Too often, in the excitement of a new idea, people pitch headlong into spending serious money before really testing their concept. Here are ten simple ways to test your new idea before you've spent too much:
Ask a Friend
Get honest feedback from a trusted friend. Their unbiased opinion can save you time, effort, and money.
Ask a Customer
Show potential buyers mock-ups or prototypes. Involve them in your development process by presenting alternatives and gathering their preferences.
Advertise
Run an advertisement to gauge interest and attract inquiries. This helps you understand the potential market response.
Seek Editorial
Your new idea might be newsworthy. Approach editors of relevant journals to feature your concept. Their feedback and the generated interest will be invaluable.
Ask Ad Agencies
Consult with advertising agencies. Invite three agencies to pitch for your project. Their insights, questions, and creative ideas will refine your concept.
Street Surveys
Conduct street surveys to gather public opinions on your idea. Ensure you have permission if you're in a private shopping mall.
Focus Groups
Organise facilitated focus groups. These sessions encourage participants to think critically about your idea and provide detailed feedback.
Look Elsewhere
Research similar ideas being exploited elsewhere. Learn from existing examples to refine your concept.
Read Research
Explore academic research related to your business area. Academic forums and studies can offer valuable insights and data.
Just Do It
Sometimes, your instinct might be spot on. If you choose to move forward without extensive testing, ensure you limit your risk and monitor progress closely.
Large organisations spend large amounts of money researching new ideas and opportunities. Others simply set aside a 'risk budget' and do it anyway - the car market is a good example of this. Quite a few new car models are developed, manufactured, and launched only to be cut from the range within a year or two. This is a costly way to develop market share and one that small businesses can rarely afford to adopt.
Questions to Ask When Developing Your New Idea
How much will it cost to develop?
How big is the potential market?
What trends make me think that now is the right time?
How will I fund it?
What will it replace?
How many do I need to make to break even?
Will people repeat purchase?
Who might buy this from me when it's established?
What am I really trying to prove here?
Could I do it more simply?
Success Story: Naked Marketing
Having worked for two design companies since graduating, Ben found he didn't like the way people in his sector tended to use jargon to confuse the client and inflate the invoice. He recognised that integrity and trust were just as important as creativity in building long-term client relationships.
He decided to start his own agency with graphic designer and good friend Dave. They called their business 'Naked Marketing' because nothing was hidden from the client. Within a year, it was clear that people respected their openness and willingness to tell it like it was. They have many clients in the public and voluntary sectors and face a great future.
Their new idea was simply to communicate in words that non-marketers would understand. It was simple, they tested it with people they knew, and then followed their instinct.
By using these practical tips and taking inspiration from success stories like Naked Marketing, you can navigate the challenges of starting a new business and increase your chances of success. Remember, thorough testing and honest feedback are crucial before committing significant resources to your new idea.
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