The Right Framework for Validating Startup Ideas

Validating or testing startup products is a crucial thing that ideally should be done first. If you are a startup owner who is just getting into this world, to realize existing business ideas without a series of tests or validations then you are making a big mistake. In short, validation early in the development phase of a startup can minimize failures, save time and materials, and help spot problems early.

Startups that have the potential to grow are startups that have a proven idea that can be put into practice. It's not just an idea and then a product is made without going through a test, then the startup that you build can be said to have failed in the early stages.

So how do you test or validate a startup idea that you have? In tips DailySocial this time the CEO of Capital H Labs and Co-founder of Bigcommerce Mitchell Harper will share tips on validating startup products correctly.

"Without startup validation, you will have a product that the market won't be interested in, which will end in disappointment and depression making it difficult to build a startup," said Mitchel.

Describe the problems and constraints

Overall validation or complete testing can be done if it has passed three different stages. If in the first stage the problem is not met, the solution is not met, or it is less crucial and not really needed, it means that your startup product is not comprehensive enough to offer.

Try to reach as many CEOs or founders of SME, retail and other businesses as possible. This can be done through Linkedin, define and create a list of your potential customers, then interact directly which can be started with an email. Of the 60 emails that you send, chances are only 20 to 30 will be replied to, if you get a reply and some potential customers are interested, schedule an interview by telephone, here are the important points when conducting a telephone interview:

• Find out the obstacles you face
• How annoying are the obstacles
• How have they been dealing with this problem?
• If there is a solution offered to solve the problem, are they willing to pay for the services provided?

From the results of the interview, it will be seen how much customers want to use the services offered. Avoid services that are only temporary or just trial and error so that they will not produce results repeat orders.

“Never create a startup that only offers a 'maybe used once in a while' solution, most startups like that will only be used for free, users don't want to make payments,” said Mitchel.

Determine existing solutions

Basically, if your startup offers services that have been offered by many other startup products, it means that you have quite a lot of market even though on the other hand you will get competitors who are much more experienced before.

But what needs to be considered is that if the product you have has no competition and the service is quite unique and new, you must also accept the fact that the targeted market does not yet exist. Apart from the need Branding and product education requires Yago's defensive effort further in the process. The point is to present a specific product is good, but it takes consumers with a broad enough market to compensate for this.

Offer more services than competitors

When the service is mature what needs to be underlined is: Is the service you provide better than the same players? Cheaper? More effective? Try to present the best solution, different that can not be found in other products. Knowing the potential that exists at the beginning before the construction of a startup can be a crucial thing and a moment that must be passed, so you can read market desires and create new, unique opportunities, and of course much better than other competitors' products.

Determine the fee to be offered

Make a comparison in terms of revenue, growth to income with other competitors' products. Try submitting the price offer to potential customers, accept all the input and add it additional items to support the overall cost offered. If the answer that most potential customers receive is refusing to pay the price offered, try to find out why, and describe the problem. From here you can conclude what a reasonable price to offer to potential customers.

Use the information to create The roadmap

If you have taken these steps and received positive answers from potential customers, it is enough to take the startup to the next stage. Keep potential customers who are willing to pay while testing is done and make them your first customers when the product officially launches.

Before you go any further, it's a good idea to apply the methods above. Validating is an important thing for a startup founder to do. If the idea has not been validated then your startup may be slow to develop or be forced to stop because it is not in demand or does not have enough market. If that's the case, pivots could be the most plausible way out. Steps that can actually be taken before spawning the product so it doesn't take up a lot of resources.