New Founder’s Guide to Test And Validate Startup Ideas
TheCodeWork Team | 24 January 2023
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Would you like to see your hard-earned seed capital getting drained after a product that no one wants? Yeah. I thought so. But you know what? Unfortunately, it happens more often than you’d think. People become overly confident with their product ideas. They end up draining their resources into building products that may not be in public demand. The main problem here is that new founders fail to test and validate startup ideas before hitting the market.
“Product development is an iterative cycle, you’re going to come up with something, build it, launch it, and then you’re just going to learn and do it again.”
—MATTHEW CONROY, PRODUCT MANAGER, GOOGLE
That’s what we’ll be talking about in today’s article.
Basically, when you test and validate startup ideas, you make sure that it’s addressing an existing gap in the market. And that your product is meeting your target customers’ needs and demands.
Makes sense, right?
If you are a new founder with a solid product idea, it’s easy to get carried away with the idea. I’d know; we’ve been there too. However, before you invest too much time and energy into your idea, you need to see whether the idea has any long-term potential.
This is why, building an MVP first is the way to go (more on this coming later!). Trust me, this will help you save substantial amounts of money, time, and effort in the long run. All of which you’ll need to establish your startup.
Speaking of establishing startups, are you planning to build one sometime soon? In that case, be sure to check out TheCodeWork’s Startup Ecosystem, where we provide all kinds of startup-related assistance. Be it tech support, legal aid, marketing campaign ideas, or funding opportunities–find everything under one roof!
Still not sure about why testing and validating startup ideas is so important? Well, read on to find out!
Why do you need to test and validate startup ideas before hitting the market?
Let’s say you have the most brilliant product idea for your startup. It has flawless design and tons of features. However, if there’s no market need for the said product, no one will pay for it. Needless to say, it won’t help your business grow.
I know, I know…this is all a bit negative. But my point here is, as a new founder, your startup’s primary focus should be on creating a product that the customer (market) wants. Now, you may be wondering: how can anyone know what the customer wants unless they launch a full-fledged product?
Startup validation typically occurs before you release a full-fledged product widely into the market. And it’s an essential step because it:
Gives you real-time data about your product’s performance on the market
Helps you identify what demographic your product is appealing to
Checks that your product is in compliance with the latest safety guidelines
And most importantly, it allows you to discover new opportunities and avenues that will make your startup idea even better! In short, idea validation is a strategy that lowers the possibility of failure while increasing the likelihood of success for a business.
Tell me, doesn’t that sound like a win-win all around?
Speaking of increasing the chances for a successful startup, a little extra support always helps, doesn’t it? And that’s exactly what we provide at TheCodeWork’s Startup Ecosystem! Catapult your business to success with extra support for all your startup-related efforts–be it technical, legal, or financial.
So how exactly will you go about testing and validating your startup idea? Well, stay tuned because that’s what we’re going to talk about in the upcoming section.
Test and Validate Startup Ideas – the ultimate guide
Before investing tons of money in product development, testing it will help to ensure that you are creating the right thing. That is why, ideally you should plan out your testing and validation process as early as possible in the product development life-cycle.
Here are some important steps you can follow when testing your startup
idea. Make sure to note them down!
1. Identify and Define Your Target Market
First things first: always, always think about the market you’re targeting with your digital product before you consider launching it.
Here are some important checklist items to help you identify and define your target market:
Examine (E) similar products that are available in the market. Find out who is purchasing them.
Research (R) everything you can about these buyers. What region they’re coming from, how much they’re spending on the product, etc. Trust me, this information can come in super handy during the product development process. (Such as setting the price of the product or designing its UI/UX).
Determine (D) the type of message you want to convey to your target consumers once you have an idea of who they are. This will make it easier for you to design marketing materials that are specific to their wants and preferences.
Once you’ve got the ERDs covered, it will become much easier for you to channelize your development and marketing efforts on the appropriate demographic.
Already have some competition in the market you are targeting? This is a positive news to be honest. Why? Because then you know that there is already some demand in the market. Simple!
Carefully analyzing the competition can reveal some really useful information for your business. Details such as:
Products/services are they offering
What USPs are they offering in their products
Their target demographics?
Which location are they operating in?
How are they pricing their products?
What marketing strategies are they using for their business?
….and lots more. Once you have this valuable information, you can use it as a reference point for your product/business! A smart plan, isn’t it?
Here are some tried-and-tested techniques for a solid competitor analysis:
purchasing an item from them
enrolling in their newsletters
keeping up with them on social media
following their blogs
So, tell me? Did you think of a brilliant business idea, only to find it already taken? Worry not!
Your startup can thrive in a crowded market too–with the right support! Join TheCodeWork’s Startup Ecosystem for any and all startup-related support. Stand out from the crowd with added tech assistance, funding opportunities, marketing/branding help, or legal aid!
Click here to book a free appointment with our team now!
Now that you’re well acquainted with your potential customers, it’s time to see what they have to say about your startup idea. You might want to “pitch” your idea to a few people and collect their opinions on it.
You can go into detail and highlight the following:
How your product functions,
Problem – solving ability of your product
Difference with similar existing products on the market, and
The particular advantages it will offer your clients.
The goal here is to engage and persuade potential customers to care about your digital product concept.
Psst! You can consider starting a crowdfunding campaign with your product pitch to gauge the response you get. This will also help set the stage for future fundraising campaigns when you need them!
See, you’ll never know what exactly the public thinks of your product unless you release it to the public. And launching an MVP is the quickest, safest, and most cost-effective way to test your product in the real world.
Wondering how? Let me explain!
An MVP is basically the most elementary version of your digital product idea. It consists of only the core features, without any trimmings. So, you can build it with a fraction of the cost and time compared to a full-fledged product. And then release it into the market as early as possible.
Basic though it might be, an MVP is packed with benefits:
It enables you to launch your product faster
You can evaluate the core features of your product– which ones are most popular, and which ones are not
You can get an idea of how much your product may be worth, according to potential customers
It opens avenues for you to communicate with clients in your niche market and gather their feedback
Tell me, how good does all that sound?
So, if you are planning to build an MVP of your product first, I have some interesting news for you! TheCodeWork’s MVP Development Program specializes in building MVPs for digital product ideas. And we would love to hear about your idea–and transform it into reality!
So what are you waiting for? Realize your startup idea now!
If you want your startup to be a roaring success (as I’m sure you do), make sure to test and validate your idea first! Only if you test and validate startup ideas, you can be sure that you’re creating the right thing and developing a product that meets actual market needs.
So, as a new founder, save your time and money by testing and validating your startup ideas first. Use the above mentioned steps as a guide to get going. You never know, you might just stumble upon unexpected new opportunities with even greater potential!
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