STEP 2: Here Is What You Should Do Next With Your New Idea
Welcome to the beginning of your exciting journey to getting your startup launched and funded! The following steps will walk you through a structured road map of how to get the market to validate your business idea, get real customers to fall in love with your brand, find investors, and attract investments from interested parties who may benefit significantly from your partnership.
Disclaimer: We won't sugarcoat that this will be a lot of work, even for teams of people and especially for anyone who may have a current job, is raising a family or both. Recognizing the value of your time and the importance of expert execution, we offer a lifeline to bring your dream to life without being overwhelmed. We provide a dedicated team of specialists to work by your side, transforming your vision into a thriving business while you focus on what matters most. With our comprehensive service, you don't have to navigate this journey alone. We offer a range of services, from fully launching your idea for you to crafting your sales pitches, creating investor-ready pitch decks, generating your business plans, or providing advice and guidance without any long-term contracts and only when you need it.
Click here to book your complimentary strategy session with a Launch Director who's as committed to your success as you are. Let's make your business aspirations a reality together.
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Also, if you’re impatient (like we are) feel free to skip to the end of each step for videos and resources to help you quickly absorb this information and put it into action!
Now that we got that out of the way, let's jump right into it!
MISTAKE #1: SPENDING MONEY ON BUILDING YOUR PRODUCT BEFORE CONFIRMING THAT PEOPLE WILL ACTUALLY BUY IT FIRST: USE DATA, NOT INSPIRATION (Step 2).
This step should be obvious but is still responsible for the number 1 reason new businesses don't get funded and ultimately fail. As hungry new founders, we believe other people must be interested in our idea solely because we like something, need something, or believe we are solving a big problem. While many people may feel the same way as you do or may experience the same problem you are trying to solve, it doesn't necessarily mean they will PAY YOU to solve it.
This is a problem that can be overcome very early in the process if the entrepreneur is disciplined enough to take on the burden of confirming if they are really solving a problem, providing a service, or selling a product that people feel strongly enough to part ways with their money in exchange for it.
Even if your new idea is mind-blowing, almost immediately after hearing your pitch, investors will want to know what data you have that can confirm your product or service will be profitable.
To investigate if your assumptions are accurate, you should consider creating a mock-up of your idea first and put together a list of questions to determine if a person is willing to pay you for your version of this product or service. There are many successful businesses that all began as some form of low-cost mockup (prototype) and the benefits of what you can learn by taking this approach are immeasurable. Forbes has an article here that could inspire ideas for your mockup.
To complete your mockup we recommend using a combination of all three if possible:
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Create a catchy flyer, brochure, wireframe, drawing, and/or a web page that sells your idea, but instead of collecting payment for it, you embed a link that requests their contact information. You then reach out and ask the interested person if they are willing to speak with you more about your offer.
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Then, go out and actively distribute your brochures both online and in person if possible. Social media can be extremely helpful in getting quick feedback.
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Use a firm, such as us this one, to find your demographic, issue the survey, collect it, and then deliver the research results to you.
Now this step is where you need to be careful NOT to ask questions that lead people to give you answers that you want to hear or that are not genuine.
For example, asking a person if they would pay X amount of money for your product because it is (insert valuable reason here) is an easy question for them to say "yes" to. Why? Because it is easy to say YES to anything. There is nothing that they are losing by telling you YES. But saying YES doesn't prove that they would pay money for it. Even if your product is a food or something artistic, you should be prepared to meet this answer with some skepticism. In contrast, if you were to ask a person what they are doing currently (if anything) to get the convenience, ease of use, cost savings, (or whatever value your differentiator provides) and the response is that they are buying something additional elsewhere or spending their time going through extra steps to gain the benefit that your differentiator provides, well then you have a good sign that they would pay money for it.
