Testing You Business Idea
Entrepreneurs are creative and innovative. Ideas are always appearing in the minds of entrepreneurs. As you are developing your business there will be other factors you must keep in mind as you test out your business idea. The key is to “test it out” before you start raising capital, etc. Your business idea needs to be filtered through these three funnels.
Does this idea provide a solution to a problem? Your idea needs to solve a problem. It can be an improvement on an existing idea. This is what Uber and Lyft did. Instead of having to call a taxi or flag a one like in NYC, with Uber and Lyft you can see what cars are available, pre-pay for the ride, have an accurate time of arrival, and not spend time figuring the cost. For some people these companies provide great satisfaction. What will your idea solve? Will people pay for it?
How will I acquire customers? Where will they come from? How will you reach them? How is the competition acquiring them? Start small with targeting a small group of potential clients to test out your idea. Get their feedback before you move forward.
What system(s) do I need to roll this idea out? I can't stress this enough: make it easy for clients to do business with you! The system must be so practical that when a client buys your product or service it will be simple for them to do business with you.
Put your idea through these three tests. This will save you time and money down the road.
Sanford Ashley is the founder of VC Direct, a digital media outlet for venture capitalists, startups, and sports entities with a focus on public relations, media and business connecting. He is also an e-commerce sales trainer and has spent over ten years in media marketing, and two decades in sales and marketing.
Sanford can be reached at email@example.com