Do you have a business idea that you think could bring the next big solution to the marketplace? Those are merely your assumptions. It’s until you test that idea that you can determine its viability.
It’s good to have ideas. The world revolves around ideas. They often say ideas are more powerful than guns.
It happens to be true.
Just look around and see anything that has ever been built if it wasn’t an idea from somebody. The computer I’m using to type this is a result of an idea. The website you are on right now was also someone’s idea.
Are they not more powerful than guns? They are. In fact, the world is shaped by the ideas of great men and women who live within us.
What is your next business idea?
Many ideas fail
Honestly, we all have ideas. They may be different ideas, but we do have ideas that could be the next big thing in the world.
Ideas are cheap. Everybody can have them. In fact, when you post on your Facebook profile right now that you want to start a business and hence need ideas, many people will give ideas based on their passions, interests, and expertise.
It’s easy to have an idea about something. Execution is what brings the whole difference. The difference between you and the person you want to be in the next five years lies in how you execute the ideas in your mind.
But if you dig a little deeper, you will realize that only about 50% of business ideas make it to the 5th year of operation. What do you think happens to the other 50%?
Well, there are a few reasons. However, the main reason is financial cash flow. Entrepreneurs don’t know how to manage their money. We talked about it a lot in this blog post. You might want to check it out.
But perhaps the second thing is that entrepreneurs don’t know how to test ideas.
How do I do it?
If you happen to be one of my clients, you know that I’m an analytical person. Yes, I know how to play the number game. I rarely make decisions based on my assumptions or theory.
You see, many people are not the same. What you think works well for you might not work well for someone else. If you assume that it will work out simply because it has worked for you, you are making a wrong decision.
It’s an assumption until you have the data
Launching the product and getting the concept is what proves that your concept works. Until the launch date, make reasonable assumptions, which might work or fail to work out.
Before posting this blog post, I had assumed that my tribe would want to know something about testing ideas. Now it’s until people begin streaming in that I can make it factual.
I will tell the number of visitors landing on this page per day, check their bounce rates and the click-through rate (CTR) to my offers and other pages.
It’s the same way when you are launching ads. Facebook allows you to input different headlines, test out different ad sets, and see which works.
That’s precisely what we do when running profitable ads. We don’t just begin with facts but test out ideas by reading the numbers once we launch them.
If you are into email marketing, the engagement and open rates will determine whether you should keep the email copy or change it.
So, the moment you understand that you are working with people who have different interests, opinions, and purchase behavior, it will be easy to test out your ideas
How to test out ideas
How can you test an idea?
I have some tips for you:
- Think about an idea
Of course, you need to think through an idea. You cannot wake up and do something you haven’t thought about critically.
Most of the time, an idea might take several years to execute. But during that time, think through all the strengths, opportunities, weaknesses, and threats to your idea.
Thinking about the idea will also draw that curiosity and drive to research the idea, meet people who can help shape your idea, and collect data to help you make profitable decisions.
- Make assumptions
Assumptions can help when testing out your idea. They help to develop the metrics and the objectives of your testing. It also helps to give a sense of direction.
So, have assumptions such as;
My audience might be interested in learning about automation since they are spending a lot of time fishing for leads, engaging, and closing them
They also would want to master branding since it will give credibility and boost revenue for them
You now have ideas and developed assumptions. The next thing is to build on what you have been thinking about.
It’s not easy to launch ideas. I told you about how it’s hard for people to execute the ideas in their minds. But you see how it brings the whole difference.
If you aimed to launch a product to your audience online, assemble all your business tools, and launch it.
Numbers will begin to trickle in once your offer is in their domain. If you launched ads, it would just be a matter of days before you have a ton of numbers to make a decision.
Measure your product or service launch based on the metrics. It’s the number that will determine your decision. If the metric was traffic, you could check out the number of people engaging with your ads
There are different metrics to measure during your launch. These metrics will help you in the final step of testing out your ideas.
You now have the data and have proven the right and wrong assumptions. How can you make the most out of the data you have?
Well, the answer is to optimize. Yes, refine the data to drop less profitable aspects and build on what’s working out.
With optimization, you can scale your marketing to higher profit margins.
And that’s how you test out ideas. I can summarize it in four steps; build, learn, measure, optimize.
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