Hello, boys and girls! Has it ever happened to you that you are about to fall asleep and suddenly a great idea comes to you? Yes, the kind that makes you think: “This is pure gold! Everyone is going to want this.” You wonder how you didn’t think of it before. The next day, before the sun rises, you are already calling your friends and family to tell them about your star product. Most people tell you it sounds great.
Six months passed and after investing $25,000 in that “idea of the century”, you ran out of money and only sold four things. What went wrong? Having a top idea does not always mean that you will have a successful business. In fact, many brilliant ideas end up just a hole in the bank account.
Now, how do you take your idea from being just that to becoming a real business? The first thing is to understand that more than changing it, you have to put it to the test. Ask yourself: Are there enough people who need what I offer and are willing to pay for it to sustain my business long-term? It is key to know if there is a market that really wants your product or service and that, on top of that, you can earn money by offering it.
What can we do to check if our idea is going to stick?
Study the competition. See what’s up with other products or services similar to yours. Analyze what’s special about your idea and whether it can compete with current prices. Is there room for something new and improved at the price you thought about?
Measure the market. Look at what group of people you want to introduce your product to. Think about how many people you think are going to buy it and if that market is growing. If the market is shrinking or there are other options taking place, you have to understand why.
Do focus groups. Gather a group of people who might buy your product and see what they think. The better you choose the participants, the more you can trust their opinions. If you do it several times, the better, this way you reduce the margin of error.
Calculate the costs. If you found a growing market that may be interested in yours, at a price they are willing to pay, ask yourself if that price allows you to make profits so your company can grow. If the answer is no, go back to the beginning.
The process of validating your idea is like a roller coaster for entrepreneurs, with plenty of stories of failures and successes. Every once in a while, someone manages to make it to the other side and succeed. Will you be the next?
Dare to dream, but also to put those dreams to the test!
By Juan R. Porras B
