There are roughly two kinds of people in the world; those who think too much before doing something and those who just don’t. At All! In the world of entrepreneurship, both of these people will suffer miserably.
If you belong to the first category, it is time you advance to Level 2 – The Validation of your Business Idea. Just do it, it doesn’t cost money but might bring you lots. And, god forbid, if you belong to or carry the potential to belong to the second category, say “Thank god, You saved me” and read this blog to understand if yours is a viable idea or not
Validating your business idea is easier than it sounds. It’s literally just about communication. If you are new to the entrepreneurship world or do not have formal education or experience in entrepreneurship, I suggest you read the previous blog Entrepreneurship from the very basic and then carry on from this point onward.
I will teach you how to validate if your business idea is worth pursuing or not in 3 simple and practical steps. No cliché, No bookish definitions, I promise. You might even have fun doing it.
1.Google it – As simple as it sounds, The moment you have this epiphany of a groundbreaking business idea, the first thing to do it to look it up online. Do a research worldwide. Check if somebody somewhere is already doing it. If not, you are up to a great start. Innovation or as we call it first-mover-advantage is the thing that will increase the brand value, potential to get investment, customer acquisition a hundred times easier. Suggested Reading : Zero to One by Peter Thiel
If you find somebody already pursuing the idea, relax. It’s not the end of the world. The market can definitely fit another player in it. You have to see what they are offering, how they are doing it, are there any shortcomings in their product, process, or the value that they create. Read the news that they’ve been mentioned in and the blogs they’ve written. See how they interact with their audiences. You have to think of ways to improve the existing product or service and add more value to it. You will have to be sure that there has to be a USP(Unique Selling Proposition) to your brand. How you do that will be decided in the next step.
2.Make a Business Model Canvas- This process will help you clear the details of your idea. This is literally 100% the most important step for your idea to be more than just an abstract. It will bring things to life and at the end of it you will be much more comfortable and inspired to move forward with your idea. Take as much time as you want. Read and research in between just fill the canvas will full attention and integrity. At this point, the things you mention here will mostly be assumptions but ensure that you make those logically.
See this 2 min video to get an overview of what a BMC is. Click here to download the canvas and click here to understand each segment even more clearly. (Just putting it out there, if you feel comfortable sharing your canvases with me, I would be happy to provide fresh perspectives to you)
3.Go out there and Communicate – Now that you know the what’s, the who’s and the how’s of your business idea, it is time to go out there and talk to real people about it, people you are going to serve. Pitch your idea to them directly, ask them would they like to buy such a product, does this product solve their problem or is there a way or address the problem in a better manner.
Your goal is to identify your client’s deepest source of pain and to develop a product idea that will remove it for them. Ask them about what alternative option have they been using until now. Ask them how much would they pay for a product like that and see if that’s a valid price.
But always always remember one thing Liking Your Idea is Not the Same as Buying Your Product. Be careful while interacting with your audience. Adopt a rational approach. Make sure that you follow up with questions like ‘why would you buy it?’ to ensure that they are not just being nice to you.
You also need to communicate with your key partners and people who will be involved in this business process in any manner. Again, give this process enough time, talk to a lot of people and ask them a lot of questions. Most likely they will be the early adopters and partners of your product/service so don’t shy away. Just go all in.
Once you are done interacting with your customers and key partners, you will have understood if this is something that is needed in the market or not and whether you can pursue this idea or not. If things have worked out well for you, go on to making a MVP(Minimum Viable Product) and take it to your customers again for feedback. Keep the feedback loop always active. It is a source of immense growth and opportunities. And that’s it. You will have validated your idea. See, I told you it was easy!
How to get Investment for your startup in Nepal?
The biggest problem entrepreneurs in Nepal face is while procuring funds.Most common question is, How can I get investment for my business? Who will help?
Read the interview of Sixit Bhatta, Co-founder and CEO, Tootle.