How to quickly test a business idea
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Technologies similar to Cookies
Similar technologies are technics or tools, using certain characteristics to identify devices so that visits to a website can be analyzed. It includes, for example, HTML5 local storage, local Shared objects, fingerprinting techniques, tracking pixels and plugins.
For ease of reference, cookies and similar technologies are referred as "Cookies".
Usage of Cookies
Cookies enable us to provide users with certain features and supply us with information about website visits.
We also make use of cookies to make our site more user-friendly, to better understand our existing and prospective customers, including associating a user with different devices and browsers that they may use for online targeting and advertising purposes.
The main problem with any commercial idea is that you can never be absolutely sure of its success. Crash testing helps you to really assess the prospects and viability of your idea, and to identify problems before money is invested in the business.
Testing is all about gathering data and evidence. From interviewing potential customers to researching delivery costs. Every test that is conducted provides insight into what still needs to be done (or changed) for a successful launch. When testing an idea, you can combine approaches. For some, getting quick feedback from family and friends is enough. Others gather focus groups and take a long time to decide on the next step.
When testing a business idea, Fincraft Capital helps start-ups to
- Identify market problems and understand the 'pain points' of the target audience
- Set prices that are affordable for the business and interesting for customers
- Verify start-up conditions, delivery and shipping terms
- Attract investment by creating a business and promotion plan
- Get honest feedback, change the offer and the product itself
- Identify the weaknesses of an idea, determine its viability and scalability
Whenever you have a business idea, test it. Let's break down how you can do this quickly and easily.
Define the concept
A clearly defined concept helps to identify the key points that need to be tested. Describe your expectations. Create process maps.
Test the concept:
1. The product. How does it solve the customer's problem? How common is the problem? Will customers pay for the solution? How much and how often?
2. TSS. What is the unique advantage of your idea? How differentiated is your offer? The more different you are from your competitors, the more valuable you are to the customer. How will potential customers recognise the novelty? Can customers clearly understand and appreciate it?
3. Price. Think long term. If you start your business with underpriced products, sooner or later you will have to raise them. How will this affect a particular customer and their ability to buy from you in a year or two?
4. Market size. What is the size of the potential market? What share of that market can your company get?
Testing is all about gathering data and evidence. From interviewing potential customers to researching delivery costs. Every test that is conducted provides insight into what still needs to be done (or changed) for a successful launch. When testing an idea, you can combine approaches. For some, getting quick feedback from family and friends is enough. Others gather focus groups and take a long time to decide on the next step.
When testing a business idea, Fincraft Capital helps start-ups to
- Identify market problems and understand the 'pain points' of the target audience
- Set prices that are affordable for the business and interesting for customers
- Verify start-up conditions, delivery and shipping terms
- Attract investment by creating a business and promotion plan
- Get honest feedback, change the offer and the product itself
- Identify the weaknesses of an idea, determine its viability and scalability
Whenever you have a business idea, test it. Let's break down how you can do this quickly and easily.
Define the concept
A clearly defined concept helps to identify the key points that need to be tested. Describe your expectations. Create process maps.
Test the concept:
1. The product. How does it solve the customer's problem? How common is the problem? Will customers pay for the solution? How much and how often?
2. TSS. What is the unique advantage of your idea? How differentiated is your offer? The more different you are from your competitors, the more valuable you are to the customer. How will potential customers recognise the novelty? Can customers clearly understand and appreciate it?
3. Price. Think long term. If you start your business with underpriced products, sooner or later you will have to raise them. How will this affect a particular customer and their ability to buy from you in a year or two?
4. Market size. What is the size of the potential market? What share of that market can your company get?
Calculate the costs
We are not talking about a classic business plan with many pages. During the crash-testing phase, you will need to carry out a detailed analysis of the costs associated not only with the launch, but also with the further development of the idea.
- Start-up costs (purchase of equipment, software, rent of premises)
- Costs of first purchases or attracting specialist staff
- Variable costs
- Costs that may arise from the volume and turnover of goods (loans, bank interest, bank commission)
- Promotion, marketing and advertising costs (preliminary and very approximate)
Competitor analysis
Find out how your competitors price. Analyse the full range of services they offer. Look for mistakes, avoid them. Find out how your competitors promote their products and what additional services they offer. Use online marketing tools and analyse their websites.