Caution: Your friends and family will tell you exactly what you want to hear, even if they do it unconsciously. People who are not as close to you or don't have a personal relationship with you will likely provide the best feedback. And, because it's also easier to lie to you than to tell you the truth, even complete strangers can still be likely to tell you what you want to hear and not what you need to hear, depending on how you ask your questions. In his book "The MOM Test: How to Talk to Customers & Learn If Your Business Is a Good Idea When Everyone Is Lying to You " successful entrepreneur-turned-author Rob Fitzpatrick discusses this concept very well and provides, in our opinion, some of the most effective strategies to craft your questions in a way that will get honest and valuable answers. And since this is one of the most critical steps in launching a startup, we recommend you invest the 3 hours and 50 minutes it takes to at least go listen to his book. You can purchase either the ebook, hardcopy, or audiobook here.
If you'd like to use a professional service to review your idea and craft high-value questions using professional methodologies from books like The Mom Test, we are here to help you. Click the link here, and we will email you a price and deliver your script in 48 hours or less.
Next, since you know what makes your product different or better, you should consider what types of people are buying products or services like yours from other companies. Think about where in your local community or online you may find people buying products or services like the one you plan to offer.
One of the easiest ways to do this is to think about you and your online and offline activities today. What forums do you visit? What websites do you visit? What stores do you shop at? What articles do you read and comment on? What news feeds do you visit? What groups are you a part of, both on and offline?
Put together a list of places where people frequently buy products or use services like yours.
Next, write a script that allows you to collect customer feedback in a non-invasive or "sales-ish" way.
It can be as easy as reaching out through direct message (D.M.) online, introducing yourself, explaining what you are trying to accomplish, and asking permission to ask them a few questions. You will likely be amazed at how many people will give you feedback if you ask nicely and save their time.
The example below is a fantastic script from a good founders beta article titled: "How to Validate Your Business Idea in Less Than 24 Hours." Consider customizing it for your business use case.
(Found here: https://www.foundersbeta.com/validation/how-to-validate-business-idea/)
"I am looking to interview entrepreneurs from the age of 18 to 29 for a school project to understand the challenges faced by young entrepreneurs in securing funding. The interview can be conducted online (Zoom) or in person at a Starbucks or any cool coffee shop of your choice.
What do I get?
45-60 minutes of your time via online meeting (Zoom) or in person.
What do You get?
– a $10 Starbucks gift card (out of my own pocket).
– a 15 to 12-minute chat about my strategic view of your venture, Harry Potter, Marvel, Games of Thrones, Paulo Coelho, or any fun stuff.
I am:
– a 2nd-year MBA student specializing in Technology & Innovation.
– an I.T. professional with 17+ years of experience specializing in cybersecurity.
Why should We do it?
To influence the change in government policy to ease funding for young entrepreneurs using these interviews in a study led by an entrepreneurship professor at a leading business school.
Why do I do it?
To work on an assignment that not only gets me my grade but also has a social impact. The alternative is to write an essay and just hand it in."
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HELPFUL TOOLS TO COMPLETE STEP 1:
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If you need help evaluating new startup Ideas, an excellent video can be found here:
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For help crafting Interview questions that will get you honest and useable feedback, grab your audiobook or physical copy of The Mom Test here.
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If you need someone to draft a great script targeted to your audience. In that case, Prelaunch Pilot offers cost-effective script-writing services as well. Contact us here, and we will email you a price and deliver your script in 48 hours or less.
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If you need a professional catchy flyer designed for just $25, find here.
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To create a catchy Brochure for just $25, find here.
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To create a catchy Logo using A.I. to generate it can be found here, or if you'd rather have a professional design, a good one can be found here.
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To create a landing page that sells your idea but collects contact information, you'll need the following:
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A domain name: You can find one here for just $0.99 for the first year and $ 21.99 for year 2
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Hosting: You can find a secure place to host your landing page and website. A perfect one can be found here.
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A landing page designed: Try these guys here.
4.) An email collection /marketing service to automate the capture and automatic replies. One of the best services is here.
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Here is a video to help you determine which option works best for you: Here