10-Step Business Idea Validation
Test and validate business ideas, moving from concept to Minimum Viable Product (MVP) efficiently.
Test and validate business ideas, moving from concept to Minimum Viable Product (MVP) efficiently.
Write a one-sentence description of your idea. What problem does it solve?
Keep it simple and focused.
E.g. "An app that helps busy parents find reliable babysitters instantly."
Define your primary audience. Who needs this solution the most?
Be specific about your audience.
E.g. "Working parents in urban areas.”
What makes your solution unique?
“For [target audience], who [problem], our solution [unique benefit].”
Focus on what sets you apart from competitors.
E.g. “For working parents who struggle to find last-minute childcare, our app provides a vetted network of babysitters available on-demand.”
List at least three assumptions about your idea.
Prioritize assumptions that could make or break your idea. Consider assumptions about customer behavior, pricing, and demand.
Outline your plan for reaching and engaging with potential customers. What channels will you use?
Consider where your audience spends time online. Think about partnerships, ads, and content strategies.
E.g. “Use targeted social media ads and partnerships with parenting blogs.”
Choose an experiment that will help you validate your assumption.
Keep it small and manageable. Consider A/B testing, surveys, or limited trials.
E.g. “Offer a 50% discount on the first booking to test willingness to pay.”
Define specific, measurable outcomes for your experiment. What will success look like?
Use SMART criteria (Specific, Measurable, Achievable, Realistic, Timely). Identify primary and secondary metrics.
E.g. “Success Metric: Achieve 100 sign-ups within 2 weeks.”
Execute the experiment according to your plan and document the process carefully.
Keep a detailed log of what happens during the experiment, noting any deviations from the plan.
E.g. "Record the number of sign-ups and track customer feedback."
After running your experiment, what were the results? Did they align with your expectations?
Look for patterns, unexpected outcomes, and significant data points. Be objective and consult with others if needed.
E.g. “Achieved 80 sign-ups, indicating strong interest but possible pricing concerns.”
Based on your learnings, what will you do next? Will you pivot, persevere, or pause?
Be honest about whether the data supports moving forward. Consider additional experiments if necessary.
E.g. “Next Steps: Adjust pricing model and re-test with a new audience.”