Wannabe entrepreneurs should…or better… they MUST validate their business idea before starting the “startup journey”. Now, especially young entrepreneurs often wonder what the perfect validation is about and how it can be done in order to get the correct results.
Let’s see some simple validation tips that can actually help entrepreneurs make decisions.
1. Use facts and data
This process can be quite demanding but if it is done correctly it can lead you to great results, which can also be used when talking with potential investors. You need to reach market data and trends, statistical analysis and competition facts. This info will help you clearly identify the needs of the market and perhaps reshape your idea in order for it to fit in a specific “environment”. It is difficult because you need to look really “deep” but once you have done it results will be rewarding.
2. Feedback from customers and advisors
This is the most common process for first time entrepreneurs. You need to pay close attention even to the face expressions of the people you talk to. Of course, in order to have qualitative results you need to prepare a proper questionnaire for them. These answers will be your feedback.
3. Follow shakers and movers
Use the social media to follow market trends from people you know they are real “shakers and movers”. If you see that opinion leaders or serial entrepreneurs are moving in the same direction then you know you are in the right path. Think of this in accordance with the rest of their activities and try to identify how passionate they are about it. In any case, this is not to the kind of validation you can use for future “reference” or during discussions. However, it is something important for you to know.
4. Offer you service or product for free for a limited time
Find a business which is a potential customer or get in contact with potential customers if your service is B2C. Offer them your service or product for free for some time. Then find a way to actually measure the results of your work. This is the perfect way to find out if your business idea is really useful to others or not.
Last but not least, hire a market research company if you can afford. You will not regret having spent the money since the results will definitely affect your life from then on!