The secret of establishing hypotheses: entrepreneurial-scientist attitude

Did you know that the best entrepreneur is a scientist? The method used by these professionals to prove a hypothesis will be useful if you want to check the validity of your idea.

To know if something can have an impact on the world, it is first necessary to understand the environment around us. Glancing at newspapers, listening to songs, podcasts, or reading about any subject (there are many disciplines from which we can learn) will not only connect us more to our reality but will also boost our creativity, serve as inspiration, and improve our entrepreneurial mindset. The key is to absorb, like a sponge, everything that could be useful to us. Among the frameworks that will most benefit our entrepreneurial project is the scientific method. Through processes similar to those used to prove a hypothesis, you can check whether your ideas would have a real impact, require a different approach, or should be discarded altogether. Back to square one. This way of validating a project is very useful for confirming its potential success; it avoids unnecessary expenditure of energy and resources. To do this, the first step is to structure a hypothesis. In entrepreneurship, this framework is commonly used:

1. I believe that (description of the idea or prototype)...

2. for (customers you are targeting)...

3. will achieve (outcome of implementing the idea).
   

How to check the validity of the hypothesis Once the hypothesis has been defined, a series of steps must be followed to check its validity.

Review the hypothesis

Check that, in addition to proposing a realistic solution to an existing problem, said solution has not been tested before. In the scientific field, there are publications that guide specialists to verify that their hypothesis has not been proven. Unfortunately, in the world of entrepreneurship, there is no such literature (and even less on failures, since success stories are usually the ones discussed). To stay up to date, read as much as possible and keep track of publications on the subject of your idea. It is possible that a company may have already come up with a similar project to yours (ideas, especially if they solve real needs, are not usually that original), which is why it is important to conduct a market study before diving headfirst into developing your startup. Confirm that you have something new to contribute: perhaps your proposal is more effective, smarter, or more attractive. Here’s another tip for this point: from the very early stages of your venture, it is essential to have a clear identity, a story to tell, and to define a way to interact with the world. This will leave a mark and make your project memorable. To review your hypothesis and strengthen it, it is highly recommended to create a Value Proposition canvas and check what your idea actually brings to future customers. This will help you quickly identify what needs they have and how your project will meet them better than other existing solutions on the market.

Off to the lab!

Time to test the hypothesis we have defined “in the lab.” In our case, we are going to create a Minimum Viable Product (MVP) to see how potential customers react. To ensure everything works, we will conduct a series of tests prior to our real market trial; this will help refine processes and check the usability of our product, especially if it is digital. Once the steps have been perfected, we will launch the product in a controlled environment and, in this way, check its level of acceptance among the target audience. These experiments are usually conducted from two perspectives:

• Quantitative. We will test acceptance among a controlled audience, for example, a sample of 200 people.

• Qualitative. We will see if the public responds well to the idea and accepts it as valid.
  

For this phase, it is ideal to establish a time period that allows you to control the process and decide whether it has been successful.

• Measurement
  

The scientific method is based on measuring and verifying, so it makes sense that we trust metrics and consider them essential for knowing whether our idea will succeed (or to discover what is failing). In the case of digital products, these metrics will be KPIs, number of downloads, or interactions. If we are talking about physical products, we will focus on the number of purchases or service subscriptions. At this point, we must keep in mind a very important aspect: before measuring, it is necessary to establish what metric threshold we consider a success and which indicators will signal that we need to improve aspects of our product or service.

Learning

Obviously, this process has a single goal: learning. Once the acceptance of the idea and the metrics indicating what works and what doesn’t have been reviewed, it’s time to implement changes to keep improving the product. And if everything suggests that our idea is not viable or useful… don’t despair: you can always use what you’ve learned to launch new projects or apply it to your work. You’ll hear many times that what matters is the journey and that failure is part of success. Of course, failure does not always lead to success, but you will always gain learning, skills that will be useful in your professional life, and the pride of having tried.

Photo by Trust Katsande on Unsplash.