Many people don’t realise that quite a large percentage of business ideas fail in the first year and the main cause for this is lack of validation. Although validation isn’t a guarantee of success and is definitely not an easy process, it is necessary in order to establish if there is actually a need or demand for your product or service within your target market. Will people actually buy your product or service? Will it be as profitable as you anticipate? Before you spend time and money on your new idea, it is important to validate at these early stages to avoid disappointment.
During the validation stage, you will need to put ideas to the test to check feasibility and scalability. By conducting market research and running several predesigned tests, you’ll be in a better position to filter out any unsuitable ideas. You will need to be ruthlessly critical and bear in mind that ultimately, your aim is to build confidence, trust, and to convince the customers that you can deliver the product or service they are looking for. However, it’s not only the customer that you need to convince and build confidence with. You will also need to consider investors, crowdfunders, and banks, in case you are looking for funding to help with your startup.
In the initial stages, it would be wise to check if your idea has been done before, if it still exists and if it’s successful. If so, is there a market for another product or service with similar features? If not, what went wrong? What makes your product better? How would you succeed where others have failed? Learn from other people’s mistakes and improve upon them. Use your skills and knowhow to the fullest whenever possible. In areas where you are less confident, delegate and outsource to those who have the relevant expertise.
Once you have gone through this initial assessment, you’ll be ready to take the first tentative steps to validating your business idea and possibly turning it into reality.