So you come across this great idea for a new business, and you’re excited! You’re pacing back and forth in your bedroom, frantically thinking things through,validating how awesome your idea is. Once you’ve validated internally, you start telling people and usually their first reaction is around the lines, “Wow – that’s an awesome idea, I’ve wish I thought about that!”
So great, now you’ve validated internally and the people you’ve told also validate the awesomeness of your idea. You’re on cloud nine, nothing can stop you now. So you mortgage the house, quit your job and start your business right? Not quite.
Having a great idea for a new business is all well and good, but looking for validation on how “great” your idea is follows the wrong approach. You see, most people will agree that your idea is awesome. Whether they think so or not is besides the point. Having a great idea for a business isn’t what’s going to pay the bills or make you rich. Its not even great execution of your terrific idea. At the end of the day its whether someone is gonna pay you money for your product or service.
So let’s restate that, It is possible to have an awesome idea, and execute it flawlessly and still fail as a new business.
So how do you avoid this no-win scenario? Instead of asking people what they think of your new idea, ask them “Would you use this service?” Or “Would you buy this product?” Then if they say yes, follow up with “How often?” and then “How much would you be willing to pay?”
You’ll find that responses to these questions will be less enthusiastic than the “What do you think of this idea?” type questions. Also, discount anyone who answers “Personally I wouldn’t have a need for this, but I know of several people who would” If someone tells you this, then ask “Okay, how can I contact those people?”
And keeping digging until you find an audience of people who responses are along the lines “GOD YES! Where have you been all my life? I will pay you to build this product! I want to invest in your company! Can I be your co-partner?” Once you find multiple people who have money and wish they could buy your product/service right this moment, you’re golden. Your good idea now has value.
As you start your business and develop your product/service, keep in constant contact with your first customers. They want your product/service because they need it. They won’t have any problems helping you get to market.
Lastly, a word on the “if you build it, they will come” philosphy. You may be tempted to think “pft… this idea is so new that people will just have to experience it”. Perhaps, but more than likely not. Just think of all the movies that are released that are total flops at the box office. Movie studios have been playing this game for years, and even they can’t predict a win, so what chance do you have? At least movie studios can recover from their losses – can you? If not, make sure to find all the people who are going to be waiting in line once your product hits the market.
