Entrepreneurship in Action

Lecture 2 : Validation in action

How to validate a Business idea

Munir Hasan
Department of Entrepreneurship
Daffodil International University
 Look for it
Google it
Look for it in youtube
Before you even get wrapped up in an
idea, save yourself the time and do a
thorough search to find out if it already
exists.
 Look for it-2
What to do if you find it?
do not give up on your inspiration too
hastily. There are ways to improve on the
existing product? Can you offer value to the
business already producing it? Could
the market be satisfied better? If you
answered "yes," move to the next step.
Uber  Pathao bike
 Seek feedback
Talk to others about your idea, especially
people you trust. At this stage, what you
want is brutally honest feedback.
Entrepreneurs have a tendency to get stuck
in "idea lock," when they are hellbent that
their idea is a winner, regardless of what
others say.
If you are the only person who truly thinks
the idea is good, then it is time to reassess.
 Build an MVP
If your idea has support, then consider
developing an MVP to determine if it is a
product you and others would really use.
Channel your inner "MacGyver" and
build a working prototype, or look to a
resource that has the ability to leverage
newer technologies, such as 3D printing,
to help.
 Build an MVP-2
If you have a technology idea, such as a
smartphone app, look to crowdsourcing,
StartupWeekend, Hackathon, Boot Camp
to validate the MVP.
Use and test it and have others test it as
well. If it turns out to be a product that
you and your friends would never really
use, scrap the idea.
 Start building your identity
If your testing goes well and you feel that
you might have a winning idea, start
building a brand around it now. In today's
fast moving and innovating business
environment, an idea that is validated
today may be knocked off or even
obsolete tomorrow, so do not linger.
More importantly, unless your idea is
founded in a groundbreaking and
proprietary new technology, more than
likely it is already being conceived by
someone else already. It is off to the
races.
Don’t hesitate to expose your idea
Start by choosing a great name and
securing the website domain to create, at
a minimum, a sharp business landing
page.
Next, secure your business name with
every social-media site you can. Then
start leveraging these resources to build a
fan base.
 Hash a customer acquisition plan
Before you dive into a lengthy business
plan, focus on two questions:
"How do I get my first customer?"
"How do I get my n-th customer?"
You may have the best business plan in
the world, but without customers, your
business is nothing. Create a
thoughtful customer-acquisition plan and
marketing strategy.
 It is much easier to build a
business around a demand than
to build a demand around a
business.
Thank you