Product Idea Validation: Initial Steps
Validating product idea becomes utmost necessary so as to gain pure insights in regards to whether your product would sustain in the market or would be pure waste of time. As in the case of product development time element is crucial hence creators / initiators should take a close look at time factor while taking a decision regarding product creation.
Validating your idea is simple but a tiresome and a boring process. Hence i have compiled a clear step by step blueprint on how to validate your idea first before selling or rather i would say creating your product.
One should have focus on these 3 simple key metrics to take care whether your idea will pay for you in future or would lead to failure
- >> Potentiality
- >> Solution to a Problem
- >> Market
Let’s discuss these three metrics in depth
Potentiality means your own potential to create and run your product / service. If one does not have the potential to create such product / service in online business then one must Avoid doing such product.
I strongly believe that even if you don’t have a great domain expertise in a particular subject matter it actually sells in the market. Because the creator himself don’t know as his knowledge is known to other / prospective buyer.
Potentiality cannot only mean one’s own potential to create and run a business nor it means to downgrade once’s potential to do something. It simply means that are you capable of starting up ?. Starting up pays out with many things like you should have time, 10% of web design / technical skills etc.
Let me give you my own practical example,
As you all know i am a Microsoft Excel Professional and runs another website Exploring Excel. This website teaches one to master the skills required in today’s life. So when i thought of creating a product for this instance consider my best selling product “Excel Dashboard Course”. There was one point of time where i thought i don’t have that much skills to create Excel Dashboards. Here i don’t just want to create a course, i want to teach creating Excel Dashboards.
Don’t even guess when i thought about it. I just thought about it when i have completed over 80% of course recording. Imaging how fool i am !.
With this example i would like to convey just one message to you “NOT TO DOWNGRADE YOUR OWN POTENTIAL” as god knows when your potential counts.
Coming up to the next key element is a solution to a problem,
Solution to a problem
Did i not mentioned that “ Creators could sell product / services because their exists a problem ? “ Yah… thats the main part. You got it right !
When there exists a problem and leads ( Your Audience) are waiting for a solution thereon its the correct time to launch a product or a service.
You must be thinking regarding if we have a unique creation and there currently does not exists a problem right now ? What to do in this case..
Its as clear as crystal. Let me explain you this by an example. Did you know about the huge online video resource “YOUTUBE”. And should also know about some others like “Vimeo , dailymotion” etc. Who was the critical thinker regarding this idea: It’s simple “YOUTUBE”
So what you think did Youtube had a market at the time of launch ? The answer is big NO.. It was very difficult for Youtube to cultivate the habit of watching videos online and the biggest barrier at that time was Broadband speed. Over 70% of the user bounces back from a video if the video is buffering hence to sustain and develop that Youtube has to combine 3 most successful traction channels to increase their prospects. Which includes – Outreaching, Marketing and word of mouth goals.
And finally i arrived to the most important metrics i.e Market and this is the main turning point where either you can make it or break it.
Potential is an individual perspective as well as the quote “solution to a problem is also a term which is not rigidly defined. It differs from a niche to another niche.
So let’s get over to the Market:
In a short and simple sense i could say that validating your product idea begins from doing a market research. If you narrow all the situations down you would find always these 3 finding. I call it as “ 3 Key Findings of Market Research”
These three findings are
- Your fictitious product has a market as well as many competitors. (Quick Note: Competition shows a positive sign and NOT a negative sign)
- Your fictitious product has a market but less competition (Great Situation)
- Your fictitious product does not have any market. ( We need to think regarding this a lot)
Let’s start with the Case 1 and Case 2 the most common of all
“Product Having Market with Many / Satisfactory competitors”
That’s a normal situation. When your product has many competitors it’s proved that the product idea will be successful. Let’s talk this in youtube’s example perspective. Youtube has competitors in the category for “VIDEO HOSTING PROVIDER” they are Vimeo , Dailymotion , Amazon S3. etc
Just a quick note: Vimeo and Amazon S3 are not free wholly they charge on pay per use basis. (SaaS Concept) I use Vimeo as it’s comparatively cheaper than Amazon S3 in terms of video hosting and bandwidth charges. So what it makes to pay for these services:- Simple answer – it’s privacy settings. Vimeo allows me to hosts videos and also allows it to completely hide from vimeo even people having a url cannot see the video. The video can be seen only on a domain where i specify.
So let’s come to the point. Hence there is a competition but not a HUGE COMPETITION. Hence if i planned out to start up a video hosting company i should first :-
- Create a MVP (Minimum Viable Product)
- Add some additions to MVP
- Market my created MVP
That’s simple isn’t it ? Just 3 steps. But majority of people including me would get stuck in creating a MVP (Minimum Viable Product).
This covers the category 1 and 2. There Exists a thin line difference in Category 1 as well as category 2,
The most crucial category is Category 3:
“New Product, New Innovation but NO Market”
If you are in this stage thinking regarding the above statement then you should first go and validate your idea BEFORE CREATING YOUR PRODUCT
Imagine a situation where in you have invested thousands of dollars in a product development stage but when you launched the product you didnt had a single customer to pay for it. Sounds weird ? This has practically happened in many cases. So what one should do in this stage ? One should validate product idea doing a Market research.
So what strategies one should use the respective 3 Cases
Case 1: Do a Market Research
Case 2: Do a Market Research
Case 3: Do a Market Research
But for each of the above cases Market Research would be different and with variety of course of actions and tasks.
The specific reference to the above 3 situation would arrive when we do Market research and finding out target audience and setting up our marketing goals.
Key Take Away from this post:
- Why Validation of your idea is crucial
- 3 Key Metrics which enables you to decide whether to grab the opportunity or not.
- Fitting your product into the Exact blueprint of the Market research. (3 Scenarios)
Over to you:-
So I have explained pretty much in depth regarding validating your product ideas. It’s over to you to let me know these 2 things:
- Whats your product niche you are dealing in ?
- How did you validated your ideas.
In the next post i will walk you through how to clearly validate idea by outreaching with clients / Business owners / Your prospects.
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