Testing Your Business Idea

For years I’ve loved working with start-ups and early stage businesses. There are numerous reasons, including the uncertainty and the need to be able make quick changes as the business begins to unfold. You might wonder why I would like uncertainty. Well, I like it because it keeps challenging me to grow and learn. If you are starting a business or even trying to grow a relatively new one, you will find it more enjoyable and improve your likelihood of success if you learn to like or even love uncertainty and change and the challenges both present. Whether a start-up or simply a relatively new business, you will need ways for testing your business idea.

The Disadvantage That Once Existed

It was not that long ago that you had to invest a lot of time and money simply to see if your business idea was viable. Even then, when it came time to make changes it might once again require significant output of time and money. Now, we are in a new era and things have changed for the better, at least when it comes to launching and/or growing a small business. There are numerous advantages that did not exist not long ago.

Low Cost of Testing of an Idea

Here we are really talking about the cost in both time and money. With the advent of the internet, testing your business idea is now possible for a business concept, product, or marketing program without betting the bank. You can use surveys, send free samples of a product in return for feedback, or do numerous other things to test whether a product really has a market. Likewise, you can tryout an advertising campaign on a small basis to see if it will likely work before rolling it out on a grand scale. This could be as simple as using what is known as A/B testing for such things as an internet landing page. For example, ad A may take people to one page and ad B may take them to another page. By monitoring the resulting traffic and the time people spend on a page, you can assess which ad is the most likely to be productive.

Quick Change

Another advantage that now exists is the ability to make changes quickly. A case in point would be the ability to produce a small production run of a product for the purpose of seeing how well customers accept the product. Because it is a small production run, you do not have to invest so much. You have the ability to make changes based on customer feedback. Often this feedback can obtained with a follow-up email asking for customer opinions as to what they liked, didn’t like, and would like to see changed.

Are You Over-committing?

Are you betting everything that your business idea, product, or marketing and advertising campaign will work? If so, you might want to consider scaling back and taking advantage of some of the ways of testing your business idea before investing too much time and money.

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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