Before you go ahead to actually start your business, there are ways to test your idea to see if it is capable of really making you money or not. Somewhere between scribbling your idea on a piece of paper and starting a business, there is a process you need to carry out that mainly determines either your success or failure in business.
A lot of times, would-be entrepreneurs get carried away by their “epiphanies” the moments they imagine they have found the perfect idea and forget to test the idea to find out if it is actually viable or not.
And mostly if there is a need for your business idea in the market. We call it “evidence based market research“.
There are some steps required to test your business idea; these steps are necessary so as to keep from wasting valuable time and money on unfocused or untargeted activities. Of course, there are times that an idea turns out to be a great business idea anyways, in spite of a lack of market research. Unfortunately, a lot of other occasions, an untested idea always crashes and burns.
If your idea for a business seems too tiresome and clunky, it is great to create a model for it. It’s not only when the idea feels clunky that a model is needed, creating a model is very easy to do and updating it is a breeze. With a model, you get to enjoy a clear overview of the building blocks of your business idea: the customer segments, channels to reach out to clients, value propositions, revenue streams, key resources, customer relationship, principal partners, activities that create value, and cost structure.
Execute a market survey After a model has been created, the next step in testing your business idea is to execute a market survey. A Market Survey is an organized effort to gather information about your target audience or customers. Absolutely no business should be launched without the execution of a market survey. A Market Survey provides important information to identify and analyze the market need, market size and your competition. There are sites where this can be done, you just create an online questionnaire and share the link to the survey with your target audience, this transcends geographic boundaries and helps you gain a broader perspective and is often more preferred to the traditional method of printing out and handing questionnaires yourself, although a combination of both is the best approach.
Another way of carrying out a market survey is to conduct a Focused Group Session both before and after the completion of your Minimum Viable Product . Here, you invite people from your chosen target demographic to participate in a group discussion on the products or services. They would be advice to speak freely about what they want done; that is before the product is ready and what they want to be changed, when it is done. A focus group is a very good idea and would help achieve the following: It helps you find out your customers first impression of the product. It helps gather real -time customer’s feedback on the virtues and vices of the products.
When your idea looks a Flop, you discover a lot of holes in it, it doesn’t mean you need to totally scrap the whole business start-up plan and resign yourself to life as an employee. Sometimes, the “terrible” idea is just in need of some reworking. It can be disheartening when an idea is revealed to be a flop, considering the amount of time and money you have already invested in it, first during the idea stage, and then the market research stage to test it, however, giving up is never and has never been the right option. Rather, it is recommended that you take time out and focus your energy on determining exactly why your idea would not work and where it needs improvements to ensure future success.
Although no entrepreneur wants to hear that his “idea” is flawed, only by listening and reacting to feedback from others can he give his idea a chance for success. Ask yourself, is the weakness one that can be overcome, if the answer is yes, work on overcoming it. However, if your answer is no and the weakness discovered in your plan cannot be overcome and the idea made to create true value for your customer and your business, it is time to leave that idea and pursue another one.
Now for the other option after testing, wthen Your Idea is great and Ready to Go.
factor to consider is , you want to set a price that is competitive and still capable of influencing people’s Pricing decision to buy from you, this is especially necessary if there is much competition. now, do not immediately dismiss this advice, think about it. When you start always pricing high, when high the pricing structure isn’t working, you can go a tad lower, your customers would be happy that your product is now “cheaper” and they’ll purchase more from you. If however you start low, you can never go up without losing a lot of customers who will feel your services are too “costly.” It is best to test different pricing offers, each month, set a new price for your services, and remember to keep going a little bit lower until you reach the minimum percentage of profit you have decided to make on each product.