Do you have a great business idea for the ‘next robust company’? If so, you may be thinking that your idea is simply perfect and powerful the way it is. However, you should weigh it before investing your time, money, and resources into developing a business, service, or product prototype for which there is no apparent need or value in the market. You could be putting yourself in a devastating position if you spend all of your personal assets, consume credit cards, and take bank loans for your startup, only to see that it is useless.
Failing to evaluate your business idea could result in a great loss if it backfires. It is just like reporting transactions in the books of the financial accounts of a company. If you make material blunders in bookkeeping, you harm the business significantly. Here are four of the simplest tests to determine whether your idea is worth investing in.
1. Show Patience and then Build a Test Service or Product Prototype
Although you are excited and confident about your unique business idea, you must show patience. When you have several idea opportunities rushing around in your head, avoid getting in a rush to make a business plan or hire a team. Rather, wait a few weeks to figure out which exact idea is truly suitable. Move forward with an idea only when you have a burning feeling and intuition that the world immensely needs your idea as a product or a service.
Once you have patiently completed your plan, perform the simplest test of building a prototype, based on your idea and present it to a general audience to obtain their authentic and honest comments. If their eyebrows go up and they show a sense of excitement as you brief them, you probably have a potential idea. On the contrary, if you see them furrowing their brow and their body language is negative, your idea might not be a potential good bet.
2. Design an MVP then Test and Tweak your Idea to Best Suit your Market
A minimum viable product, MVP, is typically the simplest and most elementary picture of your business idea that you can practically sell as a product or service. Building an MVP and seeing how it works out is another one of the simplest tests to assess your idea’s potential. In addition, many successful tech entrepreneurs recommend that you have your product or service’s simplest version that you can easily experiment with and promote early in the idea development process so that you may cater the necessary tweaks and changes in response to the genuine feedback from your target audience.
The test market feedback is valuable as it helps you know how to refine not only your product or service but also the inherent nature of your idea. For instance, your smartphone gaming idea can be evolved during the test and trial phase.
3. Let a Group of Critics Run It
When you have an MVP of your idea, test service, or first prototype ready, bring it forth towards your potential target audience. Consequently, you should survey and/or talk to a minimum of fifty potential clients to figure out whether they identify with your idea the exact way you do. In simpler words, you have to determine whether your idea is a genuine need for most of your target audience or simply very few people. Though it is another simple test to find your business idea’s strength, you have to be prudent and diligent when selecting the fifty potential customers because if you have had previous irate encounters with them, you might not get honest feedback.
4. Build a Test Website Linked to Social Media
Once your business idea is out in the form of a product or service, your target market requires a place to obtain further information about it or share it with others. Thus, creating a simple website and linking it with social media is a great way to provide more details and it is the simplest test to see how most people are reacting towards what you are selling or providing. User clicks, comments, and shares will tell you whether you should continue working on your idea or do some more improvisation before either going public or back to the drawing board.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.