A good business idea? Proof of concept
Every idea and decision should be well thought out. This is where the so called proof of concept comes into play. What this is exactly and what it is used for is explained below.
What is a Proof of Concept?
The proof of concept (PoC) is a demonstration of the extent to which a previously developed project can be implemented from theory to practice. In other words, a proof of feasibility for your business idea. It is a kind of process in which you try out and test your idea using various methods to check whether the plan you are pursuing is also realistic. Only those who pass this reality check should proceed further in their project planning.
Who should use a PoC?
Basically, a PoC is advisable for every start-up idea. The proof of concept is therefore interesting for anyone who is in the process of founding a company, regardless of the industry. Nevertheless, there are areas in which the PoC is most frequently applied. Here are two of them:
Especially in software development, user friendliness plays a decisive role.
When companies and start-ups are founded, it is not only the potential of the products and services that is examined, but also the competitiveness and the willingness of customers to buy in the respective segment.
There are three common methods for a PoC:
Direct implementation of the idea is the riskiest method for market entry. It is suitable for those who have the necessary financial means and are definitely not risk averse.
The small project
In this variant, your idea is tried out and tested in an already manageable market. For example, you can place ads or market your products and services using various social media channels or on your website. You can then integrate these findings into your business idea and check them.
Caution: With the so-called "test balloon strategy" you should not reveal too much of your ideas and plans. You could attract too much attention from the competition. What might happen afterwards is anyone's guess, especially if you are successful.
The safest method of a PoC is market research. For example, you can conduct surveys and involve your future target group directly in the project. Through analysis, you gain important information such as customer needs.
By the way: the market research method serves as an ideal preparation for the test balloon strategy.
It doesn't matter which method you choose in the end. Always make sure that you conduct enough tests that give you enough knowledge about the needs of your target group.
What is the optimal proof of concept?
We recommend that you get as much feedback on your idea as possible. You can do this by conducting all kinds of surveys. For example, you can start by involving your family or friends to find out how the product or service would be received by outsiders. You can also present your product at fairs or weekly markets to interact directly and personally with customers.
In order to build up a unique selling proposition, you should always carry out a proof of concept. The proof of concept saves you valuable time. It serves as tangible proof of the quality of your business idea. The market is now full of the most diverse products and services. New developments can therefore be associated with a very high risk.
Prosupo explores your business idea together with you in order to identify the possibilities and limitations of your plan at an early stage. Therefore, don't just rely on theory, but turn your idea into something alive. We will find the right method so that nothing stands in the way of your market launch and collect as much evidence as possible to show that there is a market for your idea.