How to Evaluate a Startup Idea Quickly and Correctly

The statistics show that 34% of startups fail due to a poor product/market fit. The main point is that most startups are under illusions about the importance and significance of the problems they solve. 

Starting a new business is always a risk. You can reduce it a bit and make sure the idea works using idea validation. 

How to validate your ideas before a rollout

• Study the market and realistically assess the chances of your startup
• Get the first feedback from potential customers
• Build a community of your product’s fans before a rollout

About the project:

A P2P crypto platform for international students, businesses, and migrants who need remittance services.

Challenges:

• Create a landing page, get traffic, and evaluate the demand for the product
• Learn the problems of the target audience
• Gather a focus group and conduct surveys
• Collect emails addresses of people who are potentially interested in the platform

Solution:

1. We set the goals of the landing page: informing, conducting the survey, collecting email addresses, and getting feedback.  Also, the landing page can replace a presentation of your product. The new landing page shows the idea as clearly as possible and describes the problems our product solves.

Besides, conducting surveys on the target audience was an important stage as well. In a nutshell, we checked whether the target audience was satisfied with our app, its features, and user-friendliness. We had to understand whether people would want to get their needs satisfied in the way we proposed (a future product).

2. Targeted advertising on social media works effectively to promote landing pages. We tested several target groups and creatives to find out what people are interested in.

3. Analytics about ad campaigns and survey results.

After the analysis, we:

• Described the target audience in more detail (gender, age, geolocation, and devices used)
• Found out what currency exchange options they use
• Identified the top three problems people face when exchanging currency
• Found out what alternative methods people use, e.g., crypto wallets

Business results:

Time and money are the most important resources for any business.

That’s why we did the following things:

• We had been conducting the experiment for two weeks (time-saving)
• We used a small budget, which answered the question “Do people need our product?” (money-saving)
• We helped make the decision whether to invest in this project because, before we spend our precious time and money on custom software development, we wanted to be sure that the idea was really viable (confidence in the idea)

The landing page is best used in conjunction with other idea evaluation methods. If you get positive results, consider developing an MVP. This way, you’ll get an understanding of the return on investment in the idea, taking into account development and promotion.

Let’s build a great digital product together!

If you plan to roll out your product as fast as possible.

If you want to get your product/market fit checked.

If you need a data-driven decision about investing in a startup.

Contact Broscorp — we know how to validate and implement ideas that are worth it.