Test Your Business Idea

testing your business idea

One of the first steps we recommend all new clients is to take time to test your business idea. You might have an amazing idea / concept you have been juggling around in your thoughts, it would be prudent to first test the idea out. It might seem to look better on paper, or perhaps might need more work. Starting a business is a daunting and exciting prospect. With a great idea, you might feel a rush to start on it immediately.

Testing whether your idea is viable may save you from investing a large capital on an already lost cause. In case it is sound, test it anyway to discover any weaknesses that could be worked on and challenges to be ready for.

Getting some initial concrete findings would also help in pitching to investors. It’s easier to attract people, such as good employees, when they know your business is sound. It will also be a great first step to adjusting your marketing, which will ultimately decide the flow of the business.

3 Steps to Test Your Business Idea

1. Feasibility Study of your Business Idea

Determine the potential of your business idea based on the market. Is it profitable enough to break even given the number of customers you get?

Consider how large the potential market and look at your competitors and their market. Perhaps you can tweak your own strategy to cater a niche that your competitors miss.

What you should have after your feasibility study:
  • Calculate your expenses in keeping your business up and running
  • Know your target market
  • Know your competitors and how much of the market they already cover
  • Understand how you can set yourself apart from your competition
  • Consider the price range of your products/services so that you can remain profitable given the number of customers per week or month

Make sure you are always looking at the potential of market growth. It is generally not a good idea to simply be involved with trends that would only be good for a few months and eventually burn out. Use tools such as Google Trends to find out how much different products or services get attention at different times.

2. Sense Check for your Products and/or Services

Simply knowing the potential audience does not necessarily mean your business idea will sell. Having a cheaper product does not necessarily mean potential customers will gravitate towards your product – they might prefer higher priced goods because they have better quality or are more luxurious.

Research the buying trends of your market, using pre-existing online tools, such as market reports. Companies such as MarketResearch and Nielsen provide such services.

Additionally, you might try any of the following:
  • Surveys and polls. Many social media sites provide great platforms for hosting polls and surveys, which can provide useful data on your audience interests.
  • Look at your competition. Check how people react to their products and services with reviews and testimonials.
  • Just talk. Engaging people, especially existing customers about your business can provide useful insights.

3. Try Selling It

Before going into full production, test the waters by selling through online marketplaces such as Facebook groups. You might even find some customers immediately, but you may need to invest in social media marketing.

Selling on other platforms such as eBay, Etsy or Amazon can also give you an idea for the demand for your product or service.

Finally, you can try creating landing pages for your products, especially if they are not ready yet. People may sign up if they are interested in your business idea.

We offer many Business Development services to help you get your business from Concept to Start UP. Learn more HERE.

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