How can I validate my business idea?
I want to start a web design & development company and my idea is to provide all-inclusive website packages for a low price, but I don't know if it is going to make me revenue and success. I want to validate my idea and see.
What are the tools for validating a new idea in such business? How can I be a good validator?
Sell your service to one stranger. That's the elementary principle. However, it is possible that the reason you may not be making a sale has to do with your selling ability than your actual service/product. So I would say have a salesperson try to sell your product/service on commission-basis. If one is unable to close a sale for you, you may need to rethink your approach or the product/service as a whole.
To make your business succeed you must be offering products or services that have a unique selling proposition. It depends on the value-added to the customer. All marketing agencies offer a web development service as part of their service offering. If a company has an in-house programmer (HTML Coder, Wordpress, PHP Specialist), with the current option available online, like Wordpress templates, a company can build a robust website with very limited cost.
If a company's product/services are exceeding the client's expectations and objective, you have a win. There no tool to validate an idea, it has to generate visible business results, else it has to be changed.
A company must focus on building a robust business strategy and a road map, an idea is in the inception stage only, to execute an idea successfully a clear strategic road map is the key.
Maybe at first try to collaboration with someone who can give you a customer or try to find your first client. For example, use for your first project an outsourcing company/agency.
Build a MVP
Take it to the End Users
If users want it then go and build it.
Doing it is the key. There is no tool, no "consultant" who can tell you if it will work or not. they can just refine it.
Resources on creating MVP : http://mobileappz.in/mobile-app-development-services/mobile-app-prototyping/
Check it out some general check list here,
Look for it
Build an MVP
Start building your identity
Hash a customer acquisition plan
Ill keep it simple, test it part time and see if people are willing to pay for the good or service. Nothing speaks to you like the market.
You have not said where you are based.
Firstly there are no tools to do this other than process, but there is no magic software that you enter your idea and it spits out “Success, Go and Do” or “Failure, Don't Do it”!!
If your idea is unique and no other business like it is around, then it is very difficult to do research. Your idea however is not unique so you can find plenty of examples to assess the chance of success.
We have been running a web hosting and web design business since 2006, so we can give you some insight to this sector.
There are hosting companies such as GoDaddy, Network Solutions, Hearts, Bluehost, etc. which are growing and huge hosting companies. They have massive infrastructure (OK, read costs), staff world-wide (Read More Costs), and offices/presence all over the world (Read even more costs). They are platform agnostic which means you can have any website developed by a 3rd party and have it hosted on their servers. Alternatively they can develop a website for you and host it for you with variety of finance packages. The upside is all this produces more revenue, but growth means management challenges, financing, regulatory issue, employment issues, etc.
You can also follow propriety platform models such as WIX or Squarespace. This means you have to develop your website on their platform and cannot move your website to another provider. They provide the hosting platform, software platform for website development (this is hugely costly business), as well as support, etc. However, this also required huge investment in development of the software, maintenance of the software (web technology is not static), infrastructure cost, support, etc.
There is a 3rd way which is to become a Reseller of ours! This means you do not have the cost of infrastructure as we provide this for you as a “White Label” product so your customers have no idea that servers are not yours. You provide the 1st line of sale and post-sales support, and we provide support to you so you can escalate any questions or issues that you cannot answer or deal with to us. This requires no capital upfront, no staff costs, no support cost, except what you pay us per website we host for you on our infrastructure (so no sales, no costs).
Contact me if you want to discuss this further and I would be delighted to help you come onboard.
First - share your ideas with Business champs who are already in this field.
Second - Read Blogs and case studies by successful entrepreneurs .
Third - You need to run your business for minimum 6 months to see some happening.
Are you asking how do you test a business idea, if so there are lots of ways you can do this, have you made a business plan, who our audience is and who you want to target. Also do costings on what you may charge for certain packages. Do you have an existing income or money reserves to help start the business for a website, advertising etc. What kind or individuals or organisations are you going to target, you could also see some feelers out there by calling or messaging companies or individuals any exploring their website and design requirements. If they are not interested, ask a few questions on their present set up and get some ideas.