Testing Your New Ideas and Products

How to know if your business idea will work. The best thing about market testing for a new product, Your New Ideas or service is that it is perfect because there is no one to criticize, and cheap because it is not built. The shade tree and apple part of your concept are as fun as it is cheap. It’s when the time comes to approach investors or plop down your own cash for a trial run, that things start getting a little more serious. To avoid wasting your or others’ time and cash in the next phase, here are a few tips for economical testing your great ideas.

How to know if your business idea will work:

how to know if your business idea will work

Whether you are selling a new hat or a million-dollar security software system, buyers have to “get” the benefit of your product in 30 seconds or less. Testing and grading your new idea only on the type of customer that you will be targeting is the key. Many customers who might be in the market for some other product, simply won’t understand. This is a very long and tough process, but critical for future success.

Test prototypes with real customers. While this may feel like more time and effort upfront, in the long-term you will avoid many missteps. This will also allow you to do your product research with a less expensive item. There is no need to be talked into ordering a thousand of something before you even know if your targeted people have an interest.

Generally, people want to be kind and encouraging. To avoid any false positive feedback on your idea, make sure there is a value exchange. If you have a valuable product/service, customers will pay you with money or time. And your team, friends, family, and start-up buddies likely don’t get to vote. The only people whose opinions matter are those target customers that have a real need for your product.

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Joseph Ferriolo

Director at Wise Business Plans®
Joseph Ferriolo is the Director of Wise Business Plans. He has overseen over 15,000 written business plans during his tenure, raising over $1BN in funding and providing 30K+ consulting hours for startup companies.

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