How to test a business idea
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Create a UTP (Unique Selling Proposition). So, you have an idea on the basis of which you want to build a business and conquer the world market. The first step in testing the viability of this idea should be to create a unique selling proposition. What value will your product provide to the customer? How is it different from hundreds of others?
A UTP should include several components:
A UTP should include several components:
- Uniqueness. It should be clear from your offer that no one else can offer a similar product or service.
- Need. The product should address a need of the audience.
- Specificity. The offer should be clear. A potential customer should easily and quickly understand what is being offered.
MVP (minimum viable product) is a test version of a service or product. MVPs are created to test hypotheses and assess demand. Feedback from the audience helps to understand whether the project is worth developing further. Such well-known companies as Uber, eBay, Spotify, Yahoo, Snapchat and many others started their way on the market with MVP launches.
According to CBInsights research, 42% of startups failed because no one needed the product created. Passionate about their idea, entrepreneurs solved problems that were interesting to them, rather than those that the market needed. To avoid falling into this statistic, you need to test your ideas. How to do it? PAnDiKubiz marketing specialists will help you with this.
According to CBInsights research, 42% of startups failed because no one needed the product created. Passionate about their idea, entrepreneurs solved problems that were interesting to them, rather than those that the market needed. To avoid falling into this statistic, you need to test your ideas. How to do it? PAnDiKubiz marketing specialists will help you with this.
Stages of product testing
- Conduct a market analysis. Check industry platforms and resources, relevant topics on forums. Look for a similar idea that has already been implemented or attempted. Analyse the successes and failures.
- Make a portrait of your customer. The more detailed the portrait of your customer, the higher the chances of making a suitable offer. You should know everything about your customer: where he lives, how much he earns, what he is into, etc.
- Conduct a survey of your target audience. A survey of potential customers will help you understand their preferences. It is about collecting objective feedback and information about expectations from the product. The larger and more diverse the sample of interviewees - the more reliable the result of testing the idea. Also ask how much they are willing to pay for your product.
- Study the demand. Set up a branding site and run adverts, PAnDiKubiz Cyprus managers recommend. This is a good way to test the demand for a service or product. You may not even produce or purchase the first batch of product. Let customers pre-order the product. If there are few requests, it means that the demand is low or there is something wrong with your offer. Do not be afraid to show people unfinished work. It is better to enter the market with a non-ideal product, gather feedback, fix all the flaws, and then present the version that will be in demand and make a profit.
It can be hard to give up on your hypotheses and realise that it will be completely unprofitable to develop a product. Even if your idea turns out to be unviable, don't stop. Try to implement new ideas. Remember that most failures could have been avoided at the stage of preparation for the launch of the business. For this purpose, any entrepreneur should make it a rule to create an MVP, PAnDiKubiz experts noted. It will help to confirm the value of the original idea or abandon it if it turns out to be unsuccessful. Don't forget that MVP is the basis for developing a unique, useful and competitive product.
Don't take failure personally
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