Idea Validation: From Proof of Concept to MVP - Tools and Techniques
Idea validation is a significant component of the Customer Development framework, which was developed by the renowned figure in Silicon Valley, Steve Blank. Rather than constantly being reminded of the high failure rate of products, it is crucial to test the viability of our ideas before fully committing our company's resources. The ability to validate an idea early on can help us find traction for our product and avoid wasting time and resources on ideas that may not succeed. With that in mind, we need to answer the fundamental question:
How do we effectively test a business idea?
Without a solid answer to this question, we run the risk of burning through our resources without achieving successful sales or marketing outcomes.
What is Idea Validation?
Idea validation is the process of testing business ideas to understand their viability. It proves the market need and determines the target audience's willingness to pay. Without establishing a connection with real people, our startup becomes a money pit with no potential for successful sales or marketing efforts.
Alongside validating an idea, aspiring founders must also validate the potential buyers and the market. We employ three key steps to do so effectively:
Proof of Concept, prototyping, and Minimum Viable Product (MVP).
By utilizing these steps, we can determine the viability of our product and gather valuable evidence to support its success.
1.Proof of Concept
1.1. Proof of Concept
Search Techniques for finding competitors Many founders have an unwavering belief in the uniqueness of their business ideas. However, it is crucial to assess the proximity of competitors to our idea. Competitors’ existence can be a positive sign, indicating market demand. It is important to differentiate between a blue ocean strategy and a red ocean strategy based on what competitors are doing and how we can improve upon their weaknesses.
1.1.1 Search on Google
Using specific keywords For example, if we search "Autism AR" followed by "iTunes," we can find specific apps on iTunes (for iOS) or use "Google Play" for Android. By searching "Autism AR -yelp," we can exclude Yelp results and focus on competitors. Additionally, using "/" allows us to search within specific fields. For instance, "Autism AR /startups" narrows the search to startups in the field.
1.1.2 Edit.blekko.com
One valuable tool for idea validation is Edit.blekko.com. This platform allows founders to conduct in-depth research and gain insights into their industry and competitors. By utilizing Edit.blekko.com, founders can search for specific keywords related to their idea and analyze the results. This tool provides information about domains, traffic, paid searches, backlinks, display advertising, keywords, and main competitors. By studying the data provided by Edit.blekko.com, founders can gain a comprehensive understanding of the competitive landscape and identify areas for improvement and differentiation. This valuable information can guide the idea validation process and help founders make informed decisions about their business strategy.
1.1.3 Blog Search
By searching on blog platforms like BlogSearchengine.org or Crunchbase, we can find industry-specific blogs and relevant topics. This helps us discover indirect proof of a business problem and potentially connect with relevant leads.
1.1.4 semrush.com
SEMrush provides valuable information about domains, including traffic, paid searches, backlinks, display advertising, keywords, and main competitors.
1.1.5 similarweb.com
SimilarWeb allows us to search for websites or apps, providing insights into traffic, keywords, and sources of user acquisition.
1.2 Getting your first customer feedback
1.2.1 fivesecondtest.com
This platform enables us to receive instant feedback on websites or logos we've designed. Users look at the design for 5 seconds and answer questions we've prepared for them.
1.2.2 Proved.co
Proved.co is a paid tool where we create an account, describe our idea, provide basic information, set the number of participants we want, and have them answer a questionnaire.
1.2.3 Forum validation
Scraping forums and checking industry-specific platforms and resources can provide indirect proof of a business problem and help us identify relevant leads. Platforms like Reddit are a good starting point.
1.2.4 Interview customers
Instead of delivering an elevator pitch to customers, our focus should be on collecting objective feedback. We can ask questions about the relevance of the problem we aim to solve, the quality of our concept, and the strengths and weaknesses we should consider. Platforms like Quora or LinkedIn can be used to reach our target audience, and creating a survey using TypeForm is an effective option.
1.3 Create a landing page
A landing page serves as a valuable tool to acquire early followers, inform people about our product idea, and even generate revenue for future development. On the landing page, we can provide detailed information about our project, highlight its advantages, and encourage people to support it. This also allows us to gather users' feedback, gain insights into our target audience's opinions, and receive suggestions for improving our product.
