3 Questions to Validate Your Business
Not sure if your business will succeed? Ask these 3 questions.
Don’t waste time chasing an idea that won’t work. Learn how to validate your business concept quickly, avoid costly missteps, and ensure your next move is the right one.
Starting a business can be overwhelming, with so many ideas on how to make sure your idea will work. When I began my own journey, I read lots of advice from other founders about checking if your business idea is solid. But none really gave a straightforward example that showed what all successful businesses have in common. Here, I want to share the easiest way to check if your business idea will work—it's like the basic path every good business follows.
3 Simple Questions for Business Success
Ask yourself:
Can I get 10k visitors a month regularly? - Marketing
Can I convert 0.9% of visitors to paid customers - Sales
Can I make a profit with my business model? (revenue - costs = profits) - Finance
If you can answer all these questions with “Yes” - congrats you have a sustainable business!
Master Basics of Any Business
Yes, it is so simple! Any business is about attracting traffic and then converting these visitors into leads and ultimately paying customers. The goal is to achieve this at a cost lower than your sales revenue, so you end up with some profit that makes you happy 🙂
But Why 10k/mo at 0.9%?
Great question! I believe these two variables are the most important numbers to understand about your business. Unfortunately, I wasn't paying enough attention to them. What's more, I was overly optimistic about the results I expected from my business. These two numbers are crucial, and it's essential for you to determine yours.
How? Begin by researching typical conversion rates for your industry and, crucially, measure your own metrics as you refine your business strategies. This approach will help you achieve results tailored to your business model, ensuring profitability. To simplify this process, I've developed an intuitive business calculator to provide valuable insights into your operations.
👉🏻 Try Business Calculator 💰 📱
No business plan survives first contact with customers.
That is why savvy investors don't prioritize it at this stage—allowing us to focus our energy elsewhere.
In the future, I will provide more detailed explanations and examples for each of these points to further guide you. However, at this stage, our priority is to gain a deeper understanding of our business. We must focus on creating an initial pitch or proposal to gather valuable feedback from potential clients. This foundational step is crucial in shaping our approach and refining our strategies with numbers moving forward.
What about Delivery?
Delivery in business refers to fulfilling your commitments by providing the services or products you've promised to your customers. For simplicity, I skipped the "Delivery" part since you've probably mastered it, and it's usually the easiest 😉. However, in short: Yes! You need to ensure you can deliver on your promises; otherwise, people will request refunds and give negative feedback, which can harm your business in the long run.
It Can’t Be That Simple!
Indeed, there's much more to explore regarding each of these areas—Marketing, Sales, and Finance—as each is just the tip of the iceberg. BUT...
Decision Paralysis
Before diving deep into learning everything about these topics, which can lead to decision paralysis, I advise focusing on small actions you can take first to "validate your idea." This approach helps you progress without becoming overwhelmed or frustrated. Then in our further guides we will dive deeper into different Distribution Channels and basic Finance. For now let's keep it simple and high level, we still have a lot of to work on.
Ok, so where do we start?
Simple Plan to Validate Your Business
Define Your Business
Clarify your idea, target audience, and unique value to set a strong foundation.Generate Your Website with AI
Make it real! Quickly create a professional, conversion-focused website tailored to your business. To get first feedback and sales.Iterate and Improve Your Idea
Refine your offering based on customer feedback and market insights to maximize success.
The key is to take action and make your business real by crafting an irresistible offer and website for it, so you can share it with friends, customers, and anyone willing to listen.
The first goal is to make it tangible and gather initial feedback. That’s all! This step will provide invaluable insights from various perspectives, enabling you to refine your pitch before moving forward. What we're initiating here is one of the most profound concepts for building any company: the widely-used framework “Build → Measure → Learn.”
Build → Measure → Learn
We are going to use a powerful framework for iterating and improving your business ideas effectively. Here’s how each phase works:
Build: Start by creating something real—a basic version of your product, offer, or idea. It doesn’t have to be perfect; the goal is to bring your concept to life in a way that others can interact with it. This could be a draft of your irresistible offer, a prototype, or even a simple landing page.
Measure: Share what you’ve built and gather feedback. Pay attention to how people respond—what excites them, what confuses them, and where they lose interest. Use surveys, conversations, or analytics tools to collect data that shows how your audience interacts with your creation.
Learn: Analyze the feedback and data to identify what worked and what didn’t. Use these insights to refine your idea, improve your offer, or tweak your messaging. Then, repeat the process. Each cycle helps you get closer to something that truly resonates with your audience and drives results.
Let’s Start - Build!
Let’s turn your business idea into reality. In the next training, we will dive into Defining Your Business, so then we can Build it.
