A simple business idea test: save time and money
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Do you know why so many business ideas haven’t worked out? It’s not because they were bad. It’s just that they need to be tested before you launch them. According to various estimates, between 80 and 90 per cent of start-ups eventually fold. Around 20 per cent don’t even make it through their first year. In this article, experts from PAnDiKubiz Cyprus discuss four questions that will help you understand whether your idea will be a hit.
No. 1. Usefulness. Does the idea solve a real problem?
The most common mistake is to create a product that only its creator likes. We think: ‘I could do with this, so everyone else will too.’ Usually, this isn’t the case. The key question is: what specific problem does your product or service solve? If people can get by just fine without your product, they’re unlikely to buy it.
You can check this without spending any money. First, talk to potential customers. Don’t ask, ‘Would you buy this?’ Out of politeness, many will say ‘yes’. It’s better to ask: how do they currently deal with this issue, what annoys them, and how much time or money they lose. If someone describes their problem in detail, it means it really does exist.
Experts at PAnDiKubiz consulting company suggest another approach: ask them to submit an enquiry, join a waiting list or place a pre-order. The idea is simple - sell first, then build.
No. 1. Usefulness. Does the idea solve a real problem?
The most common mistake is to create a product that only its creator likes. We think: ‘I could do with this, so everyone else will too.’ Usually, this isn’t the case. The key question is: what specific problem does your product or service solve? If people can get by just fine without your product, they’re unlikely to buy it.
You can check this without spending any money. First, talk to potential customers. Don’t ask, ‘Would you buy this?’ Out of politeness, many will say ‘yes’. It’s better to ask: how do they currently deal with this issue, what annoys them, and how much time or money they lose. If someone describes their problem in detail, it means it really does exist.
Experts at PAnDiKubiz consulting company suggest another approach: ask them to submit an enquiry, join a waiting list or place a pre-order. The idea is simple - sell first, then build.
No. 2. Price. How much are people willing to pay?
The price a buyer is willing to pay indicates how valuable they consider your product to be. You may attract a lot of interested parties, but if interest wanes once the price is revealed, it means the product isn’t really in demand. Or it’s too expensive.
However, the experts at PAnDiKubiz Cyprus advise against setting the price too low just to secure those first few sales. Otherwise, you’ll get a false impression of demand. If people say ‘it’s expensive’, perhaps they simply don’t understand what they’re paying for. But if, even after you’ve explained the value, they’re still not prepared to buy, then it’s time to rethink your business model.
The price a buyer is willing to pay indicates how valuable they consider your product to be. You may attract a lot of interested parties, but if interest wanes once the price is revealed, it means the product isn’t really in demand. Or it’s too expensive.
However, the experts at PAnDiKubiz Cyprus advise against setting the price too low just to secure those first few sales. Otherwise, you’ll get a false impression of demand. If people say ‘it’s expensive’, perhaps they simply don’t understand what they’re paying for. But if, even after you’ve explained the value, they’re still not prepared to buy, then it’s time to rethink your business model.
No. 3. Expenses. Will you be able to make a profit, rather than just working?
Sometimes an entrepreneur is delighted with their first orders, only to realise a few months later that their money is running out. More often than not, the reason is that expenses have been calculated incorrectly, according to the experts at PAnDiKubiz. It is important to take into account more than just the cost of production. There’s also packaging, delivery, customer service, commissions, advertising, returns, taxes and unexpected costs.
It’s therefore useful to plan for several scenarios. What if raw materials become more expensive? What if production takes longer? What if some customers ask for a refund? Such calculations help you identify weak points before launch.
No. 4. Implementation. Will you even be able to launch your idea?
Even a good product can fail if it is too complicated to produce. A good way to reduce the risk is to launch an MVP (Minimum Viable Product). This is the simplest version of the product, which allows you to test demand without a large investment. Start-ups that begin with an MVP are 60–70 per cent more likely to succeed. The MVP approach allows you to gather feedback and improve the product before you start scaling it up.
Testing your idea is essential for identifying weaknesses before making any significant investments, as emphasised by PAnDiKubiz Cyprus. It is far cheaper to adjust your direction at the outset than to realise several months down the line that you have invested time, effort and money in a product for which there is no demand. That is precisely why these four simple questions will help you save money, time, resources and the motivation to develop your own project.
Sometimes an entrepreneur is delighted with their first orders, only to realise a few months later that their money is running out. More often than not, the reason is that expenses have been calculated incorrectly, according to the experts at PAnDiKubiz. It is important to take into account more than just the cost of production. There’s also packaging, delivery, customer service, commissions, advertising, returns, taxes and unexpected costs.
It’s therefore useful to plan for several scenarios. What if raw materials become more expensive? What if production takes longer? What if some customers ask for a refund? Such calculations help you identify weak points before launch.
No. 4. Implementation. Will you even be able to launch your idea?
Even a good product can fail if it is too complicated to produce. A good way to reduce the risk is to launch an MVP (Minimum Viable Product). This is the simplest version of the product, which allows you to test demand without a large investment. Start-ups that begin with an MVP are 60–70 per cent more likely to succeed. The MVP approach allows you to gather feedback and improve the product before you start scaling it up.
Testing your idea is essential for identifying weaknesses before making any significant investments, as emphasised by PAnDiKubiz Cyprus. It is far cheaper to adjust your direction at the outset than to realise several months down the line that you have invested time, effort and money in a product for which there is no demand. That is precisely why these four simple questions will help you save money, time, resources and the motivation to develop your own project.
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