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How To Test Business Idea Like App Idea Without Development?

Krunal Shah

Nov 14, 2022

7 min readLast Updated Jan 20, 2023

test business idea

Blog Summary: The idea of a new business or app is both exciting as well as challenging. Before moving further, one must do an analysis on -

  • Which features are necessary?
  • Is there a need for your app?
  • Are there any competitors?

Having an answer to these questions will give you an idea of how good your business idea is. Secondly, you must research the market before even moving a step ahead to test a business idea. Here we will cover all these in greater detail.

What Is Business Idea Testing?

Several business ideas come daily in our minds. But it's pretty essential to test business idea to turn them into success in the present market. In app development, you must test business ideas to understand how viable they are.

test business idea

Let’s say you have a business idea to create an app for food delivery. But unless you test it in real-time it will not be possible for you to understand how efficient it will be to serve the audience. The features like food delivery process, menu, order tracking, and others must be tested from the viewpoint of the present market trends, demand-supply, and other factors to test business idea or validate app idea and ensure its effectiveness.

See More: How to Transform Your Idea for an App into a Successful Business?

Validating App Idea

You need to validate app idea or test business idea, to get an idea of how big of a problem your app will be solving and whether it is actually worth it. Whether users are ready to pay for your product? If it is gonna be a success? Most of the young entrepreneurs don't have an idea about these questions and just bring their product into the market.

By validating your app idea, you are saving both your time and money. Rather than just giving it a go, have an idea of how warm the water is. Budgeting your time and money comes from the fact that when you validate your app idea, you get an idea about how well the product is suited to the market needs. Along with that, there comes other factors like the app position in the present competition, scalability, competitive advantages and others - that you can assess only when you validate app idea.

See More: Expert Insights: How to Start a Tech Business as a Non-Techie Co-Founder

Why Should You Test Business Idea Like App Idea?

Testing your business idea has several benefits:

1. Helps You Save Time And Money

Several entrepreneurs make this mistake as they want their product to be launched fast into the market, and thus, they do it without researching, thereby wasting time and money. Testing your business idea, on the other hand, helps you save your time and money significantly.

2. Gives You an Idea of the Market

Landing in the water and seeing crocodiles everywhere is a sign that your end is near. This way you are risking your company as well as your resources. By testing your business idea, you can avoid such risks and position your business better.

3. Offers an Insight of the Audience

Without knowing about the customer, how can one sell them any product? If you’re selling a toy to an adult, will it work? Thus, it is very important to have an insight into the customer requirements, needs, etc. which is possible when you test business idea.

See More: Have an App Idea? Guide To Transform It Into a Profitable Business

Testing Your Business Idea Like App Idea Without Development

Below are a few steps which help you test business idea like app idea without development:-

1. Prototype Testing

Whenever creating a product, it's essential to create a prototype of it as it gives users an idea of how the finished product will look and lets them test business idea efficiently.

Prototyping can be done both on pen and paper as well as digitally. Let’s have a look at both.

  • Pen and Paper Prototype

It is often used to create a paper-based model of the app screen. It is created using cardboard, stencils, etc.

  • Digital Prototype

It's a computerized prototype for your app. It gives a schematic view of how things will look in your app and makes things look real.

test business idea

2. Customer Survey

Analyzing your customer is one of the keys to test business idea effectively, whatever business it may be. If you don’t know who your audience is, your business is heading in the wrong direction.

One must be completely aware of the target audience, their key requirements and how to fulfill them, main pain points, demand patterns, behavioral patterns, average spending capacity and other relevant factors.

3. Market Research

Launching a product in the market without knowing about the needs there, is similar to going to war without any weapons. As happens in the war, the opposite army will kill you in such cases, and here the opposing army is the other similar apps (if they exist).

Test business idea

Let’s now talk about how one should conduct market research -

  • Is there a need for an app like mine?
  • What are the issues customers are facing?
  • How can I solve these issues?
  • Are there any competitors?
  • If yes, then how well are the competitors doing?

Having answers to these questions gives you an idea about the market. This way, you can launch your product into the market without much risks.

4. Competitor Analysis

Competitor analysis refers to looking at fellow competitors and knowing how well they are performing which plays a crucial role to test business idea. You need to have a look at what services your competitors are providing and what changes you can bring to it.

Analyzing the weak points of competitors and making them your strengths are the characteristics of a good entrepreneur. This way, one can get an edge over fellow competitors.

5. Creating an MVP

MVP is “the simplest form of your idea that you can actually sell as a product”. MVP or Minimum Viable Product is what can be called a dummy version of your app. To validate your app, MVP must do well.

Test business idea

Launching MVP with minimal features provides the customers with an idea about the app and for the entrepreneur, it provides an idea about what changes could be made and how to bring them into the final version.

6. Landing Page Creation

The landing page on a website is what attracts customers the most. Design a website for your app and create an engaging landing page that provides you with leads and doesn’t stop marketing it until you get the desired number of downloads or the goal you have thought for your app.

The landing page gives users an insight into your project, and even though you haven’t started the product development, you can show valuable snips of your project and pitch it to the user.

7. Marketing

You may have the best business plan in the world, but if marketing is not a part of it, you are doing nothing instead of wasting time and money.

How will someone know about a product, if it doesn’t reach them? Your product is useless if you aren’t promoting it. There’s a rule called 100/1000 rule which goes by: “devise 100 ways to market your product, implement them and in that process, and talk to 1000 people”. This way you get an idea of the market, what strategies work and what don’t. This helps you to improvise, thereby providing a great addition to your marketing strategy.

8. Continuous Experiments

After achieving the initial success, businesses often become stiff and don’t execute the necessary experiments which will help them take their business further. Not only are they stopping their growth, but their employees also develop a similar mindset. To prevent this and test business idea efficiently, you need to keep up with continuous experiments.

Your business can grow significantly once you adopt an experimental mindset. This mindset is the one that big businessmen have and if you also want to reach there, you must have this.

9. Five Whys Approach

One must adopt this process when launching their product to the masses. This approach has been adopted by several businesses and has helped them alot. Ask “why” to every customer, despite the fact whether they like the product or not.

For example, if they don’t like the product, ask them why they don’t like it, if they like the product, ask them why they like it. This can help your business reach new heights.

With new startups coming every day and most of them getting wrapped up within a year, one must think about what goes wrong with them, that they get wrapped up so early, even though their idea looks good on paper.

The main reason they fail is not ideating their business properly and just bringing an unfinished product into the market and finally, getting out of funds. These things have become a major issue. I hope this article will help you address this issue and will be extremely valuable for you if you are planning to test business idea.

Have a business idea or want to validate app idea, but don’t know how to pitch it to the developers, or how to start? Third Rock Techno got you covered!

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