This archive report was first published on 2 December 2019.
As the economy slows down and emerging technologies disrupt industries, organisations are forced to rethink their strategies and adopt cost-cutting models. Some are laying off workers, while others are restructuring their business models or closing down altogether.
Against this backdrop, individuals and organisations are seeking ways to enhance their survival by developing business ideas that offer a competitive edge. However, not all business ideas are viable, and validating them before investing is crucial to avoid costly mistakes.
A student once had an idea to develop a drone to help farmers identify pests in their fields. However, before embarking on the project, he approached a target farmer for feedback and discovered that the farmer only needed a camera mounted on their aerial sprayer to collect the same data.
This saved the student the time and money that would have been spent on developing a drone. Many entrepreneurs fail to test their business ideas, leading to significant losses of time and money.
A business model can help test the desirability, feasibility, and viability of a business idea. Desirability involves understanding whether the idea is valuable to the target customers, while feasibility entails testing whether the idea is practical and doable. Viability, on the other hand, involves examining whether the idea can survive financially and sustainably in the long term.
While these factors are crucial in validating a business idea, timing and the team of partners involved also play a significant role in determining the overall success of a start-up.
