{"id":49,"date":"2017-04-21T12:12:00","date_gmt":"2017-04-21T12:12:00","guid":{"rendered":"https:\/\/www.biznessvirgins.com\/index.php\/2017\/04\/21\/proof-of-business-concept\/"},"modified":"2020-02-20T09:55:16","modified_gmt":"2020-02-20T09:55:16","slug":"proof-of-business-concept","status":"publish","type":"post","link":"https:\/\/www.biznessvirgins.com\/?p=49","title":{"rendered":"Proof of (business) concept"},"content":{"rendered":"

Proof of concept is a form a validation in business ; it can be easily used to prove that a business idea works and is commercially viable.<\/p>\n

Its one of the essentials venture capitalists\/investors look out for before putting in money in a business venture.This is because it quantifies how much a business has (and is able) to accomplish in a way thats measurable.<\/div>\n
<\/div>\n
When you create a product\/service and are able to achieve a certain level of traction with it ,it is easy to relate with whatever  huge projections you have set especially when seeking investment.<\/div>\n
<\/div>\n
Showing proof of concept can help zero in on a definite path when scaling up a business. In the bootstrap model<\/a>, a business shows proof of concept somewhere along the “sell” stage, just before the “growth” stage; <\/div>\n
<\/p>\n\n\n\n\n
\"proof<\/a><\/td>\n<\/tr>\n
photo credit :www.bizpenguin.com<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/div>\n

When a business idea shows proof of concept,it means one or all of the following<\/div>\n
1) The business has been able to capture its own sizeable audience.<\/div>\n
2) The business has been able to successfully sell a product\/service and make money (profit) from its audience .<\/div>\n
3) Systems and processes within the business are reproduceable on a commercial scale.<\/div>\n
<\/div>\n
A business that has not attained a proof of concept is not necessarily failing, however, such business has most likely not been able to clearly identify how to make money from an audience on a commercial scale. To increase a business’ potential of success,it is important to look out for proof of concept before scaling up commercially,it verifies important assumptions about the business and reduces the risk involved in taking a small business\/startup into the mainstream market.<\/div>\n
<\/div>\n\n\n\n\n
\"how<\/a><\/td>\n<\/tr>\n
photo credit: www.showme.co.za<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
<\/div>\n
<\/div>\n
\n

Here are some parameters considered when checking for proof of concept in business.<\/h3>\n<\/div>\n
<\/div>\n
– Net profit<\/div>\n
– Gross profit<\/div>\n
– Revenue\/ revenue growth rate<\/div>\n
– Number of customers\/clients\/users<\/div>\n
– Customer\/clients\/users growth rate<\/div>\n
– Systems and processes<\/div>\n
– Total amount of money that has been invested in the business<\/div>\n
<\/div>\n
<\/div>\n
These are parameters to consider when testing an idea for proof of concept. These are also some of the parameters used to see how well a small business\/startup is doing.<\/div>\n
If you are a bootstrapper<\/a>, i recommend checking these parameters as you use the bootstrap model<\/a> to develop your business.<\/p>\n

learn more about how venture capitalists make investment choices<\/a><\/div>\n\n

<\/div>","protected":false},"excerpt":{"rendered":"

Proof of concept is a form a validation in business ; it can be easily used to prove that a business idea works and is commercially viable. Its one of the essentials venture capitalists\/investors look out for before putting in money in a business venture.This is because it quantifies how much a business has (and […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[51],"tags":[],"class_list":["post-49","post","type-post","status-publish","format-standard","hentry","category-business-management"],"_links":{"self":[{"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/posts\/49","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49"}],"version-history":[{"count":1,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/posts\/49\/revisions"}],"predecessor-version":[{"id":607,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=\/wp\/v2\/posts\/49\/revisions\/607"}],"wp:attachment":[{"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biznessvirgins.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}