Introducing new forms of innovation into your business model is super important for any business that wishes to continue to evolve, keep up with it’s competitors and remain relevant to their target audience. All innovation ultimately begins as a simple idea, but bringing that idea to life requires thoughtful and effective experimentation to accomplish a larger goal.
Here are some valuable tips that will help you test new business ideas in ways that will be better at determining the value of your new ideas.
Establish the constraints with which you will evaluate the new idea. Be thoughtful about this and stay with it, even if your experiment doesn't go the way you have hoped it would. If you say that you're going to test an idea, software, process or something else for three weeks, make sure you really mean it and follow through with it.
If you've planned well enough, what you may find is that your idea will be better served by conducting multiple smaller experiments. This gives you the opportunity to evaluate more effectively between shorter milestones and innovate more quickly.
Whenever you are trying to innovate or carve a new niche out for a business within your industry, an important first step is to always gather feedback from everyone on the team. Sometimes this means a minimally viable prototype of a product needs to be built, and sometimes it could just mean emailing a simple survey to the team about a new workflow process improvement.
Gathering feedback internally within your organisation from all employees regardless of title is a crucial piece of this process because it can shed light on potentially negative outcomes that may be overlooked by some team members.
The very essence of true innovation is uncertainty that’s what makes the results so special so obtaining as much intel as possible before investing too much into full production is crucial if you are wanting to succeed.
Split testing is a fantastic way to test your ideas without a commitment. Ultimately, this type of testing can be used on pretty much every aspect of your marketing strategy and user interface. It entails changing one or more elements of your campaign or design and comparing it to the original version. The goal is to see if your experiment gets more traffic, engagement or clicks when compared to the live version on your site. As you experiment with colour schemes, calls to action and offers, you will slowly fine-tune your business based on how people respond to your tests.
Define The Required Resources
It is crucial to understand the potential resources and timelines needed to bring an idea to fruition. Oftentimes, management teams can overlook shortages in development time or shortages in a number of new processes that will be absolutely necessary for a project to have a chance at achieving success.
By taking the time to spell out what resources will be needed, even for an MVP, the likelihood of success with the project can increase dramatically. In addition, management teams will be more likely to prioritize projects that are most synergistic with their existing resources.
Set A Budget
It is important to determine what a percentage of your budget you want to spend to test your new business idea. That way, all of your eggs haven’t been placed in one basket and you are able to judge success without messing up what is already working. It also enables your business to get client-side approval as well. You can than evaluate the results and decide if you want to double down on the strategy and continue using the new business idea, test a variation or determine it as nonviable for the time being. A separate budget for testing, research and development is a crucial to innovating thoughtfully and judging the results. You should also typically give specific time periods for these tests.