Daily Musings - Shane Black

Validating A Business Idea

The best way to see if it is worth pursuing a business idea is to validate it.

Despite what many think, this doesn’t have to be a long or expensive process.

It’s quite achievable to validate a business idea in a weekend if you put the work in.

Validating a business idea is basically seeing if people will pay you for a product or service before you put in all the hard work of producing it or planning everything.

It’s definitely easier to validate a service idea than a product idea, but the same applies to both types of business ideas.

First, you need to be crystal clear on who your ideal customer is.

This involves knowing everything you can about them; their age, sex, occupation, hobbies, likes & dislikes, income, desires, shopping habits etc.

Once you know this information, you can work out the best way to get amongst your ideal customers and validate your idea.

It could involve being around them in person, getting involved in online conversations, attending events, networking at social functions, or being introduced to people through friends or colleagues.

Once you know more about your ideal customers, you can then run some Google or social network ads to these people and gauge their interest.

Run some ads that point to a one-page landing site that promotes your idea, outlines the cost and gives them the ability to pre-purchase.

[easy-tweet tweet=”Getting money from people is the best way to validate an idea.” user=”ShaneBlackAU” usehashtags=”no”]

If you just ask people if they would buy it, you will find a lot will say yes but when it comes time to pay, they won’t.

Should the business idea not take off, you refund the money to anyone that has paid.

Where many people go wrong, is they think you have to have the whole business up and running before you validate an idea.

This is wrong and will just lead down the path of you wasting a lot of time and money.

Validate a business idea and then worry about setting up the business and getting things off the ground.

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This is my personal blog, where I share the books I’m reading, what I’m learning, and the challenges I’m setting myself. I hope you find some value here.

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