Test The Viability Of Your Tech Business Idea
Updated October 6, 2023
75% of tech startups fail, but with the right strategies, you can be part of the elite that succeeds in this incredibly competitive industry. Once you have an idea, put it through a series of tests to see if it has the potential to succeed. Of course, assembling a talented team, putting in the hours, and good fortune are all also necessary for success in business, but none of this will help if you have an idea which isn’t viable. So answer the three questions below, and be brutally honest with yourself about whether your tech company can take off.
Is There A Market?
The number one reason that tech startups fail is because there is no market need for the product created. According to Fortune survey, lack of a market need was cited by 42% of tech founders as the reason for their failure. Bill Gates once said that “success is a lousy teacher” and Silicon Valley prides itself on being full of failures. However, before you learn from your own mistakes, why not learn from the failings of others? Funding a business project is an important decision, so do you research. Check what market research has already been done, and see if your idea solves a problem that really exists. If you can’t find the research, then do your own. You need to empirically prove that there is a need not being met, or else accept that your idea is unlikely to succeed.
Is It Unique?
If you are a creative and innovative entrepreneur, you are probably having ideas all the time. However, just because you haven’t thought of something before, it doesn’t mean that no one has. It can be tempting to run with an idea and get started on it straight away, but have patience. First you need to determine whether your idea is unique. Developing your unique selling proposition will cut down the competition and give you the edge you need to succeed. By being first, you can protect your idea and prevent others from copying it. If you can do this effectively, then you just might be able to make it as an entrepreneur in the tech world.
How Quickly Can You Bring It To Market?
Once you have determined that there’s a market need for your product and that your idea is unique, you have more thing to consider. Technology trends shift fast. Something which might be in demand when you come up with the idea, may not be needed by the time you bring your product to market. If you think it’ll take a long time to get your company up and running, then the chances are that trends will have shifted so much that your product is no longer useful.
Testing the viability of your product is the most important step to ensure that you don’t waste time and money on a project destined to fail. Examine the market carefully, checking what customers want and what businesses are already providing. If your idea passes these tests, then get it to market quickly to increase your chances of success.