A concept that especially focuses on creating a system that can help any startup to validate their unique idea thoroughly in real life situation without testing the water with both feet
For a startup, a unique idea focusing on solving a problem that masses face and creating product/service with features important for the user (and makes user willing to pay for that product/service) is a must. A lot of idea passes through the head each day and a lot is scrapped in a moment. After enough brainstorming, and reaching the Eureka moment, the problem any startup faces is- Is this viable solution from a business point of view?
We human obviously face cognitive bias in each decision we make. The solution may seem apt initially but from a business point, the market doesn’t accept that at all, leading to failure. The market tests each unique product/service thoroughly before investing a penny in it.
Understanding how Idea is validated in the normal course of action takes you through a long journey. The below diagram explains the same:
At the end of 8th Step (from the figure above), startups find out whether their unique idea is actually feasible to be taken further as a business venture or not. At this step, they have all the market relevant data, feedback from the customer, information on changes required in offering to suit market taste and preference, the customer expectation and aspiration and so on. By the time startup have all these data sound enough to take decision ahead, they have invested considerable time and money just to validate the idea. Even if necessary changes have to be made, re-validation will surely be required before mass production and committing 100% to it. And since we all know that the market is ruthless, scrapping the idea based on feedback received from market add to the pain.
"Being able to validate idea in real life situation and directly from a potential customer is what startups need. This will not only save their resources but they will be quick in turning idea into marketable product"
A unique blend of tools that gives the wings to engage your customer with the unique idea without having needed to have a physical product (or prototype or MVPs) will surely make startup decision-making ability better. Not only this reduce the risk of a startup being caught in cognitive bias but also help startup avoid reworking and reworking and reworking endlessly before coming up with an acceptable product. Since the idea is tested in a real-life situation, the data gathered based on user actions is more than required proof of idea validation. Here we are not ruling the idea of discussion forums available online claiming to get feedback from around the world from users, leaders, and mentors. These forums might be effective but not to the extent of generating analysis based on user action. Only a great idea can force the user to take positive action with your brand.
There are innumerable benefits and advantages associated with such model apart from getting market feedback.
1. Customer engagement with your brand (brand creation prior to product)
2. Quick turnaround: The traditional way of idea validation takes 6 months to a year (or even more) whereas this takes around 2 to 3 months
3. Resource Utilization: On one hand where the traditional method requires huge commitment (both in time and monetary resource), the modern tools reduces the risk and makes most out of the resources.
4. Unexplored areas: The entire exercise takes startups through various aspects that they might have overlooked at brainstorming stage (e.g. exploring many niche consumer base)
Developing an ecosystem for startups will surely produce quality at all level in the chain and will put ideas to rigorous testing. This will surely prove beneficial to endless startup base that are coming up in market. Not only this, even a risk averse can with great idea can test the idea and come-up confidently in the entrepreneurial world.
March 24, 2017
March 24, 2017
Stories by Ronak Biyani