Make adjustments immediately
The temptation not to test an idea, but to implement processes here and now, based on your own beliefs and preferences, can be very costly. The more qualitatively an idea is tested, the better you will understand who is interested in your offer. Test data is the basis for future advertising campaigns and personalised mailings. To test demand, use Google Trends to analyse the popularity of search queries and the geography of potential customers.
Conduct a social media survey or call prospects. Create a list of detailed questions to understand their needs, what they think of your idea and how much they are willing to pay. To get detailed answers, ask open-ended questions. Why? How? How?
We are not talking about a classic business plan with many pages. During the crash-testing phase, you will need to carry out a detailed analysis of the costs associated not only with the launch, but also with the further development of the idea.
- Start-up costs (purchase of equipment, software, rent of premises)
- Costs of first purchases or attracting specialist staff
- Variable costs
- Costs that may arise from the volume and turnover of goods (loans, bank interest, bank commission)
- Promotion, marketing and advertising costs (preliminary and very approximate)
Competitor analysis
Find out how your competitors price. Analyse the full range of services they offer. Look for mistakes, avoid them. Find out how your competitors promote their products and what additional services they offer. Use online marketing tools and analyse their websites.
Make adjustments immediately
The temptation not to test an idea, but to implement processes here and now, based on your own beliefs and preferences, can be very costly. The more qualitatively an idea is tested, the better you will understand who is interested in your offer. Test data is the basis for future advertising campaigns and personalised mailings. To test demand, use Google Trends to analyse the popularity of search queries and the geography of potential customers.
Conduct a social media survey or call prospects. Create a list of detailed questions to understand their needs, what they think of your idea and how much they are willing to pay. To get detailed answers, ask open-ended questions. Why? How? How?
ChatGPT
Use ChatGPT. This service, based on artificial intelligence, can analyse large amounts of data. It can be used to predict and even change consumer behaviour. ChatGPT is used to predict customer behaviour, analyse competitors' offers and pricing strategies (including discounts and promotions) and simulate market scenarios. Working in a conversational mode, ChatGPT is good at analysing demographics, psychographics and target audience behaviour. You can ask ChatGPT to evaluate your business idea and generate a new one. ChatGPT comes into play at the stage of analysing customer responses, monitoring surveys, validating and aggregating results.
Credit, website, social media
The quickest way to test an idea or a product is to create a landing page, start advertising and drive traffic to the page through contextual or targeted advertising. When using a social media post as a landing page, remember that targeting a 'cold' audience will increase testing time and traffic. Don't forget to analyse incoming traffic and monitor audience response.
Set limits
Set limits and define key performance indicators (KPIs) for testing. This will help you to control and change the quality of your processes. It is necessary to determine in advance which parameters will be the most important for evaluating the result. Set a cost ceiling that should not be exceeded during testing. Set specific deadlines and milestones. Formulate which key strategic business parameters cannot be changed under any circumstances.
By following these steps, you will not only be able to identify the potential of your idea, but also make it successful and in demand. Fincraft Capital s.r.o. develops tailor-made iterative tests to assess the potential and prospects of a start-up. Business idea validation is a dynamic process that requires flexibility, innovation and willingness to change.
Use ChatGPT. This service, based on artificial intelligence, can analyse large amounts of data. It can be used to predict and even change consumer behaviour. ChatGPT is used to predict customer behaviour, analyse competitors' offers and pricing strategies (including discounts and promotions) and simulate market scenarios. Working in a conversational mode, ChatGPT is good at analysing demographics, psychographics and target audience behaviour. You can ask ChatGPT to evaluate your business idea and generate a new one. ChatGPT comes into play at the stage of analysing customer responses, monitoring surveys, validating and aggregating results.
Credit, website, social media
The quickest way to test an idea or a product is to create a landing page, start advertising and drive traffic to the page through contextual or targeted advertising. When using a social media post as a landing page, remember that targeting a 'cold' audience will increase testing time and traffic. Don't forget to analyse incoming traffic and monitor audience response.
Set limits
Set limits and define key performance indicators (KPIs) for testing. This will help you to control and change the quality of your processes. It is necessary to determine in advance which parameters will be the most important for evaluating the result. Set a cost ceiling that should not be exceeded during testing. Set specific deadlines and milestones. Formulate which key strategic business parameters cannot be changed under any circumstances.
By following these steps, you will not only be able to identify the potential of your idea, but also make it successful and in demand. Fincraft Capital s.r.o. develops tailor-made iterative tests to assess the potential and prospects of a start-up. Business idea validation is a dynamic process that requires flexibility, innovation and willingness to change.