Follow these proof of concept steps to validate your business idea before implementing using a proof of concept. It saves time & assures accuracy.
Hundreds of new businesses are launched every minute.
Consequently, the market is flooded with newcomers, making it challenging to carve a niche for yourself.
Although choosing the right market niche increases the chances of your success, the real potential lies in the concept behind your business. Because even if you build a product similar to the one that enjoys success, its market receptivity will still vary.
Therefore only your creativity and the idea behind your business can help you stand out and succeed in the market.
The competition in the market has made it a task to come up with a need-based that is unique. So, just coming up with one does not guarantee its success. That is why it is essential to test its market feasibility by following the suitable proof of concept steps.
What is proof of concept in business?
Proof of concept tests the practicality of a business idea and how likely the users will appreciate it.
Establishing this proof of concept is an intricate process and includes intricate steps. After carrying out the test, ideally, you should be able to get an insight into its potential market conditions. The test checks different parameters like its ideas, decisions, strategies, and methods to help you understand if a product should be implemented or not. Here are some easy ways to start with it.
Implementing proof of concept steps
A POC generally consists of two pillars – a concept and its proof.
The concept is in the form of a blueprint, MVP, or simple documentation.
And, the POC stage begins when you analyze goals on the key metrics to prove their feasibility by seeking feedback and working on test cases.
Understanding your audience
A well-laid business plan is the first step towards the proof of concept. Set a target audience and study its demographics to present need-based solutions to them. Further understanding their pain points will also check if the product resonates with them.
Once you understand your audience and know their problems, brainstorm all the ideas that can solve the said problems for them.
At this stage, you check the practicality of your business idea, its cost, and the time to market to see if it will be profitable.
Create a proof
When you complete the first two steps, you will have a concrete idea of what you are looking at, viz the concept of your project.
Now, you need to establish proof to establish its feasibility. At this step, create user stories and collect feedback to see how the users respond to the product.
Refine the product
After establishing the proof, you will have inputs from various sources on what goes well with users and what does not. Work on reinforcing the positive sides and improvising the weakness.
Further, in the initial proof of concept steps, you only work on the main features, so you can now bring in the additional ones and see their working.
The final call
At this stage, you will have a concrete answer – is your business idea feasible or not. If it is, you can go ahead and start with the development. Alternatively, work on the areas it lags for better results.
Why is POC important for Business Success?
Industry experts say that 80% of startups fail at the proof of concept stage, yet, planning and testing are the first things entrepreneurs cut out to save time and resources. This is a fatal mistake that can lead to the downfall. Definitive proof of concept in business will look to consider the following:
- Goals – Setting goals is the first step before you start working on your idea. You should know what you are trying to achieve and what values you offer.
- Team – The views of your team members play a significant part. Ask for their opinions and contemplate before moving any further. Your team should ultimately agree on its viability and the goals for the best results.
- Challenge Handling – When you start working on an idea, you should be prepared to tackle the problems. Ideally, you should be able to foresee the potential issues and have a redressal mechanism ready to minimize their effect and save time.
- Key Metrics – A subjective understanding of your business goals is not enough; you should have depth information about them in terms of data and figures. Identify the key metrics like time to market and budget and stick to them.
A proof of concept in business tests if your idea fits the market or not. It will also give you a clear understanding of your development process. Once you are sure about the market feasibility of your product, you can start working in alignment with your goals to present need-based solutions to the users.