Idea Validation for Your Business – Is It Important?

on September 30 | in Business | by | with No Comments

As an entrepreneur, looking to start your own business, you may have heard the term “idea validation” from your peers.

“Without it, you should not even think about starting your business, let alone entertaining the thoughts of growing and expanding your business on a large scale.”

For those of you, who don’t really know what idea validation is, allow me to brief you.

What is Idea Validation?

Idea validation is basically a process in which you work out the potential efficacy of your idea before molding it into a product or service form, and launching it in the market.

For that, you first conduct an extensive market survey; look for the insight of your fellow entrepreneurs; approach customers to see whether they will be interested in investing in it, and study the footprints of other businesses already involved in the trade of your conceived idea.

That is what idea validation is and that is how you approach it—at least if you follow the traditional rule book of business. Even Forbes endorses it.

The question is:

Is it really important as others have told you?

Yes, and controversially no!

Idea Validation – It’s Not What It is

Yes, the process of idea validation is important before starting a business but if you are going to approach it the classical way – it is NOT important! It is not even worthwhile.

Dear Forbes team, I don’t agree with that piece posted on your website!

And, I have enough points to make my case.

  • Market survey can help you gauge an idea of the market interest but that information is not enough to validate the harbored efficacy of your business idea. Marketing dynamics can change.
  • Speaking to people already in the business serving the target market would help you, but their advice cannot validate your business idea. What worked for them, might not work for you; what did not work for them, might work for you.
  • Approaching customers, and asking them whether they will be interested in buying your product or service once it is in the market isn’t a good idea either. Your customers don’t have to commit to paying. They only have to express their opinion. Are you sure what they say now, they will actually follow it up later with their actions?

Idea validation, as presented above, is not what it actually is.

Idea Validation – The One that Works

The real idea validation is about gaining insight on the potential efficacy of your idea through actionable data.

That actionable data comes with launching an MVP in the market, and then studying the generated response. With an MVP, you have a prototype that you can let your customers use; you no longer talk about the ifs and buts.

It’s right out there and whatever response you get is the one that will practically validate your idea, not theoretically.

So yes, idea validation is important but only if it is geared towards leveraging actionable data.

“You don’t learn to walk by following rules. You learn by doing and by falling over.” – Richard Branson

Do You Have Any Other Questions Related to Starting a Business?

Check out my blog resources and I am sure you will be able to find valuable actionable advice on how to start and build an organization. If you can’t find the answer to your question, feel free to contact me.

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