What are the different stages of validation in a startup journey? Is it possible to execute an idea into a reality? What are the metrics involved in the process? Is the product worth it in the long run? Such questions continue to bewilder the budding entrepreneurs, defined as “Analysis Paralysis”.
For instance, a person named “B” decided to start a business. “B” worked day & night to develop a prototype complementing his business idea.
But as “B” strides forward, he encounters a couple of challenges like product’s feasibility, viability & validity. It makes him wonder whether the idea merits the further investment of his time and money.
Are you somebody stuck in a similar situation? Or are you still at the initial phase of execution, finding it hard to implement your ideas effectively? Regardless, don’t be like “B”. With just a few proven thought exercises, you can both face strenuous situations with ease & gain insightful data to evaluate your startup idea.
A. What is your MVP
A product must echo efficiency and sustainability to bring valuable results in the future. It is where MVP or a Minimum Viable Product could be of use.
Eric Ries defined MVP as that version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort.
In a nutshell, nothing communicates like a demo. Leveraging MVP can provide you with immeasurable, constructive user feedback, in turn, helping you improve the end product.
So, your MVP matters & it should be well-defined.
B. Define your customer base
Start with a clear niche, especially, if it’s your first time venturing into a business.
For example, while it may be tempting to meet goods demand in the market by establishing a supermarket, it may be easier, to begin with, a small grocery store with good customer service & a targeted demographic. Once a positive word of mouth gets going, you can work on future phases & probably build a supermarket chain like Big Bazaar, 7-Eleven, Reliance, etc.
C. What sets you apart
Great startups get created through great service models, unique prospects, and a persistent focus on growth. You got to find that distinctive prospect (USP) of your business model. Like what separates you from all the other competitors offering the same services in the region.
It’s essential to plan out an in-depth analysis of your competitors. Study the offerings, value proposition as it can help you build a good idea.
D. What skills & resources do you bring to the table
You’ve begun your startup journey with a good idea. Now what? It’s important to realize that all great startups start with an idea followed by years of hard work. One must choose & acquire a definite skill or resource from- Marketing, Funding, technology, among the others to excel as a startup.
For instance, you are a tech-savvy person who has an idea about future technologies. However, you don’t know how to direct or use your funds in the business. In this case, you may require the help of a financial planner.
Failure to do so may have consequences later in the venture. So one must evaluate what expertise they bring to the table & what they require. Keeping this step into consideration would enhance productivity & ensure seamless delivery of your product to the consumers within a stipulated time.
The last one isn’t a specific step but is the underlying principle & must be employed to evaluate the business idea. Keep Learning about your customers & interacting with them at all times. This way you can keep them engaged & also learn about emerging consumer demands. Only then can you build a product that resonates.