Starting a business can be exhilarating when that lightbulb idea strikes. The temptation is to jump in headfirst, convinced you’re onto the next big thing. I’ve been there myself – eagerly sketching out features, imagining the launch, and daydreaming about success. But this excitement can blur a crucial reality: a vision alone isn’t enough. 

“Ideas are worthless. Execution is priceless”

Recently, a mentor put it plainly: Starting a business isn’t about having the best idea; it’s about running many experiments and testing hypotheses until one turns profitable – and then doubling down.

This revelation led me to rethink everything. Before pouring money and resources into building something, there’s a step that’s both less glamorous and far more essential: validating the concept. In this post, I’ll share how to validate your concept, and why that step is the most important investment you can make in your entrepreneurial journey.

Why Validate?

Think of your business idea as a science experiment. It may seem groundbreaking to you, but until it meets the reality of market demand, it’s just a theory. The process of validation ensures that you don’t waste time, money, or energy on an idea that won’t gain traction. It’s the difference between launching with confidence and launching with wishful thinking.

Benefits of Validation:

• Reduce Risk: Minimises the likelihood of costly failures.
• Customer Alignment: Helps tailor your offering to real customer needs.
• Resource Efficiency: Ensures you only invest heavily in a concept that shows true potential.
• Investor Appeal: Demonstrates to potential investors that your idea is backed by market evidence, not just enthusiasm.

How to Validate Your Business:

Step 1: Define Your Hypothesis:

Start with a clear statement of what you believe to be true. For example, “Busy professionals would prefer a streamlined app to manage their daily tasks and improve productivity.” Keep it simple and measurable.

Step 2: Interview potential customers

Go out and have real conversations. Identify your target market, and where that audience congregates, then invite them to have a quick discussion.

Find out if the problem you’re aiming to solve truly exists and if it matters enough for people to pay for a solution. Ask open-ended questions to uncover deeper insights. The goal here isn’t to sell your idea but to understand whether there’s genuine interest and need.

Be mindful of biassed responses at this stage from friends. There is a recognised term for this, called the “Mom test”: if you were to pitch your idea to your mother, she’d likely tell you it’s wonderful simply because she loves you and wants to be supportive. This kind of feedback is nice but ultimately unhelpful when determining if an idea has real market potential. I discuss this more in my other journal entries.

Step 3: Create a Minimum Viable Product (MVP)

Your MVP is the simplest, stripped-down version of your product that can still solve the core problem. 

When I first imagined my MVP, I thought this would be a simplified version of the final product; an uglier, less refined website/app/device. The truth is, it can be even more simple than that. Think of solutions to your core problem that don’t even require a line of code.

This could be a landing page explaining your service, a prototype with basic functionality, or even a manual service to mimic what your product will automate. More on this to come.

Example: Dropbox famously validated its concept with a simple explainer video. They didn’t build the full platform; they just demonstrated what it would do, generating interest and sign-ups without heavy investment.

Step 4: Conduct Smoke Tests

Launch a basic ad campaign or direct people to your MVP’s landing page to measure interest. Track how many users sign up, request more information, or click through to learn more. These are early indicators of potential demand.

Step 5: Gather Feedback and Iterate

After your initial tests, gather data and feedback. Was the interest strong? Were there comments or critiques? Use this information to adjust your idea. Don’t be afraid to pivot if needed; flexibility is crucial at this stage.

Step 6: Test Pricing and Monetisation

It’s one thing to know people are interested in your product, but are they willing to pay for it? People will say yes to something until there is real skin in the game. Experiment with different pricing models or premium features to see if users are prepared to convert their interest into purchases.

Pitfalls to Avoid During Validation

• Confirmation Bias: It’s easy to get attached to positive feedback and ignore the signs that your idea might need major changes. Stay objective. If you are struggling to do this, discuss your findings with trusted mentors.

• Skipping the MVP: Diving straight into a full build is a mistake. Remember, validation is about collecting evidence before significant investment.

• Limited Reach: Make sure you’re talking to a diverse and representative group. Feedback from friends and family can be biased and may not reflect the wider market.

My Personal Experience with Validation

In one of my early projects, I skipped this process altogether. I was so sure my idea was revolutionary that I jumped straight to building the full product. I later realised the problem I was solving wasn’t one that many people actually had. The lesson cost time and money but invaluable: excitement doesn’t equal validation.

Now, I am taking the opposite approach: launching simple landing pages, targeting potential customers through social media ads, and surveying those who signed up. The data has guided my next steps, confirming what resonated and what didn’t. When the time comes to build the product, I will have more assurance that it will stick.

Final Thoughts

Validating your business concept may not feel as thrilling as building the final product, but it’s the foundation that makes sustainable growth possible. It allows you to proceed with confidence, knowing that your idea has been tested in the real world. Remember, the most successful entrepreneurs aren’t just the ones with the best ideas; they’re the ones who know how to turn their ideas into something people truly want. So before you build, take a step back and validate. It could be the difference between an exciting idea that fades and a profitable venture that thrives.

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