Two questions should be asked for every business concept: do I meet the clients’ needs and can I monetize it? You are able to validate it easily without too much effort in under 24 hours. Wondering how? Here are the tips!
Eureka, scarfs for parrots! I will earn millions!
For the purposes of this article, I came up with an idea for a startup. I have a product with particular set of features, and thus — the benefits my client will get after buying. The company will earn money by renting scarves in the subscription system.
Hundredth monkey effect
Do you think your idea is unique? It’s a natural reaction. Unfortunately, according to the effect of the hundredth monkey, most probably someone else already came up with the same idea as you. Even the most original, often absurd idea should be checked and verified using public internet search tools, mostly Google. We should run some search queries, dive deeply in the their results and draw conclusions from that.
As you can see in the picture at this link, I found parrots in scarves immediately.
All it takes is a short research, which will allow us to initially validate our idea, market’s needs, potential customers and competitors and verify our assumptions.
Searching at the source
You can direct your next steps to forums and theme groups or to Quora-like websites. In places where parrot owners are staying, you can ask about the animals’ problems (for example, a parrot hoarseness) in the context of your offered product. I bet you will get the first users feedback on the idea very quickly.
Elements necessary for tests
In many aspects of life, we may have to spend either our own time and skills or our money. Can you spend one of these currencies on your idea? If so, you will need: visualization of your product, graphics, texts, videos, website and money for advertising campaigns.
Due to my skills, I make websites and web applications. It’s a little easier for me, but with minimum knowledge or with the help of a person with specific knowledge you can handle it as well.
How to get all materials cheaply and quickly:
- remember that you only want to validate your idea, so it is not recommended to spend too much energy on the details of the assets,
- use free graphic assets on websites such as Freepik, Vecteezy, Flaticon,
- check the offers at Fiver, where you will get the necessary assets and services for little money
- search for performers on groups on Facebook for graphic artists, coders. Remember that the recruitment process and implementation can extend the preparation,
- get the hosting and obtain relevant domain,
- search for free HTML or WordPress templates for the website,
- edit the template according to your needs and add the created assets.
Believe it or not, it takes just a few hours to get the “fake” website of your idea ready. In my case, I made a website that describes my solution and encourages potential customers to buy a subscription for my scarves.
Time to start testing
Based on my parrot startup, I will investigate how many people visit the website and then want to buy my product. When they try to buy, I will show the user that the service will be available soon and if user leaves an e-mail, I will inform him immediately about the sale start. With such a conversion funnel I will be able to check if there is an interest in the subject, then whether there is a demand for my solution, and also I will be able to build the base of the first customers.
I would use Google Analytics to track the conversion rate, users retention and traffic growth (you may first need to get yourself familiar with user analytics tools and metrics). Then, I’d install Pixel Facebook, Hotjar, and Yandex Metrics. Using the tools, I’d collect key information about my target group and the users’ behaviour on the website. And this would allow me to quickly and continuously improve website’s results.
But where to get traffic on the site? Using ads on Facebook or AdWords. Even a small budget is enough to test out the waters. I think that about 300 Polish zloty is enough to be able to experiment a bit. If you lack experience with advertising campaigns, ask someone for help or outsource this task to a specialist.
I will not answer the question, what are the signs of success, but after such a test you will certainly be able to assess if anyone is interested in your potential startup and whether the number of potential orders would put your company’s finances “above the line”.
Attract the investor`s attention
By presenting the results of your trial to the investor, you not only realistically show that you have an idea for a golden business, but most of all you will be in an elite group of people who transform their plans into reality and who are willing to pay for their ideas using their own resources and devote time to implement their own plans. You will show the investor that you fully believe in your idea and that investing in your product may be worth it.
I wish you all the best ideas for your startups!