sharing your idea with the right people and taking their views. it is the initial step of validating your startup idea.
“Tell anyone and everyone your idea without fear they are going to steal it.“ —Aaron Patzer, founder of mint.
You can take quality advice from those who are already in that business and ask them directly specific questions and follow successful entrepreneurs on LinkedIn who have accurate information about a specific industry. You can collect more quality information and advice if you might get a chance to meet any of them.
Analyze the competition:
The first thing you should always keep in mind is analyzing your competition. you should analyze their business and find some areas they are lacking as you can focus on those areas.
For example, if you are planning to launch an operating system in the market (and surely there is a huge market for this) you know that windows is already dominating the market. But you think, on another hand, Mac and Linux are also doing very well.
So it is hard to find space for your product, and even if you made it in the market, you can’t compete with the level of resources and depth in the market that these other company’s have.
It is important to know your competitors very well. By analyzing them, you will learn about their mistakes and how they overcame as well as the strategies they followed for success. You can apply it to your startup.
Evaluate Whether Your Idea Is Profitable:
You should research whether your product is profitable or not because you can’t invest your own money all the time your business should generate revenue for you to sustain your business.
It does not make sense if you are about to start a business, and you don’t know whether it has the potential for profitability or not.
If you are going to launch your startup, you need proper planning that will make your business profitable.
Prepare Your Product Concept:
The purpose of creating a product concept is to finding key questions for testing in the market. These questions could relatable to the problems that might occur to your target market.
- Who is your customer: There is a specific market for every business, so you have to make sure which one you are going to target and how big the market is. If your product is for a particular market, so what is your title for the buyer.
- Why are you in the market: You should be aware of your target customer’s problems. When you will get to know your customer’s problem you will be able to validate and solve them.
- How your product will help: You can elaborate to customers how it will help them to resolve their problems. You can represent a prototype to your customer, and by their feedback, you can improve your product further.
- Key features: Your product should provide plenty of benefits to your customers as it will make their life easy and better. Like the value of money and time saving etc.
Interview With People:
You can hardly get people for free surveys because people don’t want to waste there time on any kind of free surveys.
But this is a very crucial part to validate your startup idea it helps you understand customer’s needs and problems, and it will give you some valuable insight.
You can start with a list of questions to learn more information and make sure you can visit them or secure their precious 10 minutes over a video call.
This natural face to face interview is very essential to see their reaction. Some keys you should remember while interviewing any customer-
- Thank them for their valuable time and tell them how they will help you to make the best product for customers.
- Explain to them how your product is different from others that are already in the market and how you are going to tackle those issues.
- Explain to them about your product and the nature of your business.
- You should explain to them all versions of your product and ask them for their thoughts. Observe their body language and their reactions and their feelings and thinking about your startup Idea.
- There is a difference between liking and buying a product. People are only buying the product when that is needed by them. So if someone likes your product asks them if they want to buy that kind of product or not
Review And Decide:
Eventually, you have to review all feedbacks and decide what work would be best for your potential clients and how can you change or modify your product for your targeted market.
Lean market validation helps you to get enough information and data to make a decision. This concept helps a startup to validate and succeed.
Validate With MVP (Minimum Viable Product )
The MVP(Minimum Viable Product) is a technique to create or develop a product with sufficient features for early customers. The final product(having all features) is only designed by considering the feedback of early customers (users of the initial product). It is a prototype version of your product.
- It has enough value for people to buy and use it initially.
- Early customers can have enough future benefits.
- MVP provides a future guide to develop your product for future development.
Idea Validation Landing Page
It is an easy way to validate your startup idea. Because building a prototype takes less time and effort than creating a complete product. You can create multiple prototypes for better future development using customer reviews and basic market research.
Some important features you should keep in mind while creating a prototype –
Simple and Consistent with design:
The prototype should look professional. Means, it has to look like you already have established business. You have to make sure about design and image quality as you are going to sell your MVP. A prototype with user-friendly functionality and simple yet clean designed to attract your customer easily than a prototype with complex designing and functionality. The design and functionality of a product are important for brand building, improving conversions and adding legitimacy.
Product Description:
As you are writing a copy to describe the product, you need to address users’ problems and the solution you are providing as well as your product benefits or services.
A/B testing:
A/B testing is a very important feature during validation. Because it allows users to compare and vote between two or many products. This statistical analysis determines which one is best for a conversion goal. It will give a better result to
Image Credit: Adobe Stock