Creating a landing page offers several advantages:
Cost and time-efficient setup
Compatibility with online ads
Easy testing and optimization
However, it's important to consider the potential drawbacks:
Low conversion rates (approximately 1-3% of visitors sign up)
Challenges in fitting all vital information into a single page
The risk of a cheap-looking landing page negatively impacting our brand image
To build a landing page, we can utilize user-friendly site builders such as Wix or Weebly. These tools enable us to create visually appealing and functional landing pages without the need for extensive coding.
In conclusion, idea validation is a crucial step in the journey of turning an idea into a successful business venture. By following the steps of Proof of Concept, prototyping, and MVP, we can effectively validate our ideas, refine our products, and increase the likelihood of building a thriving business. The Proof of Concept stage, involving competitor research, customer feedback collection, and the creation of a landing page, plays a vital role in understanding market demand and gathering valuable insights. It's important to approach idea validation as an ongoing practice, continuously adapting to changing customer needs and staying ahead of the competition. By embracing the concept of idea validation and utilizing the available tools and techniques, we can increase our chances of building a successful and sustainable business.
2. Prototype
Prototyping is an essential step in the idea validation journey. It allows founders to create tangible representations of their ideas, enabling them to gather feedback and refine their concepts. Here are some practical examples and tools for the prototyping stage:
2.1 Create Wireframes
Wireframes are simplified visual representations of the product's structure and layout. They help identify potential issues and gather feedback before moving into full-scale development. Founders can use tools like Balsamiq, Uizard.io, or UIHut.com to create wireframes with ease and precision.
2.2 High Fidelity Interactive Prototype
High fidelity interactive prototypes closely resemble the final product in terms of functionality and user experience. Tools like Figma provide a collaborative environment for founders to design and create interactive prototypes. This allows potential users to interact with the product and provide valuable feedback on its usability and features.
2.3 Make an Exploratory Video
Explainer videos are powerful tools to showcase the value proposition and benefits of a product. They effectively communicate what the product does and why people should consider using it. Explainer videos can be created even before the product is fully developed, as demonstrated by the success of Dropbox's initial presentation. While creating an explainer video has pros and cons, it can be a compelling way to engage users and build brand awareness.
2.3.1. Pros of Explainer Videos:
Simplify and explain the product or service in a simple and engaging manner.
Videos are often more appealing and shareable than textual content.
They can be easily shared on social media platforms, expanding reach and visibility.
Effective for branding purposes.
2.3.2. Cons of Explainer Videos:
Costly production: Creating a high-quality explainer video may require a significant investment.
Time-consuming: Developing a clear and concise message for the video can be a time-intensive process.
Complexity limitations: Explaining complex products or services in a short video may pose challenges.
Incorporating these prototyping techniques into the idea validation process allows founders to gather valuable feedback, identify areas for improvement, and refine their concepts before moving forward.
3.MVP
3.1 Concierge MVP
The Concierge MVP involves personally assisting customers in solving their problems. In this approach, a human replaces the automated components of the system. This method offers a close touchpoint with early customers, a better understanding of the required workflow, and it's cost-effective. To implement a Concierge MVP, founders must manually perform each function of their service, working directly with customers to gather feedback and shape the final product. A well-known example of this type of MVP is Food on the Table, which provided personalized meal-planning assistance. Here are the pros and cons:
3.1.1. Concierge MVP Pros:
No need for extensive development investment
Direct communication and feedback from real customers
Ability to collect valuable information with a small subscriber base
3.1.2. Concierge MVP Cons:
Requires significant time and effort to manually deliver the service
Strong salesmanship needed to persuade customers to try the new solution
Focuses on optimizing the core service rather than UI/UX aspects
3.2 Wizard of Oz MVP
The Wizard of Oz MVP creates the illusion of a fully functional product while relying on manual execution behind the scenes. On the front end, customers experience a seamless product, but in reality, the operations are manually performed by the founders. One example of this approach is Zappos, the online shoe retailer. They initially created a fake storefront showcasing shoes, while in the background, they purchased and shipped the products manually. Here are the details:
3.2.1. Wizard of Oz MVP Pros:
Quick and cost-effective setup of the MVP
Utilizes online advertising and social media to generate interest
Market response can be tested without creating the actual product
3.2.2. Wizard of Oz MVP Cons:
