Will your great business idea work? That’s the question every entrepreneur has before and when they get started on their business journey. Their intuition is one thing. But is it good? Is it enough? Answer is NO. But the good news is there is a path to find out. Lean Startup Author Eric Ries and many successful entrepreneurs will tell you one thing: Work with assumptions.
What is assumption-based approach to entrepreneurship?
In essence, it is very simple and straightforward. From the very early stage, when you have defined (or drafted) your Problem, your Solution and your Differentiator and that you already have identified your target market(s), you have consciously or unconsciously formulated some assumptions. Information or insights that define the relevance of your business idea but are not proven yet. For example, an ice cream shop in front of a school makes the assumption that kids like ice cream, and that parents are willing to buy their kids ice cream when going out of school.
Documenting assumptions is the first step.
Then, the overall objective of assumption-based entrepreneurship is to get reassurance that your business assumptions are right and leave no room for guessing. So, in the above example, before investing in an ice cream shop, the entrepreneur could investigate if other ice cream shops located in front of schools are successful. And/or they could try out a pop-up ice cream sale one day after school to figure it out.
How to get started with assumption-based entrepreneurship for your business idea
Truth is that it is quite simple. It all starts with carefully documenting your assumptions. But often we see entrepreneurs confused about what to do next to validate them.
So, that’s how the Business Idea Validation Toolkit was born! To help entrepreneurs identify their assumptions, define how they are going to verify them & document the outcome.
Here are the main ways our Business Idea Validation Toolkit can help you:
- It helps you formulate and group your assumptions that support your business model.
- It keeps track whether you validate or invalidate them and thus gives a trigger to validate or change your business model
- It gives you the confidence that you’re on the right track or gives you a timely heads-up to adapt.
Access the Business Idea Validation Toolkit here.
And If you feel a bit lost, keep calm. We have created a Video Demo to guide you through the process of your idea validation.