While startups come in many shapes and sizes, span across many industries and focus on many different aspects, 90% of them have one thing in common – they fail.
One of the things startups can do to improve their chances of being in the 10% is run a proof-of-concept (PoC).
The benefits of a successful PoC are long-lasting and can touch on every department within the startup, from product to sales to founders, and even marketing.
Join us as we explore some of the the ways running a proof-of-concept can help a startup validate their product, increase brand awareness and improve overall chances for future investment and sustainability over time.
Product Validation Through PoC
According to fallen startup founders’ own words, the top reason startups fail is that there is simply no need in the market for their product.
Running a successful PoC gives validation that such a need exists and that their product can provide the solution. Confirming a startup’s value to the market gives different teams throughout the company the boost they need to expand the influence of their innovative technology.The top reason startups fail is that there is simply no need in the market for their product. Click To Tweet
For the product team, validation gives further insight into how the product behaves at scale. Running a PoC also helps the product and R&D teams examine the unique differentiators of their product, as well as understand the product limitations in live application. Proofs-of-concept are also important if a company is considering vertical expansion and wants to determine product validity in other verticals.
For the sales team, product validation is equally critical. By leveraging the success of a PoC, sales teams can calm hesitations potential clients may have. Sales teams can also use PoC success to target other companies in the same industry who might be persuaded to use their product once it is proven as valid and worthwhile by others in their industry.
Increase Brand Awareness
Startups looking to grow need to establish a strong brand identity. One way to do that is by leveraging their PoC success into a brand awareness campaign.
After a successful proof-of-concept with an enterprise, startups may choose to distribute the results through eBooks, digital campaigns or meetups. In doing so, not only are startups able to increase their access to potential customers, but they can also increase the brand identity value and establish themselves as a thought leader in their industry.
Leverage PoC Success for Investment
Startups can use the momentum of a successful PoC to keep running forward.
For early stage startups, showcasing results from a successful proof-of-concept may increase their valuation and help their efforts in securing future investment rounds. For a startups currently in or about to launch an investment round, a successful PoC can not only increase their value, but also convince on-the-fence investors that you have a clear product-market fit.A successful proof-of-concept is a great way to get your product noticed. Click To Tweet
For startups looking to increase their chances of acquisition, a successful PoC is a great way to get their product noticed as well as strengthen their connection to large enterprises who may one day become potential buyers.
PoCs Increase the Chances of Startup Success
Ultimately, startups looking to be a part of the successful minority need to do all they can to stand out and differentiate themselves from competitors – and that means proving their product has a market need and works in large scale.
The many benefits a startup gains post-PoC success include impacting the product and R&D teams, the sales efforts and even marketing campaigns, making a long-lasting impact on the overall chances of success of the company.
In order to further increase that chance, startups should not question whether or not they should run a PoC with an enterprise, but rather see how they can increase their capacity and run more PoCs with more companies in more verticals in the hopes of defying the odds.
Ready to get started? Here are 6 Simple Steps to Secure Your Next PoC