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 don't recognize and adapt, we fail. 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 that we have to identify and test our assumptions consistently.
Fortunately, there is a simple and quick way to test assumptions when evaluating your business idea. Let's get started.
Try to write down at least three.
Can you prove that these are reasonable 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 after testing your assumptions about your customers? (Scale of 1-10)
Try to write down at least three.
Can you prove that 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 that your assumption is correct? (Scale of 1-10)
Try to write down at least three.
Can you prove that this is a reasonable assumption by looking at a competitor's business, available market research, or current trends?
If not, can you test your assumption by talking to industry experts?
How confident do you feel after testing that your assumptions are correct? (Scale of 1-10)
Try to write down at least three.
Can you prove that this is a reasonable 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 that your assumption is correct? (Scale of 1-10)
As you go through the questions below, if anything 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. Suppose you can't find a simple way to prove or disprove a core assumption about your business. In that case, we will carry that assumption over into the next stage, "Testing your Idea." Some assumptions can only be proved or disproved by performing tests (more on this in the course "Testing your Idea").
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 indicate that it wants the core value proposition that the product or service promises. If you're not sure what your value proposition is, don't worry. We will help you discover it in the "Designing your Value Proposition" course.
Example: The world didn't know it wanted the iPod, but 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.
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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 don't recognize and adapt, we fail. 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 that we have to identify and test our assumptions consistently.
Fortunately, there is a simple and quick way to test assumptions when evaluating your business idea. Let's get started.
Try to write down at least three.
Can you prove that these are reasonable 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 after testing your assumptions about your customers? (Scale of 1-10)
Try to write down at least three.
Can you prove that 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 that your assumption is correct? (Scale of 1-10)
Try to write down at least three.
Can you prove that this is a reasonable assumption by looking at a competitor's business, available market research, or current trends?
If not, can you test your assumption by talking to industry experts?
How confident do you feel after testing that your assumptions are correct? (Scale of 1-10)
Try to write down at least three.
Can you prove that this is a reasonable 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 that your assumption is correct? (Scale of 1-10)
As you go through the questions below, if anything 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. Suppose you can't find a simple way to prove or disprove a core assumption about your business. In that case, we will carry that assumption over into the next stage, "Testing your Idea." Some assumptions can only be proved or disproved by performing tests (more on this in the course "Testing your Idea").
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 indicate that it wants the core value proposition that the product or service promises. If you're not sure what your value proposition is, don't worry. We will help you discover it in the "Designing your Value Proposition" course.
Example: The world didn't know it wanted the iPod, but 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.