Market validation is the process of determining whether your product/service is of interest, in other words how it would benefit a given target market. Market validation demands a series of interviews and evaluation of ideas or startup ideas with people in your target market, and it almost always takes place before you’ve made a consequential investment in your product/concept.Startup Ideas
Let us take an example where the daily passengers faced serious commuting problems since taxi services refused customers at their discretion. It was the dawn for Indian origin online transportation network company namely OLA. Ola offers services ranging from economic to luxury travel in all over the country. One can book or reserve a cab through a mobile app or website and the service accepts both cash and cashless payments with Ola money. This service is available at customers doorsteps and he/she can cancel the ride if needed, pool it with others to reduce the pollution and curb down the fare price and avail various exciting offers from time to time.
The main aim of the venture was to provide customer of different age groups to provide a hassle-free commuting service and their prospective customers were office goers, old aged people mainly. Though it operates under losses and faces cut throat competition with other foreign brands like Uber which operates on a large scale and is available in more than 700 metropolitan cities worldwide, Ola brings a whole lot of exclusive perks for corporate employees as one need to worry about rains, parking issues, and traffic anymore. One can share his/her ride experience, rate his/her trip and the driver, as customer satisfaction is of utmost importance for any businesses, the feedback from the customers helps them to deliver better service more conveniently. Customers often compare OLA fares with other taxi services before availing them. Ola is a Bangalore based start-up which has expanded to all the major cities in India diversifying their services after their successful launch in the potential market.
Startup Ideas 2019
There are various tips for using lean market validation to confirm whether you have a product/market fit with real customers or not. By simply engaging with the right people, asking the right questions, and fetching the factual data you can confirm if your idea solves a problem, who your potential customers are, and ultimately whether or not there’s a market for your product or service.
- Identifying the need gap – So many “wannabe entrepreneurs” think about the product first, as they fret about the features, the launch of the product, and then wonder why their product has trouble getting traction. Here comes the importance of identifying the need gap. In other words, it is being explicit about the problems your product resolves. Only after writing down the problem you should list and implement the possible solutions before moving on to the fabrication of the product. From here you tie the value of your product directly back to customer problems, like how does solve their problems make their life better?
- Identify your target group – Defining the target group is the prime most factor for any start-ups. The target market will show you the kind of customers you will market your product/service and eventually deal with. It is important to know their needs and align it with your product/service
New Startup Ideas
- Analyse your competitors – It is important to know your competitors and what they are doing. By following their ideas and the existing marketing trends develop your own strategy and marketing goals. It will assist you to gauge where you are at in the same niche market.
- Make a proof of concept, Iterate and prepare to build a prototype – Remember that building an actual prototype is not traction. If your customer research is initiating to unveil a secret and hint at potential solutions, spend your dynamism in improvising a prototype and testing it informally with users. Use mock-ups, templates, and shortcuts if you require. The goal is to get early feedback on many solution propositions, not to invest your time in developing new technology but to throw out amateurish ideas quickly.
- Get users and collect feedback – Always be courteous to your customers, they are the essence of your business. Listening to your customers and keeping an open ear will help you to evaluate and enhance your business. Make surveys and interrogate users to know your customer’s pulse and be able to address their issues and pleas.
Lastly, reach out to a business expert from your field and comprehend from them. You will build a good business domain if you have a guide who’s practically been there and done that. Having a business website is the gateway to your venture. Arobit Business Solutions Pvt Ltd provides functionalities and services which will help you to open your doors to prospective customers and let them know what you offer and how your business can help them with their definite needs.
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