Small and Quick Experiments

July 10th, 2012 | Uncategorized | SK | Comments Off

Recently, I was talking to my brother-in-law who also is a founder of a start-up. During the discussions a common topic came up of how to figure out whether a business will work. The answer we both had was – small experiments.

One has to remember that a business idea may sound great to the idea generator or to a few other people but it may not have any legs. The question that generally comes up is: how do you prove that the idea has value and how good it can turn out to be.

The best way to do this would be to conduct a quick experiment to figure out the feasibility. Software developers do this easily by building a quick rough version of their software and getting feedback from prospective users. However, it is difficult to do this in other kinds of businesses. In other businesses it can be done through market research: by talking to customers or comparing it will similar products.

This is more difficult in medical devices world but conversations with prospective customers (mostly physicians) as well as conducting surveys with them can help too.

There have been cases of companies that have just created a website with the product description on it. Then they ask people interested in the product to provide their email address. Some marketing about the website is done using Google Adwords and after a few months the data as well as number of people signed up is analyzed. The analysis provides the answer about the feasibility of the product.

Overall, small and quick experiments as well as market research can help prove the idea. Once proven, the team can work on the idea with even more energy.

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