VALIDATE & RE-VALIDATE
This morning I attended a meeting of several hundred new “business dreamers” who shared their visions of products and services that they want to build into successful business. The first order of business was the introduction by each member present, each of whom were given about 20 seconds to state their product/service. This occurred at Arizona State University and is part of the Venture Devils program. Each of these new “business dreamers” will be assigned a mentor to work with them for a semester.
Some of the businesses sounded like they may work, perhaps because there were similar existing businesses already in operation. The majority were very innovative ideas that had not been tested or heard of before. I will be assigned between 4 and 6 of these new business groups.
Validation is the first thing that came to my mind. Is there a buyer for these new products and services? The most important questions for new businesses as well as existing businesses: Is there a buyer who will pay? The reason I added existing businesses to this validation process is because every business must continue to always validate what they are doing with their target market.
The validation process will not only determine if there is a market, but also what the market has to say about a specific product or service. This very important feedback will allow a business to stay abreast of their target market needs and to make changes as necessary.
The hardest part of the validation process for a new business that has not developed a product or service is to get prospects to put up some money for a future delivery. It does not have to be a large sum, even $5 or $10 towards a future purchase shows a lot more interest than just a statement , “Yes I am interested, come see me when you have a product/service.”
I believe that before money and time are invested in the development of a prototype, a website, and production started, the target market has to say, “I want to buy.” The validation process first requires the identification of the target market and then the “door knocking” to determine if the product/service will sell.
This is a brief summary of the overall validation process, and BizQuack will have a complete” how to” session on this topic in our education section in September.
“One can steal ideas but no one can steal execution or passion.” Tim Ferriss
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