Last year, I embarked upon a personal challenge to validate a business idea in 30 days.
To make it even more difficult, it was a random idea chosen by my readers. They asked me to do it without using my existing website, traffic and business connections and without spending more than 20 hours per week on the project. On top of that, I limited myself to spending no more than $500 validating this idea.
The experiment was a success
In just two weeks, I built an email list of 565 subscribers without having an actual website. Then, I reached out to a handful of those subscribers and pre-sold 12 copies of a book that didn’t even exist yet, all in less than 30 days. I wrote about the experiment in real-time with in-depth weekly updates, successes, failures and lessons learned along the way, right here in my validation challenge.
Today, I want to share with you the five most effective ways to validate a business idea – quickly and without breaking the bank, based on what I learned through this experiment and from building several other businesses over the years.
1Join an online community
All great business ideas come from solving your biggest frustrations; the ones are also facing with similar obstacles. Want to uncover which problems you could get paid to help people solve? Join a topically relevant group on Facebook, LinkedIn or Slack, where members all have a shared interest.
Start asking genuine questions. Determine what their biggest challenges are in your topic area. Through these conversations, you’ll hear first-hand from your target customers exactly what they want. This gives you an incredible opportunity to create something more valuable, effective and unique to satisfy their needs in ways that others currently are not.
The logic behind guest posting is simple. Get a preview of your upcoming solution, the idea you want to validate, published and highlighted on a more popular website that already has your existing audience built-in.
Within your guest post on the same topic as the idea you want to validate, include links back to where readers can have the opportunity to learn more about what you’re building.
When I wanted to validate the idea for my first online course teaching people how to build a side business, I spent countless hours landing my first guest posts on blogs like Buffer, CreativeLive, The Daily Muse and other destinations, where I knew my audience was already reading.
Shortly after sending a cold email pitch to a writer at Buffer, my first guest post about finding meaningful work went live and in less than a week I’d amassed a couple hundred email subscribers that wanted updates on my course. The phone, email and Skype conversations I had with those early subscribers laid the foundation for the community I’ve grown and the products I’ve built.
If you’re willing to allocate a budget of $100 to $200 for driving paid traffic to your landing page through Facebook Ads, you can expect to get upwards of a couple hundred highly targeted visitors to come check out the idea you’re working on.
With a previous business, my partner and I were able to validate a brand new product line before investing in it. We spent $100 on Facebook Ads, collecting leads by offering a free downloadable guide.
Then we transitioned into phone conversations with those potential customers, before landing our first $5,000 sale in less than two weeks. If you’re ready to try out your first Facebook Ads, get started and do it right.
Choosing to run a contest or giveaway to help validate your idea can be massively successful in terms of growing your list of prospective customers, if you choose the right incentives to include in your giveaway. One of the most common mistake entrepreneurs make with hosting a giveaway, is awarding prizes that everybody would want to win.
Related: 10 Business Ideas Ready To Launch!
If you run a giveaway, the prize needs to be very closely related to the solution you’re planning on building. That means no Amazon gift cards or iPhones. If you want to host a giveaway to validate your photography-related website idea, start by asking what photographers want most, which could be a free subscription to Adobe Lightroom, a new lens kit or a coaching session with a well-known photographer in their space.
Then, make sure you’re using the right giveaway platform to help incentivise entrants to share with their communities. If you can get each giveaway entrant to refer five of their friends, you can quickly go viral and build a large interest list. The Kingsumo Giveaways plugin for WordPress has this incentivised sharing feature built-in.
Want to validate your product idea? Start by combing through reviews of related products on Amazon to see what existing customers like, dislike and complain about most. Focus on identifying the two and three star reviews, where the customers are somewhere between ecstatic and wildly unhappy with their purchase.
Then, click through to the reviewers profile and click the button that says show more; the vast majority of Amazon reviewers that don’t edit their default profile settings, so you’ll likely see an option to send them an email. Reference their review, briefly mention you’re building something similar that’s designed to improve upon the product they reviewed, and ask whether they’d be up for answering a few questions.