Requires considerable time and effort for manual service fulfillment
Customers may feel deceived if they discover there is no real product
3.3 Piecemeal MVP
The Piecemeal MVP combines existing software products to deliver a new service or product to customers. By leveraging other solutions, founders can provide additional value to their initial customers without investing in MVP development. This approach requires coordination among different products and may involve subscription fees. Here are the pros and cons:
3.3.1. Piecemeal MVP Pros:
Minimal investment required
No need to spend time developing an MVP
Can provide a differentiated offering using existing solutions
3.3.2. Piecemeal MVP Cons:
Coordinating multiple products may pose challenges
Subscription fees for third-party products may be necessary
3.4 Single-Feature MVP
The Single-Feature MVP focuses on a specific core functionality, offering a clear representation of how the customer would interact with the full product. It provides a cost-effective solution, allows for quick market entry, and offers the flexibility to expand the product later. The key is to identify the core feature that solves a specific problem for a targeted audience. Here are the pros and cons:
3.4.1: Single-Feature MVP Pros:
Focused on solving a specific problem for a specific audience
Quick product launch with relatively low costs
Potential for easy expansion in the future
3.4.2. Single-Feature MVP Cons:
Requires some investment in development
May require careful consideration to determine the most impactful feature
Choosing the appropriate MVP type depends on available resources, project requirements, and target market characteristics. It is essential to remember that the initial offering should be minimal and focus on providing value to customers. Rushing into launching a fully polished product without validation can result in wasted time and resources. Instead, founders should aim to test their concept and gather customer feedback through an MVP approach.
If you need assistance in planning and launching your MVP, we offer a free consultation where you can share details about your project. Our team can help you test your concept and transform it into a profitable software product in a short timeframe. Within a few weeks, you can launch the initial version of your product and start collecting valuable customer feedback.
Remember, the key to successful idea validation lies in iteratively testing and refining your concept based on real-world feedback. By leveraging the tools and techniques discussed in this article, such as Concierge MVP, Wizard of Oz MVP, Piecemeal MVP, and Single-Feature MVP, you can gain valuable insights into your market, improve your product-market fit, and pave the way for a successful business venture.
Embrace the MVP mindset, focus on delivering value to your customers, and stay adaptable to their needs. Through continuous iterations and enhancements based on customer feedback, you can maximize your chances of creating a product that meets market demand and drives your business toward long-term success.
Conclusion:
Idea validation is a crucial step in the journey of transforming an idea into a successful business venture. By testing the viability of an idea early on, founders can save valuable time, resources, and effort. In this article, we explored the concept of idea validation, with a focus on the Proof of Concept (PoC) stage, prototype, and various Minimum Viable Product (MVP) approaches.
During the PoC stage, founders can leverage practical tools and techniques to validate their ideas effectively. By finding competitors and conducting competitive analysis, founders gain insights into the market landscape and identify opportunities for differentiation. Gathering first customer feedback through platforms like FiveSecondTest.com and Proved.co helps founders evaluate the relevance and quality of their concept.
The MVP phase provides a tangible way to further validate the idea. Different types of MVPs, including Concierge MVP, Wizard of Oz MVP, Piecemeal MVP, and Single-Feature MVP, offer founders flexible approaches to test the market and gather valuable feedback.
By using wireframing tools like Balsamiq, Uizard.io, and UIHut.com, founders can create visual representations of their products and identify potential issues before development begins. High-fidelity interactive prototypes, facilitated by tools like Figma, allow founders to simulate the user experience and gather feedback on usability and features.
Explainer videos are effective in communicating the value proposition of a product, and platforms like Wistia and Vimeo provide avenues for sharing these videos to engage potential customers. Additionally, leveraging existing solutions and combining them in a Piecemeal MVP can provide a differentiated offering without significant investment.
Ultimately, the key to successful idea validation lies in continuous iterations based on customer feedback. By adopting an MVP mindset and focusing on delivering value to customers, founders can refine their concepts, improve product-market fit, and increase the likelihood of long-term success.
Remember, idea validation is a dynamic and iterative process. Embrace the tools and techniques discussed in this article, adapt them to your specific context, and continuously seek feedback from your target audience. By doing so, you can navigate the path from idea to market with confidence, increasing your chances of building a thriving and profitable business.
