Startups

How to Validate a Business IdeaBefore You Start Building

Md Feroz Ahmed
Nov 15, 2024
7 min read
Business Validation

Starting a new business is an exciting venture, but it comes with significant risks. The graveyard of startups is filled with brilliant products that nobody wanted. This is why validation is the single most important step you can take before writing a line of code or spending a rupee on marketing.

Why Validation Matters

Validation isn't about proving you are right; it's about finding out the truth. It saves you time, money, and heartache by ensuring you are solving a real problem for real people who are willing to pay for it.

Step 1: Identify the Problem, Not the Solution

Fall in love with the problem, not your solution. Your initial idea is likely just one of many possible ways to solve a core issue. Talk to potential customers to understand their pain points.

  • Interview Potential Users: Don't pitch your idea. Ask about their life/work and the problems they face.
  • Look for Workarounds: Are people already hacking together a solution? That's a sign of a real need.

Step 2: Create a Smoke Test

A smoke test is a low-effort way to gauge interest.

  • Landing Page: Create a simple site describing the value proposition. Collect emails.
  • Pre-sales: Can you get 10 people to pay you before the product exists?
  • Concierge MVP: Manually perform the service for a few customers to prove the model.

Step 3: Analyze the Data (Brutally)

Be honest with yourself. If no one clicks your ad or signs up for your waitlist, don't blame the marketing. Blame the value proposition. iterate. Pivot. Or kill the idea and move to the next one.

"If you are not embarrassed by the first version of your product, you've launched too late." – Reid Hoffman

Conclusion

Validation is a continuous process, not a one-time event. Even after you launch, you should be constantly validating new features and directions. It’s the compass that keeps your startup steering toward value.


FA

Md Feroz Ahmed

Tech Head — Entrepreneurship Cell MJCET

Published by the Entrepreneurship Cell - MJCET.