At the end of the day, to succeed in business you need to be helping real people solve real problems. More importantly, as serial entrepreneur and TED speaker Derek Sivers shared with me in a recent interview, “Start now, you don’t need funding. For an idea to get big, it has to be useful — and being useful doesn’t need funding.”
The psychological trap of needing more time, money, experience or other resources before starting to build a business holds many aspiring entrepreneurs back from ever achieving their dreams.
You have to work with what you’ve got. Start by simply validating your idea. The goal of validation is to give you relative certainty about the viability of your idea; it’s not a guarantee of success.
Validating your idea today will help prove that you’ll have a growing, paying audience of customers for the solution you plan on building, before you go out and create a finished product or service.
Without validation, you run the risk of creating a solution to a problem that doesn’t really exist. Begin without grandiose expectations and just endeavour to be useful to people today. Help them overcome their challenges, document what works and see where it takes you.
This article was originally posted here on Entrepreneur.com.
Put On Your Wellies: It’s Time To Wade Into Risk
Entrepreneurs aren’t all leaping into the unknown like lemmings off a cliff, but they do need to consider it…
You’ve had a great idea. You’ve looked into its development. You’ve recognised that it has potential beyond just what Auntie Mabel and Mike From The Grocer think. And you’ve clearly nailed a pain point that can make money. Now it is time to take the risk of running with it.
Every big idea comes with risk. You can’t step out into the world of entrepreneurial thinking and business development without it. Your idea may fail. It will also be time consuming, demanding, hungry for money, and hard work. It is unrealistic to expect that your project will leap out into the world and be an unmitigated success.
It is also unrealistic to assume that it isn’t worth taking this risk.
There are steps that you can follow to ensure that your risk is managed so you aren’t blindly leaping off that cliff…
Step 01: Do your research
No, canvassing your neighbours, friends and family is not doing research. You need to know that your idea will appeal to a broad market and that it will have significant legs. This may sound like daft advice, but you would be surprised how many people think an idea will take off just because Susan in Accounting said so.
Step 02: Understand the costs
Projects are hungry for money and investment. Realistically work out your budgets and how much it will cost to take your project off the ground and then stick to it.
A calculated risk is a far better bet than one that shoots from the hip and hopes for the best. You can also use this as an opportunity to draw a clear line under where you will stop investing and end the project. If it keeps eating money and isn’t getting anywhere with results you need to be able to walk away.
Step 03: Know when to walk away
As mentioned before, this can be defined by a line you’ve drawn in the proverbial sand (and budget) but no matter where you draw this line, you have to stick to it. Often, when time, money and energy have been poured into a project it can be incredibly hard to walk away.
You think ‘but I have put so much into this, just one more’ and then it gets to a point where the ‘just one more’ has taken you so far down the line that walking away feels impossible. Leave. Learn the lessons. Apply them to your next project.
Mind The Gap
The entrepreneur’s guide to finding the gaps and building the right solutions.
Innovation may very well be the key to business success but finding the gap into which your innovative thinking can fit is often a lot harder than people realise. Some may be struck by inspiration in the shower, others by that moment of blinding insight in a meeting, however, for most people finding that big idea isn’t that simple. They want to be an entrepreneur and start their own high-growth business, but they need some ideas on how to find that big idea.
Here are five…
It sounds trite but networking is actually an excellent way of picking up on patterns and trends in conversation and business problems. The trick is to note them down and pay attention. Soon, you will find patterns emerging and ideas forming.
2. Look for pain
Just as networking can reveal trends in the market, so can spending time reading. The latter will also help you find common business pain points. These are the touchpoints that frustrate people, annoy business owners, affect productivity, or impact employee engagement.
Be the Panado that fixes these pains.
This is probably the most annoying of the ideas, but it is unfortunately (or fortunately) very true. Luck does play a role in helping you capture that big idea. However, luck isn’t just standing around and random people offering you opportunities. Luck is found at networking events, it is found in research and it is found in conversations with other entrepreneurs.
