It’s a valid question. If you haven’t even launched your business yet, you might be wondering if it’s worth it to invest in services when you might have limited resources and likely no backers as of yet.
Business professionals like you are driven to get their products or services out on the market. You just know your business idea is going to be successful. But do you really have any concrete evidence at this early juncture to show off to potential backers? If you can’t answer that question with a definitive yes, then you need to consider running a proof-of-concept pilot project.
There are many reasons to take a chance on proof-of-concept services. Check out below for a few of the most important benefits of such services.
A Measurable Trial Run
Even if you’re confident in your abilities to launch new products or services, your business idea still has a high chance of failure. Seven out of 10 businesses fail within the first 10 years, in fact. This statistic is tied to how capable you are of connecting with your target audience. Your business idea might be brilliant, but if you can’t find and capture your audience, you won’t get very far off the ground.
A proof-of-concept pilot project is just what it sounds like—a trial run that can practically measure how successful your business idea would be if you opened up shop tomorrow. An inbound marketing company can run this pilot project for you. The agency can determine whether you have an audience and learn exactly who sees value in your product or service.
With comprehensive market research, you’ll be able to adapt to the new way customers buy easily. You’ll also have the data you need to persuade backers to get onboard with your business pitch.
Get Your Numbers Straight Early On
An accurate cost estimation is key to your business idea’s feasibility. Such an estimation includes both what a customer is willing to pay for your product or service, as well as the costs needed to run your business. Proof-of-concept services can confirm not just your target audience but what pricing strategy is most viable for you.
Even if you’re the most prudent of business professionals when it comes to financial planning, there are simply too many unknown variables to determine an accurate cost estimation. A proof-of-concept pilot project gives you a snapshot of customer behaviour and spending patterns so your business will know how best to maximize profits and minimize costs.
Gain Genuine Support from Backers
You’ve probably watched shows like Shark Tank before, where the extreme version of pitching a business idea is on full display. Who were the most successful, or even memorable, entrepreneurs? They were the ones who were able to present undeniable evidence that their business ideas weren’t just pipe dreams.
Smart backers will give you their whole-hearted support if you already have a successful pilot project under your belt. In some cases, if your trial run was strong enough, you won’t even need to do much convincing as the project will speak for itself.
Finding business ideas that have proven value and a dedicated customer base isn’t a walk in the park. You and your backers both know that, and being able to present them with hard facts and figures is guaranteed to catch their interest. In some ways, running a pilot project is a strategy that both future-proofs your business idea and, at the very least, future-proofs your resources if the idea turns out to be unsustainable.
Consider proof-of-concept services if you’re ready to see if your business idea is all that you envisioned it to be.
Posted By Author Mike Lieberman, CEO and Chief Revenue Scientist
Mike is the CEO and Chief Revenue Scientist at Square 2. He is passionate about helping people turn their ordinary businesses into businesses people talk about. For more than 25 years, Mike has been working hand-in-hand with CEOs and marketing and sales executives to help them create strategic revenue growth plans, compelling marketing strategies and remarkable sales processes that shorten the sales cycle and increase close rates.