The Essential Entrepreneur, 2nd Edition

CHAPTER 1Validating and testing your idea

We've all stood around the BBQ with family and friends having a drink and solving the world's problems, or at least coming up with lots of ideas on how things could be done better. How many of those ideas actually turn into something the next day? Realistically, almost none!

So, what if you put your money where your mouth is and give it a go? Where would you start to conceive how it could work? Did everyone agree it was a great idea? Is the timing right and would they pay for your product or service if it was available, and how much would they pay?

Is the idea novel (has it been done before) or are you just trying to improve on what's already in the market? Is the idea scalable or is it limited to just being a small business? What are the barriers to turning it from a small business into a large or even global business? You may be content with just a small business, or you may be ambitious and want to build a global business, so it's critical to consider how you would scale if that's your goal.

If you really felt inspired by people's reactions to your idea, then get online and start researching to find out whether anything like it exists, and if it does, how similar is it to your idea, and what makes your idea so much better?

Then test the idea out with other groups of friends to further validate and refine your thinking: you might even uncover some potential business partners. This initial ‘market research’ phase is critically important ...