Avoid failure by quickly testing your biggest assumptions without spending any money.
Assumptions play a significant role in the success of any business. If our assumptions are correct, we succeed. If too many of them are incorrect and we fail to recognize and adapt, we die. Assumptions are good, and we constantly make and test new assumptions as we launch and grow our businesses. Strategies are built on assumptions. The most important thing to remember is to identify and test our assumptions consistently.
Fortunately, there is a simple and quick way to test our assumptions when evaluating your business idea. Let's get started.
If you aren't sure what your assumptions are, then go back and read our article "Identifying your Core Assumptions."
Try to write down at least three.
Can you prove that these are good assumptions by looking at a competitor's business, industry statistics, or current market trends?
Can you test your assumptions by going to a few potential future customers and asking them questions?
How confident do you feel that the assumptions you listed above are correct?
Suppose you can't find sufficient evidence to support some of your assumptions. In that case, you will have to design a minimum viable test (MVT). Keep track of all the assumptions you need to test, and we will walk you through the process in our article "Designing an MVT."
Try to write down at least three.
Can you prove this is a reasonable assumption by looking at a competitor's product, industry statistics, or current market trends?
Can you test your assumptions by going to your future customers, distributors, or partners and asking them questions?
Can you prove your assumptions by talking to potential manufacturers?
How confident do you feel after testing the assumption above?
Keep track of all the assumptions you still need to test.
Try to write down at least three.
Can you prove this is a good assumption by looking at a competitor's business, market research, or current trends?
If not, can you test your assumption by talking to industry experts?
How confident do you feel after testing the assumption above?
Keep track of all the assumptions you still need to test.
Try to write down at least three.
Can you prove that this is a good assumption by looking at a competitor's business?
If not, can you test your assumption by looking at similar businesses in other industries?
How confident do you feel after testing the assumption above?
Keep track of all the assumptions you still need to test.
As you go through the questions below, if a question we asked didn't help you prove or disprove an assumption, then you need to find another way of testing that assumption until you get an answer. Some assumptions can only be proved or disproved by performing tests. Keep track of all the assumptions you need to test, and we will walk you through the process in our article "Designing an MVT."
Side Note: Industry experts and market statistics have often gone against innovative ideas and business models. The important thing to remember if you choose to go against the "experts" is that while the market may not know if it wants your product or service, it should show that it wants the core value proposition that the product or service promises. If you not sure what your Value Proposition is, don't worry; we will help you discover it in the "Designing your Value Proposition" course.
For example, the world didn't know it wanted the iPod. Still, people loved their walkmans (portable CD players), and the iPod helped them get the same music more efficiently. Therefore the core value proposition of "taking the music you love with you" was delivered in a better way by the iPod than the Walkman.
Avoid failure by quickly testing your biggest assumptions without spending any money.
Assumptions play a significant role in the success of any business. If our assumptions are correct, we succeed. If too many of them are incorrect and we fail to recognize and adapt, we die. Assumptions are good, and we constantly make and test new assumptions as we launch and grow our businesses. Strategies are built on assumptions. The most important thing to remember is to identify and test our assumptions consistently.
Fortunately, there is a simple and quick way to test our assumptions when evaluating your business idea. Let's get started.
If you aren't sure what your assumptions are, then go back and read our article "Identifying your Core Assumptions."
Try to write down at least three.
Can you prove that these are good assumptions by looking at a competitor's business, industry statistics, or current market trends?
Can you test your assumptions by going to a few potential future customers and asking them questions?
How confident do you feel that the assumptions you listed above are correct?
Suppose you can't find sufficient evidence to support some of your assumptions. In that case, you will have to design a minimum viable test (MVT). Keep track of all the assumptions you need to test, and we will walk you through the process in our article "Designing an MVT."
Try to write down at least three.
Can you prove this is a reasonable assumption by looking at a competitor's product, industry statistics, or current market trends?
Can you test your assumptions by going to your future customers, distributors, or partners and asking them questions?
Can you prove your assumptions by talking to potential manufacturers?
How confident do you feel after testing the assumption above?
Keep track of all the assumptions you still need to test.
Try to write down at least three.
Can you prove this is a good assumption by looking at a competitor's business, market research, or current trends?
If not, can you test your assumption by talking to industry experts?
How confident do you feel after testing the assumption above?
Keep track of all the assumptions you still need to test.
Try to write down at least three.
Can you prove that this is a good assumption by looking at a competitor's business?
If not, can you test your assumption by looking at similar businesses in other industries?
How confident do you feel after testing the assumption above?
Keep track of all the assumptions you still need to test.
As you go through the questions below, if a question we asked didn't help you prove or disprove an assumption, then you need to find another way of testing that assumption until you get an answer. Some assumptions can only be proved or disproved by performing tests. Keep track of all the assumptions you need to test, and we will walk you through the process in our article "Designing an MVT."
Side Note: Industry experts and market statistics have often gone against innovative ideas and business models. The important thing to remember if you choose to go against the "experts" is that while the market may not know if it wants your product or service, it should show that it wants the core value proposition that the product or service promises. If you not sure what your Value Proposition is, don't worry; we will help you discover it in the "Designing your Value Proposition" course.
For example, the world didn't know it wanted the iPod. Still, people loved their walkmans (portable CD players), and the iPod helped them get the same music more efficiently. Therefore the core value proposition of "taking the music you love with you" was delivered in a better way by the iPod than the Walkman.
StacDek helps companies design strategies that drive long-term growth.
