Examples Of Business Idea Validation – Help From Anand Srinivasan

The following are some excerpts from 9 Entrepreneurs Reveal How They Validated Their Business Idea by Anand Srinivasan, April 29, 2014 from Entrepeneur:

1. Rob Walling, founder of the Numa Group andcreator of Drip, an email-marketing tool. “I wanted to find 10 people who would be willing to pay a specific amount for the product once it was complete. This forced me to not think about features, but to distill the idea down into its core value[: a] single reason someone would be willing to pay me for the product. I took that, and emailed 17 people I know, or had at least heard of, who may have shared the same pain. This way, I not only had my initial customers who could provide me feedback on the details of how Drip should work, I had the start of an early base of revenue I could use to start growing the product.”

3. Alex Brola, co-founder and president of CheckMaid.com, which runs an online on-demand cleaning service. “We actually validated [the idea] without having any cleaners to do the cleanings. We threw up a site, a booking form, a phone number, and ran some [pay-per-click] ads through Google and Bing, and saw what the conversion rate would be had we actually had cleaners.”

When you go to the CheckMaid home page, you can get a free estimate by putting in your zipcode. Then you tell them what service you want. And when I clicked on Get An Estimate, I got the message:

Sorry, you’re too far away!
Currently, we do not offer cleaning services in that location. However, we’re constantly expanding our team of cleaners, and should be in your area soon. We’ll send you an email as soon as that happens.

See also Checkmaid’s Locations and Checkmaid’s FAQs

Related: Use Crowdfunding to Gauge Interest for Your Idea

6. Rob Infantino, the CEO of OpenBay, which helps users discover local car-repair services. “I owe much of the validation process to Steve Blank,” who was an advocate of leaving the office. “After formulating the idea for this online marketplace, I got out of the building and spoke to potential users of the service. The idea needed validation by real users. Since I was planning to build a two-sided marketplace, I had to speak to vehicle owners and automotive service providers, both of whom consistently offered valuable feedback about their challenges, their needs and what they’d want to see. I built a working prototype and shared it with the same groups with updates along the way. This took months of work. Before I knew it, I had validated my idea and development on a real product was to commence.”

7. Andrew Gazdecki, the CEO of Bizness Apps, a provider of DIY mobile apps for small businesses. “We validated the idea by starting to go after clients as soon as we had our initial product up and running. We believed if we could sell it to the local businesses in the area we could sell to any small business. Landing our first few clients and getting them to pay for the product was extremely validating and really gave us the idea that we might be onto something big.”

Related: 10 Questions to Ask Before Determining Your Target Market

Related: How 5 Companies Built Their Client Bases

Resources:

(1) 9 Entrepreneurs Reveal How They Validated Their Business Idea by Anand Srinivasan, April 29, 2014 from Entrepeneur.

(2) Validate Your Business Idea — Quickly — With These 5 Steps by Peter Gasca, September 18, 2014, from Entrepeneur.

(3) Test Your Idea With These Simple and Inexpensive Steps by Adam Callinan, June 18, 2014 from Entrepeneur.

(4) How To Get Startup Ideas by Paul Graham, Nov 12, 2012.

(5) Schlep Blindness by Paul Graham, January 2012.

 

This entry was posted in Ecommerce, Marketing, Social Media Marketing, Software. Bookmark the permalink.