5 Ways to Validate Your Business Idea

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The concept of starting a small business has been gaining traction within British Columbia. An analysis conducted by BC Statistics shows in the 2014 Analytical Report that small businesses actually make up 98 percent of all businesses in British Columbia. Furthermore, 81 percent of these small businesses employ five people or less. This goes to show that British Columbia holds an abundance of small business opportunities for you to pursue.

But how can your business idea be validated in a relatively short time span? According to Gregg Brockway, co-founder of Hotwire and Triplt, “There are ways of looking at a business and seeing it’s working.” As smart business people, you understand the need to leap at any opportunity that can potentially provide profitable customer interaction.

Here are 5 ways to validate your business idea that can drive results for Cyber Monday:

Does It Ease A Pain Point?

Truly valuable business ideas help ease pain points for customers. These ideas solve problems and adds value to the lives of customers by bringing them more simplicity, efficiency or affordability. One of the most challenging aspects of validating your business idea is the fact that you’re the only initial user of this product or service. It’s difficult not to not be biased when you’re so in love with this business idea. Make sure your business idea is solving a common problem amongst your customer target audience and not just a problem you experience as an individual. Smashingmagazine.com suggests looking at the problem from alternative angles if you can’t come up with a traditional solution.

Don’t Commit To It

You shouldn’t be committing all your time, energy and life savings to one particular business idea. Sometimes you’ll realize that the business idea is just not worth pursuing partway through trying to get customer validation. It’s also easy for customer demands to change, in that case, you always have the option of pivoting your business and pursue another business idea.

One clear caution sign to be aware of is if you’ve lost sight of your initial vision. If you’ve forgotten why you’re pursuing this business idea and how it brings value then it’s time to take a pause. Don’t be afraid to put a halt on your project and take a step back to look at the bigger picture.

Actions Speak Louder Than Words

As much as your potential customers appear to take interest in your business idea–are they really willing to give your product or service a shot? The biggest mistake you can make is take the customers’ word for it when it comes to stating whether they’d use something that has yet to exist. When it comes to actually using a physical project or service, customers take other things into consideration like ease of use, convenience, lifestyle compatibility and more.

A great way to validate your business idea is by creating a prototype and showing it off to the world. Let your target audience touch it, feel it, use it. You might discover that your target audience refuses to use it because it doesn’t make their lives more efficient and that’s perfectly fine. The essence of validating your business idea is to capture whether it is something your customers will actually want, without investing a fortune on developing something no one will use.

The Customer Is Always Right

Indeed, the customer tends to be right most of the time in this case. When you’re out and about validating a business idea, you’re in it to hear what your customers have to say, so never forget that. Listen to why your potential customers wouldn’t want to pursue this product or service and take it to heart. Is there a similar product they’re already using? Is your product or service simply too expensive? Too time consuming?

If the responses are positive then consider which aspects of your business idea your customers really appreciate. Sometimes it’s easier to criticize the faults and more difficult to figure out why something is working. Here is where you need to figure out what it is that made your business idea a success among your target audience and scrap the rest.

Is It Time Yet?

When its all said and done, ask yourself, is the present time the most appropriate timing for you to launch your business idea? In the context of our discussion, it is the right timing. Cyber Monday is coming up and you can certainly consider holding a soft launch for your business idea to better test the waters.

Now It’s Your Turn

Are you planning on using any of the above tactics to validate your business idea? If so, which of the tactics will you be using to best tailor to your customer needs and values?

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