Reduce Risk by Testing Your Ideas
To test a big business idea, you have to break it down into smaller chunks of testable bets. These bets cover three types of risk. First, that customers aren’t interested in your idea (Desirability).
Second, that you cant build and deliver your idea (Feasibility). Thirdly, that you cant earn enough money from your idea (Viability).
You test your most important bets with appropriate experiments. Each experiment generates evidence and insights that allow you to learn and decide. Based on the evidence and your primary insights, you either adapt your idea if you find you were on the wrong path or continue testing other aspects of your idea if the evidence supports your direction.
The Innovators Number one Task is to Reduce Risk and Uncertainty
Too many entrepreneurs and innovators execute ideas prematurely because they look great in presentations, make excellent sense in the spreadsheet, and look irresistible in the business plan. Only to learn later that their vision turned out to be a hallucination.
Test your ideas thoroughly, regardless of how great they may seem in theory.
Don’t make the mistake of executing business ideas without evidence.