Have you ever thought about how much it takes to launch a new startup? In fact, it has never been easier to start a new venture. But do you know that most of the new business ideas fall into pieces within one year of their launch?
However, the major causes considered for this failure include a lack of funding and skills to execute the idea. But even though you need to have a stronger idea to grow your business, one of the most important reasons that your startup might fail is the lack of appropriate market research.
We have seen that sometimes even the most peculiar ideas become the ball of fire in their niche and sometimes the most worthy ideas fall into the trap of failure. Therefore, it is crucial to validate it to know if your idea is credible enough to travel the success trajectory.
In this blog, we have discussed what exactly it means to validate a business idea and how you can perform the validation task.
What Is Idea Validation?
Let’s understand it this way, you are planning to start a new business, you need to perform good market research to know that
- Is your idea worth launching?
- Do people crave this product?
- Would they buy your product?
- What would be your market niche?
- Who would be your customers?
- How many such businesses already exist, and many more such questions.
We call idea validation to acquire answers to the above points to make informed decisions about your startup/business idea.
In a simple definition, idea validation is the process of garnering statistics around your idea through various surveys, analysis, and experimentation to make risk-free decisions.
Why Should You Validate An Idea?
Now the next question that arises is what makes it important to validate an idea. When igniting a new business, it is important to test your idea at the stage of development.
This is because new ideas have uncertain and speculative elements which have the potential to ruin your business plan if not determined properly.
An idea should be validated before putting a huge amount of resources and money into it to reduce the chances of getting stumble at the verge of growing. The main intent behind validating an idea is to ensure that it is desired by the customers and can solve the purpose.
Now since you know what idea validation is, and why is it even important, the next important point that needs to be focused on is how to go with the flow of the validation process. In the next section, we will help you create a process that can help you validate your business idea.
How To Validate A Business Idea?
The process of validating a business idea is entirely taken up by a startup studio. These startup studios help the entrepreneurs validate their idea and take their business from the idea stage to the seed stage. One such example is Sky21. This startup studio walks with you throughout the journey of your new startup starting from planning your business to growing your business.
Now, talking about the validation process it is bifurcated into 3 major segments.
- Market validation segment
- Idea validation segment
- Product validation segment
Let us try to understand each segment in detail and know-how Sky21 helps you win over each segment smoothly.
1. Market Validation Segment
It is the first and foremost step to enter into the phase of validation. The only purpose for this segment of validation is to know if the resulting product of your business idea has a market, what would be the market range of your product, or will people pay for it?
Certainly, Sky21 helps the startups through this stage of validation by doing the entire market research for them and providing them with the formula to ignite their business.
2. Idea Validation Segment
After you have figured out the questions that come up at the stage of market validation. And once you know that you have a paying audience for your product, the stepping stone is to validate the idea.
At the end of this segment, you need to be sure enough to spend money, time, and effort on your idea. The purpose of this segment is to generate interest in people regarding your idea and determine the percentage of people interested.
Sky21 would help you create either a landing page, or a mobile application, or content that would market for your idea and stimulate people to invest it in. The marketing team of the startup studio will create attractive offers for people to invest time in browsing it. Hence, the better the conversion rates, the higher will be the potential of your business idea.
3. Product Validation Segment
The validation process is devised to provide you the certainty that your business will grow and sustain with paying audience. The result of the validation procedure is to meet the desired number of customers who would purchase a basic PoC (Proof of Concept) of your idea.
This segment is the last and final stage of the validation process that confirms the success of your business idea. Now since you already know that you have a market and people are interested in your product, it’s time for your startup to launch your MVP (minimum viable product) to the potential customers.
Here comes Sky21 to rescue you from this long and tedious task to create your MVP and do the proof of concept.
Note- Minimum viable product is the primitive version of the product which includes just the basic features for the costumes to use, and solves the problem you are addressing in the most simplest waysProof of Concept is the evidence of your business concept and proposal that can be derived through experimentation.
Sky21 will help you launch your MVP with the help of its sound team, financial projections, marketing strategy and will monitor its traction and keep it in iteration. This startup studio even promises to do PoC of your business concept.It keeps track of the statistics of customers buying the product and features loved and appreciated by them.
When you launch your final MVP after multiple iterations such that it passes all the expectations and desires of the customers, your business idea and product are finally validated.
Validating an idea is done to eliminate the risk of business failure after you have water your idea with full effort, money, and time.
The only purpose of idea validation is to be assured of the fact that your business idea has the potential to give neck-to-neck competition in the market and stand still in any circumstances that come your way.
Sky21 as a startup studio is there to work with you as your co-founder and will do the entire job of validation for you with a systematic approach without any hustle.