It’s not just Clove Research surveys; many other studies reveal that Gen Z is highly interested in becoming entrepreneurs rather than employees. One of the main reasons is the aspiration to achieve work-life balance, which is perceived to be more attainable through entrepreneurship.

Then comes the next question: “What business should I start? Will it sell?”

In the business world, product development carries significant risks, and even the most brilliant ideas can fail without proper validation. So, do these new business owners already have a product or business concept? Ideally, before starting a business, you should assess whether the product or business concept you have truly meets consumer needs.

CONCEPT TEST

A concept test is a powerful tool to help new business owners or brands bridge the gap between imagination and market reality. It is a critical checkpoint where innovative ideas face their toughest judge: the consumer. By gauging consumer reactions and wisely investing resources, new business owners or brands can refine product features, tailor messaging, and ensure their vision aligns with market demands.

Why is this process so important?

A survey by Clove Research shows that 95% of new products fail to meet the expectations of their creators, and concept testing offers a solution.

Functions of Concept Testing Before Starting a Business:

1. Ensure your product or business concept genuinely addresses consumer needs.

2. Avoid ventures that fail in the long term due to poor reception by consumers.

3. Identify the most suitable target consumer segment for your business.

4. Gather feedback and suggestions from potential consumers to refine your product or business concept before launch.

How to Evaluate a Product Concept?

1. Prepare a Concept: Create a description of the product, including its type/category, product description (variants, flavors, scents, and other attributes), ingredients/components, and the benefits it offers to potential consumers.

2. Focus on Uniqueness: Highlight the differentiators that set your product apart from similar offerings in the market.

3. Leverage Functional and Emotional Statements: Emphasize both the functional and emotional value your product delivers.

4. Conduct Focus Group Discussions (FGD): Test the product concept with FGDs involving diverse consumer segments.

5. Explore Consumer Feedback: Encourage consumers to provide positive and negative evaluations of the product concept, as well as their suggestions or expectations. This will help gauge their interest in future purchases.

As concept testing evolves, new business owners and brands will be better equipped to navigate the complexities of product development.