New Founder’s Guide to Test And Validate Startup Ideas — TheCodeWork
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.
Reach out to us now to find out more!
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.
Can’t seem to figure out what market is the best fit for your product? Why not let TheCodeWork’s Startup Ecosystem team take a look?
Hit us up with any startup-related queries you might have!
2. Don’t compromise with market research
Now this is closely related to the previous point. But it is important enough to merit a whole new pointer of its own. Market research is one crucial step to test and validate startup ideas.
How so? Well, once you have identified your target market, it’s time to find out how much demand there is for your product. Market research allows you to quantitatively assess
- consumer demand, as well as
- the search volume concerning your product idea
In other words, you will be able to dig up some reliable numbers to gauge the interest of potential customers. Sounds good, right?
So, where do you begin?
As a new founder, tools like Google Trends and Ahrefs are a good starting point. These multipurpose tools can help you to determine
- how frequently consumers search for other products related to your idea.
- whether you’re working with a product category that’s trending right now, or one that’s hit a plateau.
I mean, entering a stagnant or declining market is probably the last thing you’d want to do, right? So get on that computer and get started on your market research as soon as possible!
Can’t wait to find out what the hype is all about? Check out TheCodeWork’s MVP Development Program to learn more!
3. Analyze your competition
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!
4. Pitch your startup idea
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!
Worried about the complicated fundraising process already? It doesn’t have to be that hard! Get access to exclusive fundraising and networking opportunities with TheCodeWork’s Startup Ecosystem!
Want to know how? Give us a call now!
5. Build an MVP
And now comes the most important step in your product validation process: building a Minimum Viable Product (MVP).
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!
6. Make some initial sales
Once your MVP ‘s out there, the best way to test your product is by making some initial sales. Nothing is more validating than customers appreciating the worth of your product and paying for it.
Am I right or am I right?
It’s crucial to make a few early sales because they
- demonstrate that there is interest in your product or service
- might increase press interest and investor interest
- assist you in determining the pricing strategy you should employ moving forward
- help your startup to gain momentum
So you see, those first few sales will serve you in more ways than one. Needless to say, you can also use it as a means to collect feedback from your customers for further improvement.
Yep, feedback is crucial at all steps!
7. Determine social media interest
Love it or hate it, you cannot undervalue the influence of social media in today’s world. And when it comes to testing and validating startup ideas, social media becomes doubly important.
Here’s why you should leverage social media to your advantage for your budding business
- It is an excellent way to connect directly with your customers, assess their interests, and gather their feedback
- You can also expand your market reach and establish customer loyalty through engaging media content
Now, I know what you’re thinking! Social media platforms can be quite confusing to navigate. So, here are some steps you can follow to make the process a whole lot easier:
- First, do a bit of research. Find the platforms which are best suited to test your product and reach your target consumers
- Share snippets of your product/product concept by uploading images, text posts, or even short videos. You can also engage the audience by asking questions or sharing polls
- Communicate directly with the interested audience and ask for their opinions
- Collaborate with social media influencers to reach out to a wider audience and create a buzz
- Analyze customer remarks: Take the customer feedback into consideration. Use it to make your product even better!
And voila! You’re all set to get people talking about your product in no time.
Still think of social media as some scary beast? Well, TheCodeWork’s Startup Ecosystem can help you come up with the most effective social media campaign-specially tailored for your business.
So stop worrying already and give us a call, now!
8. Launch a landing page
A landing page refers to a single web page that’s made specially as part of an advertising or marketing campaign. Its sole purpose is to convert visitors into leads. Pretty cool, isn’t it?
It typically consists of a form which visitors can fill out. You can then collect this visitor information (such as their email id) in return for an offer (like, say, a discount) you want to make.
Afterwards, you can use analytics tools (like Hubspot) to find out:
- What offer persuaded your lead to convert
- The time that they converted, and
- any other interactions they’ve had with your website
Armed with this information, you can then decide on your next moves, marketing-wise. Makes sense, right?
So this is your sign to add a landing page to your marketing campaign, pronto!
Need some expert advice on how to design the perfect landing page? You know where to find us!
Click here to book your free consultation with TheCodeWork’s Startup Ecosystem team 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!
And remember, should you need any help along the way, TheCodeWork’s Startup Ecosystem is always here for you to help you test and validate startup ideas
So click below to get on a call with our team now!