Four Tips to Test and Validate Your Business Idea
Entrepreneurs must before the idea of entrepreneurship and fulfil their business to test and validate the idea of business on their own and the profitability and future of this idea make sure. In this article, 4 tips for testing a business idea are discussed.
Many inventors and entrepreneurs have admitted that they have failed somewhere in their business world, but Richard Christensen, an entrepreneur and author of The Zigzag Principle (McGrill 2011), says that although it may be a failure in business and life, It seems like a lot of us don’t know how to fail effectively.
He sets an example for skiers to teach entrepreneurs. He tells them to deliberately deviate from the path to success to avoid devastating failures that could lead to their financial and personal destruction. Christensen said that when skiing if we love life, we don’t go straight down the mountain.
This approach is quite different from what most business schools teach. “In business, we learn to check before starting anything and set goals for ourselves and try to complete them, and then we are asked why only one in ten small businesses achieve their goals,” says Christensen. They achieve. “
Instead of moving towards your goals like a bulldozer, slow down and change your path, a process he calls zigzagging. This process not only contributes to the success of the business but also ensures that the failure is effective if the idea fails. Here are four tips for zigzagging.
Here are The 4 Tips To Test and Validate Your Business Idea
First, think about profitability To Validate Your Business Idea
Christensen advises new businesses to think about profitability in the first place. “Think of the fastest way to profitability, he says. He has run 32 businesses, all with $ 5,000 to $ 10,000. Eleven of them failed, but 13 achieved million-dollar successes. When you want to risk some of your resources, whether it’s in the form of a new business or a new idea in a well-established company, Christensen recommends spending 65 per cent of your resources on profitability and 25 per cent on resources such as employees. And 10% spent on development.
Make fractures efficient
If a business idea doesn’t work out in a specific time frame that Christensen usually sees as 3 months, he considers it a failed idea but an effective failure. The time frame of each business is different and depends on the amount of investment in the business. At least if they don’t make a profit right now, they won’t waste all that money and money.“
Read: Small business ideas for housewives in Pune
Focus on your goals
After making a profit (first zigzag), Christensen takes his business to the first zigzag, spending 65 per cent of his resources on employees, structures and procedures, 25 per cent on enlargement (development or franchise), and 10 per cent on spending. Profitability. Zigzagging continues with the resource allocation model of 10/25/65, which in business life revolves between profitability, resources, and growth.
Reduce speed To Validate Your Business Idea
While Christensen admits that companies that follow Zigzag principles will take longer to achieve their goals, he says that by clearly targeting the amount of capital, time and people who are allocated to the business, businesses will be able to achieve stability. Also, slow speeds can reveal some amazing surprises. “In this case, you will find all the golden parts of the path that will give you better business ideas than you ever imagined,” says Christensen.
