Why Test Business Ideas before investing resources?
Do you have an idea and feel it is “Eureka” moment? The excitement need to be tempered as only market acceptance is the decider. It is illusion to think that idea is perfect the way it is, but it's wise to test it out before spending a lot of time and money in developing a business or product for which there's no market
"After I've gone through the process of writing down a bunch of ideas, I don't like to rush into building a business plan or recruiting the team," Isenberg said. "I like to wait a few weeks, [to] see which ideas really stick with me
The New Business Road Test: What entrepreneurs and executives should do before launching a lean start-up - John Mullins
The New Business Road Test: What entrepreneurs and executives should do before launching a lean start-up (- John Mullins
Most new businesses
fail. Why? Because all business is not created equal. No matter how talented
you are, no matter how hard you work, no matter how much capital you have, if
you haven’t given your idea a rigorous, critical examination before starting
out, you’re on the fast-track to disaster.
Whether you’re an entrepreneur starting your own business or an executive developing a new product or service for your company, before you even think about writing a business plan, make sure you’ve checked out the fundamentals. Give your new business a fighting chance.
You may have developed a business idea; a process/product which you feel is superior to other options available in the market. It is all right to have business ideas. How and where do you test them?
Every problem has a solution; in fact, many solutions. What works for one person in one situation may not work for others in different situations, If you are hell bent on marketing your idea regardless of the marked needs ,I call this honest wrong belief .It can cause roadblocks in your journey.
1.Swimming in Shallow Waters
You have an idea which you want to turn into a money spinning proposition. How to minimize your risks before you think of investing in a big way? This is where the concept of swimming in shallow waters comes in. As everybody knows, when you start learning to swim you begin at the shallow end of the pool, not at the deep end. Likewise test your idea with a prototype or sell your services to a few customers in your network. The insight you get from the feedback can be very valuable.
The swimming in shallow water approach is one of the ways to minimize your investment at the start up stage. Sometimes based on the feedback or experience of the customers you may change the features, add new features or completely revamp. You would also have created brand ambassadors for your business. You will be surprised to know that quite a few starts up entrepreneurs I mentored did not get testimonials from their first few customers.
2.Web Presence: - A powerful tool
Needless to say in an era of digital world, web presence is absolutely necessary. Do you want to travel? You surf the net for the best possible flights, hotel deals, destinations etc. All you need to know, almost all information is available at the click of a button.
You can expand your business and have customers all over the world just by being on the net. Your physical presence in multiple locations is not necessary.
You can create a dialogue with customers through your web pages and the exploding social media..
Franchising- A risk minimizing strategy
And for people who want to plunge into business but with minimum risk, there is always the franchising way.
The idea has been tested and the product or service has become a brand. Franchising is also a rapidly growing business.
Ideas are dime a dozen. The road testing of the idea is required before investing and also is one of the ways to minimise the risk.
Slowing down and altering your course rather than bulldozing your way towards a goal, a process which he calls zigging and zagging, not only helps achieve business success but ensures if the idea fails, it fails "efficiently."-- Richard Christensen, entrepreneur and author of The Zigzag Principle