✅ How to Validate Your Business Idea

3 Steps To Validate Ideas So You Can Build A Service People Actually Want

Author

Gordon Simle
February 20, 2024

Onward Everyday
In Partnership with Beehiiv

Good morning.

Way back in 2012 and 2013, when startups and gingham shirts were all the rage, and camera phones were low-res, I was one of 160+ participants in Twin Cites Startup Weekend 4 and 5.

The challenge was to form small teams around the best business ideas, build the business in 54 hours, and pitch it to startup vets, investors, and competing teams.

One of the most important lessons learned was the importance of validating your idea, before investing time and money in building your product or service. Many entrepreneurs skip this part and ultimately struggle to gain traction with their new business or new service.

In this issue, we’ll solve that problem with three simple steps.

TODAY’S TOPICS:

  • Negotiate Like a Pro

  • Sisyphus and the Impossible Dream

  • How to Validate Your Business Idea

  • Transform Your Newsletter Goals Into Reality

Oh, and on a personal growth note, definitely watch Casey’s video linked below. It’s one of the best videos I’ve seen. He is a master storyteller, and the message is incredibly powerful. As someone who has run quite a few marathons, I appreciated the story even more.

Let’s get into it.

— Gordon

Everyday Insights 👀
Keeping you in the know

3 Steps To Validate Ideas So You Can Build A Service People Actually Want

Starting a new business or creating a new service within your existing business is an exciting journey.

It’s about finding that perfect match between what fulfills you and what others need. That's the dream, right?

How do you know if your business idea is something people actually want?

Well, there's a way to figure that out.

Knowing what people want means you're building a business with a clear direction and purpose. It’s the difference between offering something people may buy and something they can't wait to tell their friends about.

Plus, understanding your audience means you can serve them better, leading to a better customer experience and a more successful business.

Unfortunately, many entrepreneurs skip this step. They dive into building their business based on what they think is a great idea.

Without validation, you risk spending time, energy, and money on a service that might not resonate with your intended audience. 

Here are three steps to validate your business idea(s).

Step 1: Chat with potential customers

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Think about who is going to love your service.

Maybe it's busy families needing a break from house chores or fellow small business owners looking to up their content game. Chat with them and find out what they struggle with and learn what they believe their ideal solutions look like. It's like playing detective, but instead of solving mysteries, you're uncovering what your future customers really want.

This step gives you insights into their needs, direct from the source, so you can tailor your service so it’s just what they’re looking for.

By talking to potential customers, you're not guessing; you're gathering real, actionable information to create something that feels custom-made for your audience.

Step 2: Look at what they are already doing

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Take a closer look at your potential customers' current solutions.

What services are they using, and where do those services fall short? Observing their current habits and preferences gives you a blueprint for what your service should and shouldn’t do.

This step is where many entrepreneurs stumble. They focus too much on their idea without considering the competition or current market solutions.

Does anyone even need what you’re selling, bro? 😂 

Learning from the existing landscape helps you carve out a unique space for your service. It shows you exactly how to differentiate yourself and fill gaps others have missed.

Step 3: Give your service a test run

Before you invest time and resources to build and launch your idea, offer a mini version of your service.

Think of it as a pilot episode for your business.

This test run lets you collect valuable feedback and start building a base of supporters. It’s your opportunity to see how your service performs in the real world. That way, you will learn what unforeseen challenges you will run into and can adjust accordingly.

Again, this exercise moves you from theory to practice.

You’ll learn what works well and what needs improvement. Real-world feedback is invaluable, allowing you to refine your service until it truly meets your customers' needs.

Plus, this early interaction creates buzz and excitement around what you're offering.

When you follow these steps, you won’t need to hope your service will succeed; you are actively ensuring it meets a real need.

This method doesn’t just validate your business idea; it sets the foundation for a service that people will love and talk about.

Dive in, talk to your audience, observe, test, and iterate.

ONWARD TOGETHER.

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