How to Test your Business Idea

Challenging Assumptions

It becomes remarkably easy to convince ourselves of the rightness of our ideas, especially when we are emotionally and professionally invested. While this passion provides focus and dedication, it can also lead us down a path of self-deception. How do we navigate this potential pitfall and ensure a more objective perspective?

How do you stop fooling yourself?

Alongside our inherent biases, a common challenge is unintentionally shifting the goalposts. To counteract this, adopting a scientific process becomes imperative. This involves setting clear hypotheses, defining tests, and conducting experiments. This approach shifts us away from opinion-driven decision-making to a method where everyone involved is aligned with the objectives and expected outcomes of the experiment. Whether formalized into a routine business process or implemented more informally for initial testing, the key lies in asking and answering three fundamental questions.

Implementing this three-question framework ensures a structured and scientific approach to idea validation. Regular incorporation of such tests can lead to the formalization of a robust business process. However, if you find yourself testing out this methodology for the first time, a more informal application is entirely acceptable.

Sue has been working hard to build a team and a business model, but she is starting to feel a little nervous. She wants to give her idea the best chance of success and she has a limited budget therefore she has to be focused on the job at hand. She has access to a User Experience (UX) person to help her create evidence for her business case. Sue wants to test her assumptions and get a better undertstanding of the competition in the market. But which market is she playing in?

Collaboration and open communication within teams at KELLERWATT spark ideas leading to groundbreaking solutions.

Testing the Market

In a previous blog, I touched on the technical approach to launch a new product called Technology Readiness Levels (TRL). There is the business equivalent called Market Readiness Levels (MRL) these also, range from 1 to 9 and beyond.

establish criteria for gauging the evolution of innovation from a concept to a tangible product or service. In the upcoming blogs, we will delve deeper into the intricacies of TRLs, exploring how businesses can leverage them to maintain transparency in evaluating their progress. Let’s return to the topic of motivation and examine why Sue has achieved success where others have fallen short.

Reducing Risk

Sue knows that as spending rises the risks need to be kept in check. In this unpredictable startup world, there are all sorts of uncertainties to deal with. So, to be on the safe side, Sue believes in diving deep into market research to truly understand our audience and the industry.

Sue has already tested the waters with a Minimum Viable Product (MVP). Sue is all about crafting a solid business plan, complete with numbers and backup plans, giving us a roadmap for handling any curveballs.

Having different ways to bring in money and getting advice from seasoned pros is like having extra eyes on the prize, according to Sue. Staying flexible and keeping things simple lets us adapt fast to changes.

Sue knows that building a business requires investment, and investment can be released at various stages in business growth. Sue is considering various income streams including, government, industry, investors and banks.

Contact KELLERWATT to learn more about innovation funding and how it works.

Creating a Culture of Innovation

KELLERWATT plays a pivotal role in fostering innovation. Cultivating a culture that values creativity, encourages experimentation, and embraces diverse perspectives creates an environment where individuals are motivated to innovate. For individuals to succeed, they need the support of managers and an environment that rewards ideas.

Conclusion

In conclusion, challenging assumptions require a deliberate effort to step back and objectively evaluate our ideas. By embracing a scientific approach and consistently posing these three fundamental questions, we create a pathway to unbiased, data-driven decision-making. This not only safeguards against self-deception but also paves the way for more informed and successful business ventures at KELLERWATT.

As KELLERWATT embarks on this exploration of innovation, let’s delve deeper into the diverse motivations propelling us toward creating a better tomorrow.