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Oleksiy Pastukhov

What are the best methods for validating a new business idea?

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Whether you're a seasoned entrepreneur or someone with a fresh idea, your strategies for validating a business concept could inspire and guide others in turning their dreams into reality. Share your wisdom and learn from others!

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Suchai
For me, launching MVP product can kind of help on this.
Elena Tsemirava
The best method is MVP. It's not the cheapest and easiest way but for sure the most reliable.
Jagtar Singh
I will develop a landing page and implement a promotional strategy to attract visitors. Once visitors start arriving, I will focus on collecting their email addresses. To gauge the demand, I might consider adding a fake credit card form to assess interest. As someone who relies on data to validate ideas, I will closely monitor the number of sign-ups. If I receive 100 sign-ups, it will indicate a strong demand for the product or service.
Axel Wikner
@jagtarsingh2 What sort of ratio for visitors vs conversion would you look for? I'm launching a MVP in a few weeks time so would appreciate your input. We are currently manually recruiting beta testers before launch. How do you decide if your MVP is viable or not without much traffic?
Jagtar Singh
@axel_wikner What sort of ratio for visitors vs conversion would you look for I would look for the conversion for the 100 users Visitors - 100 Registration - 10 Conversion - 10% Usually, the conversion rate is 10% to 15% per 100 visitors How do you decide if your MVP is viable or not without much traffic? "Something is better than nothing" If your MVP only has the core solution to solve the user problem the conversion rate will be increased. Allow users to play with your MVP with a sign-up and sign-in page. This gives your users a picture that the product you have created is actually solving their problem Provide them with a Trial and allow them to play with your product and track daily, weekly, monthly and quarterly user behaviour Analyse the user behaviour with the free Google Analytics tool once you have enough data to track you will get an idea of what feature needs to be improved which will have a huge impact.
Axel Wikner
@jagtarsingh2 Thanks, appreciate it! To recruit those first 100 visitors I assume you would go for networking with your key personas? We have Analytics set-up in addition to MSFT Clarity, will be interesting to see what insight we can gather.
Maria Loleyt
B2C: Launching MVP and then taking the first 100 registered users and having interviews with them. B2B: Straight to CustDev interviews, as B2B tools ave very practical and functionality could be tested without any interface.
Julien Zmiro
Top Product
I think it's a constant dance between your level of investment and your level of confidence. What you want to avoid is investing too much when you have low confidence and so it's about taking small steps that don't require much investment but will improve your confidence. A good first step that is pretty much always cheap and can bring a good amount of confidence is to just chat with people about the problem you're focusing on. You don't even need an idea of solution, you just need to take the time to find these people and talk to them. After that you can start thinking about landing pages, prototypes, MVPs etc. The specific methods really depend on what you're trying to validate. For instance if you're unsure about the appetite for a solution, yeah maybe building a simple landing page explaining the concept with a waitlist is a good option. On the other hand if you're unsure about people being able to use your solution, maybe a prototype and some usability testings is the best option. The key thing in my opinion is to always be clear on the specifics of what you're trying to validate and to pick a method that will help you answer this specific point the best.
Anna Shults
For me it is custom development, interviewing your potential customers with right questions
Nirnimes
MVP is the best way.