When you want to test a new business idea, here’s what you shouldn’t do…
You shouldn’t start by thinking about how much you should charge for it.
And yet, I’ve seen most people do just that.
But here’s, the thing. Before you can know what your offer needs to cost, you need to understand two things:
First, you need to know what’s going to be involved in it. Meaning, what amount of time, energy and resources this offer is going to require from you…
And second, (even more important), you need to know if there's any appetite for your idea at all.
In other words, before you even start talking about pricing, job one is to get a sense if you’re on the right track.
Until you do that, you don’t have a viable business idea. All you’ve got is a hypothesis that needs to be proved true by the reality of your market.
And so, what you need to do is to go out and talk to people. And I mean real-life conversations. Even if it’s just 10 actual people, that’s going to be enough for you to see if there’s an excitement for what you’ve got.
Get a sense of their temperature about it. Do their pupils dilute? Do they start asking you more questions about it? Have them describe to you what would be a dream come true for them.
Then, armed with this first-hand insight… now you go out and start doing deeper market research. Because you’re not done yet.
See, even if all the 10 people you talked to are super excited about your idea, you still need to prove that your market is actually willing to pay for it.
The last thing you want is to end up with a business where people are excited about it in theory…
But nobody wants to pay for it.