Startup Idea Validation: Definition, Factors to Look For and How to Do It

One of the earliest things that must be done in setting up a startup is to validate the idea. The main goal is so that you can minimize mistakes and losses that you might experience.

Idea validation can be done by testing various ideas that you have got to match the target market. Ideas that are not in accordance with the target market will only result in losses, both in terms of time and cost. Therefore, idea validation is also considered as the most crucial step in establishing a startup.

So, what is idea validation and how do you do it? Check out the full explanation in this article.

What Is Idea Validation?

Idea validation is the earliest stage in setting up a startup. Quoting from the Viima website, idea validation is a process of collecting various information about the ideas obtained, through various tests to speed up, inform and minimize risk.

The main objective of the idea validation stage is to find out whether the ideas obtained can be applied to establish a startup that can survive in the market. This is because idea validation is useful for reducing risk, accelerating company growth, and minimizing time and costs.

To do this, you need to ensure a number of things, such as what the purpose of the idea is, what it looks like, and whether the idea is in accordance with the desired target market. With this, you can find out the problems that you might get from the start and find solutions to overcome them.

Factors to Look For in Idea Validation

Because of its quite crucial role, idea validation needs to be given proper attention. Quoted from the msmex site, there are 3 main factors that need to be considered in doing so, namely:

Desirability

factor desire aims to ensure that the products you offer can meet market needs and demands. Even if the product you offer is still relatively new, it will still be accepted, as long as it can be used as a solution to a problem.

Feasibility

While feasibility aims to understand the various components that you have that can support you in developing and implementing the ideas that you have. In this case, you must ensure that your business partners and resources can make this happen. With this, you can also determine the target you want to get more clearly.

viability

Final, viability related to business continuity, where you need to determine various decisions and strategies that are beneficial to support your business so that it continues. These decisions include short-term and long-term decisions by taking various considerations before deciding.

How to Validate Ideas

To validate an idea, you can apply the following six steps.

Share Ideas and Thoughts with Close People

Even though it is considered trivial, sharing your thoughts with others about the ideas you have is quite important. The reason is, you can find out the point of view of other people about your idea.

Apart from that, you can also get feedback from them so that your ideas become more mature. You can also find out how they will react before seeing how the public will react.

Do Market Research

Doing market research is one of the most important things you should do before developing your idea. Market research aims to help you find out what problems you might experience and how to overcome them.

Market research also aims to find out how your competitors are. You can evaluate their products, how they survive, and what reasons consumers choose their products.

In addition, market research is also useful for increasing maturity and confidence in the products you offer. That way, you can see the gaps in your product and what you need to do to fix them.

Launch Prototype Product

Prototype often known as tests launched before launching the actual product to find out the market response. With prototype, you can get feedback directly from people who have tried your product.

One effective way to find out feedback what you get is for launching a survey. You can find out their interest in the products you offer as well feedback-New.

Create Schematics on Haga and Timeline

If you are sure of the concepts and ideas you have, then it's time for you to start validating these ideas. One way is to create a price plan and a timeline for the future. Not only that, you can also predict how much profit you will get by doing this.

Market Your Product before Founded

One way to validate your idea is to test whether consumers will actually buy your product, even before your company was founded. If you can do the methods above successfully, then it's time to test whether potential customers will want to buy and use the products you offer.

Do Crowdfunding to Help Build It

The final step is to run a campaign through crowdfunding. You can use this method to connect with people who want to buy your product, even before the product is launched.

If this campaign is successful, you can start continuing your idea by continuing to produce the product you are offering. If you fail, then that means you need to make more adjustments because the idea is not good enough to continue.

So, that's an explanation of the idea validation stage in setting up a startup. Keep in mind that apart from validating ideas, you also need to implement and execute these ideas properly so that your business goals can be achieved more quickly.