PROFUSE CONSULTANTS / PRACTICAL GUIDE

How to research a business idea before investing

Start with the assumption most likely to change your decision. A practical guide from Profuse Consultants.

PRACTICAL GUIDE

Start with the assumption most likely to change your decision.

Define the decision the research must inform

“Is this a good idea?” is too broad to guide useful work. Specify the proposed offer, customer, buying situation and commitment under consideration. Research for a two-week pilot is different from research for a new facility.

Separate demand from general interest

A growing market, social-media discussion or competitor presence may indicate activity. None demonstrates that your proposed customers will buy your particular offer at a viable price. Record the difference between an observed signal and an assumption about your own sales.

Build an assumptions register

List what must be true about customer need, willingness to pay, acquisition cost, delivery cost, operational capacity and repeat usage. For each assumption, note the available evidence, its limitations and the consequence if it is wrong.

Choose a test that can change the decision

If customer willingness to pay is the main uncertainty, another competitor summary may add little. A carefully scoped customer test or paid pilot may be the next useful step. If a supplier dependency determines feasibility, resolve that dependency first.

Decide what happens after the first stage

A useful research outcome could be proceed to pilot, change the customer segment, request cost inputs or pause the idea. Define the next commitment explicitly so research does not expand indefinitely.

A COMMON QUESTION

What is the difference between idea research and a business plan?

Idea research tests the assumptions that justify developing the idea. A business plan sets out how the business would operate and perform, often using assumptions that should first be investigated.

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