4. Luck needs courage
You may have found the big idea through your network, a pain point or pure blind luck, but if you don’t have the courage to take it and run with it, you will lose it to someone else.
Being bold in business is highly underrated because most people assume that everyone is bold and prepared to take big leaps into the unknown. However, not all brilliant entrepreneurs were ready to throw their family funds to the wind and leap into an idea – they were courageous enough to figure out a way of harnessing their ideas realistically.
5. Pay attention
This is probably one of the most vital ways of finding a gap in the market. Often, people are so busy that they don’t really pay attention to that niggling issue that always bothers them on a commute, or in a mall, or at a meeting. This niggling issue could very well be the next big business opportunity. Pay attention to it and find out if that issue can be solved with your innovative thinking.
5 Things To Know About Your “Toddler” Business
As you navigate this new toddler phase of your business, here are five things to bear in mind.
Ah, toddlers. Those irresistible bundles of joy bring a huge amount of energy, curiosity and fun to any family – but there’s also frustration and worry that comes with their unpredictability, as they grow and start to become more independent. If you own a business and it’s successfully past its “infancy” of the first year or so, it’s likely it will also go through a toddler stage of its lifecycle.
Pete Hammond, founder of luxury safari company SafariScapes, agrees with this. “Our business is now three and a half years old, and we’ve found that we’re not yet big enough to justify employing a large team of people to handle the day-to-day admin tasks, yet we still need to grow the business as well,” he says. “As a result, our main challenge is finding the time to step back and see the bigger picture. Kind of like when you are raising a busy toddler and you spend most of your time running after them!”
As you navigate this new toddler phase of your business, here are five things to bear in mind:
1. This too shall pass
Everything in life is temporary – and that goes for both the good and the bad. It’s as helpful to remember this when you’re facing the might of a toddler temper tantrum, as it is when you’re facing throws of uncertainty in your business. If your new(ish) venture is going through a rough patch in its first few years, it can be easy to think about giving up – but don’t. As long as you have an overall big idea that you believe can add value to your customers, keep pushing through the rough parts until you come out the other side.
2. Appreciate what this phase brings
The toddler years mean that the initial newborn joy is officially behind you. But these small humans also bring their own kinds of joy, as you watch them learn new skills, say funny things, and give affection back to you. While your two-year-old business may not hold the same exhilaration for you as it did during those first few months, there are now different things to appreciate about it: Maybe you’re expanding your product range, or employing new people who can take the workload off you.
3. Establish boundaries
Toddlers thrive on boundary and routine – and your toddler business will too. As it grows into a new phase, try and establish limits in terms of the type of clients you want to work with and the type of work you’ll do. It’s also a good idea to make a decision about the hours you’ll work and when you’ll switch off, which will help you establish a good work-life balance.
4. Take a break
Every parent with a toddler needs a break every now and then, even if that means a walk around the block (on your own!), a dinner out with friends, or even a few days away. The same is true for a demanding small business: every so often, remember to take time out to rest properly, where you switch off your laptop and completely unplug. You’ll return much more inspired and resilient to deal with the everyday uncertainty that it brings.
5. Give it space to make mistakes
While the unpredictability of a young business can be stressful and tiring, it’s also a time for trying new things without the risk of huge consequences if they don’t quite work. After all, it’s much simpler to change your USP if you’re a small business employing a few people, rather than a big company where 50 people are relying on you for their salary, or where you’ve received a huge amount of investment capital. While you may fail in some of the things you try with your business (in fact, this is almost guaranteed), see it as a toddler that’s resilient enough to pick itself up, dust its knees and keep moving forward.
During this phase of business growth it’s also essential to have the right type of medical aid cover. There are medical schemes such as Fedhealth which has a number of medical aid options and value-added benefits to ensure that your health and wellness is taken care of too. After all, the healthier you and your staff are, the more productive your business will be – during the toddler (business) stage and beyond.
While this phase can be frustrating, it’s a sign that your business is growing and adapting, rather than remaining in its infancy, and that can only be a good thing! So embrace the difficulties, learn from them, and watch as your business strides forward confidently into the next exciting phase.