Do you have a great idea for a new business? You’ve thought about it for days, weeks, months, and years and you know exactly what is going on in this business and why your idea will work. But how can you be sure that it works? Business ideas are everywhere, but only a few will make it through the series of tests that any upcoming business faces. Whether you want to start the best saffron brand in India or the best restaurant if a business is not viable, then there is no point in wasting your time developing it further. This article will explain how your business idea can be tested so you can see if it’s viable enough for you to put into action.
1. Build a prototype or test service
The first step is to get a prototype up and running. A prototype is a simplified version of your product that can be used to test some of the most important aspects of your business idea. It is not an actual product but a simulation of the product. It allows you to interview potential customers and stakeholders and see if people are interested in it. Figma, Adobe XD, and Invision studio are some of the most popular tools for building a prototype. The prototype can be of varying qualities from low fidelity to high fidelity. Low-fidelity prototypes are just basic sketches that show functionality. A high-fidelity prototype is closest to a complete product however it doesn’t use actual data but it does test other things like the design and fonts used in the product, in addition to functionality.
2. Build a minimum viable product (MVP)
After you’ve tested out your prototype, it’s time to build an MVP — or “minimum viable product.” An MVP is essentially the same as your prototype but with less functionality; it will allow you to gauge how much interest there is in your idea before spending too much money building something bigger or more complex than necessary, such as minimum lovable product.
An MVP is a complete working version of your idea that you build for testing purposes only. It should not be used for production yet because many things can go wrong during its development and testing phase.
3. Focus group
The first step in the process is to test your prototype in front of a focus group. This will give you valuable feedback that can help you improve the product or service. You’ll be able to see what the customer thinks about it, how easy it is to use, and whether it works for them. The more people who try out your product, the more likely it is that one of them will love it and sign up! Focus groups are great for testing the idea and getting real-time feedback from people who are not customers or investors. They are also great for learning how other businesses have used this product or service, which can give you ideas on how to optimize it.
4. Do competition research
Since there are so many entrepreneurs it’s very difficult to come up with unique business ideas in India. Hence regardless of what business you want to start, you will always have competition. Competition research is an important part of the business development process because it shows you what’s already out there, what people think about your business idea and most importantly, it helps you make decisions about how to build your business based on what works and what doesn’t work in the market. It paints a complete picture of what other companies are doing in your field, as well as competitors that may have already taken advantage of your idea. Competing against existing companies isn’t always easy because they can be bigger than you and have a lot more resources at their disposal, but if done correctly it can result in some great opportunities for growth and expansion!