A step-by-step guide: How to validate IoT business model assumptions
For an IoT . If you can prove all your assumptions are right, you are well on the way to succeed.
How to do this? No worries, I have a step-by-step guide with examples for you:
Step 1: List your assumptions
I identified and listed three assumptions as to why I failed miserably at selling my stuff on the flea market.
Step 2: Prioritize the assumptions based on their impact
I prioritized them based on how critical each one is.
Step 3: Identify validation methods
I conducted user and market research to prove whether my assumptions were true, or not.
Step 4: Assign responsibilities & deadlines
On my flea market journey I was a “one-boy” show. But working in teams makes it necessary to assign validation tasks to team members with deadlines.
Step 5: Utilize the results to iterate or spin your idea
Having validated the assumptions, I used the results to choose the next suitable flea market.
Step 6: Keep going
Since the things I sell change frequently, I continually validate my assumptions to select the right flea market.
The last step is the most important one, because it never ends. You have to keep going because your product must continually evolve to stay competitive. In addition, when multiple assumptions are involved, it is quite likely that some will become wrong. That’s not a problem at all! Just make sure you use the results of your validation to persevere with your IoT business model. If that doesn’t work out, don’t hesitate to spin it early.
If you would like to learn which methods we applied in real IoT projects, sign up for our webinar on how to validate IoT business models!