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Business Strategy – With a Business Start-Up, Go For Proof of Concept Before Investing Too Heavily

The current “business model” for startups is the belief that you have to have an elaborate structure before you can start your business. New business owners spend the first months and years working on strategies that may actually only make more sense for established businesses. It has become common to invest a lot of time and money into various marketing infrastructures before the company makes a penny. The entrepreneur is basing all this spending on an unproven concept.

Many businesses never even get started, and they certainly never succeed. Before investing any further, consider some thoughts on your proof of concept. Here are some ideas.

1. Start simple.

Resist all the “conventional wisdom” about starting with a well-designed and fully structured business. What’s the easiest way to get started and prove your business concept is financially viable? How do you start now and measure real revenue and market demand as quickly as possible?

2. There’s nothing wrong with being a serial entrepreneur.

That’s what some business owners do — they’ve been known to throw as many things at the wall as they can and see what sticks. The only “problem” is that you stick with each attempt long enough to really test the concept. Don’t jump from one business idea to another and never succeed on any one.

3. Do not engage in more than one new business at a time.

Distraction is a recipe for failure. Pick a business and a business concept and stay focused on it. Commit and follow through. Choose the project with the highest potential – the one that excites you the most. Let it go. You know which one is right for you. Trust your instincts.

4. What is the easiest strategy you can use to sell this business concept?

How can you most easily generate business and income? What is the simplest and easiest way to sell the concept and prove – or disprove – its viability.

5. What standard do you want to set to prove to yourself that your business idea works?

What income goal does this require? How many customers do you have? How do you want the market to react? What milestones demonstrate your success? What do you need to see happen? How do you know it’s a winner? Write it all down and check in on your progress regularly.

6. What strategy will you use to prove your concept?

What actions do you have to take and what is the timeline for them? In order to prove your business concept, you must have a written plan, know what to do when, and follow your plan.

7. Follow through on your strategy.

Take necessary action when necessary. Adjust your strategy as needed. Consult your strategy consistently (weekly is recommended), re-evaluate it and modify as necessary.

If you’re starting a new business, keep it simple and prove your concept before overinvesting in something that won’t work. You don’t want to be another business failure statistic.

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