Table of Contents
- Why Small Experiments Matter in Innovation
- The Power of Targeted Experiments
- Sequence Your Experiments for Maximum Impact
- Learn from Their Mistakes: Google Glass
- Why You Should Start Small to Scale Big
- Final Thoughts
One of the biggest challenges that innovation leaders and startups face is figuring out how to validate ideas without blowing through their budget. The answer lies in running small, targeted experiments that help you test crucial assumptions before committing to full product development.
This approach not only minimizes financial risk but also ensures you’re building something your customers truly want. In this blog post, we’ll explore how to execute this strategy effectively.
Why Small Experiments Matter in Innovation
Uncertainty is the only constant in the fast-paced world of startups and innovation. You may have a groundbreaking idea, but assumptions about your customers’ needs, willingness to pay, or even the product’s functionality can make or break your venture. This is where small, low-cost experiments come into play.
By starting with smaller tests, you can quickly validate—or invalidate—your core hypotheses without draining your resources. This lean approach allows you to pivot swiftly, adapt to new insights, and reduce the risk of costly failures. In essence, you’re buying valuable knowledge at a fraction of the cost.
“Before you assume, try this crazy method called ‘asking’.” – Unknown
The Power of Targeted Experiments
Not all experiments are created equal. To maximize your ROI, focus on targeted experiments designed to test the most critical assumptions about your product or service. These assumptions could be related to:
- Customer Need – Does your target audience actually need this solution?
- Willingness to Pay – Will customers pay for it, and if so, how much?
- Usability and Functionality – Does the product solve the problem effectively?
By zeroing in on these core areas, you can gather actionable data that informs your next steps, whether it’s refining the product, adjusting pricing strategies, or even reconsidering the entire business model.
Sequence Your Experiments for Maximum Impact
One of the most effective ways to implement small experiments is by sequencing them strategically. Start with the most fundamental assumptions and gradually build on the insights gained. Here’s how:
1. Test the Problem First
Before you even think about developing a solution, confirm that the problem you’re solving is significant enough. Use surveys, interviews, or landing page tests to gauge customer interest. Tools like Typeform, Google Forms, or even simple social media polls can provide quick feedback.
2. Validate Willingness to Pay
Once you’ve confirmed the problem, the next step is to see if customers are willing to pay for a solution. This is critical, as many startups fail because they misjudge the market’s willingness to pay. You can use a pre-order landing page, crowdfunding platforms, or even direct customer conversations to validate this assumption.
3. Test the Solution with a Low-Cost Prototype
Instead of investing in costly product development upfront, start with a simple, low-cost prototype. This could be a basic model made from cardboard or even a hand-drawn wireframe to visualize the solution. The goal is to quickly test whether the product concept is viable before committing significant resources. By using a basic prototype, you can gather initial feedback, refine your design, and invest in further development only if users show genuine interest.
A great example of this approach is Dyson, the vacuum cleaner company. James Dyson built 5,127 prototypes before launching the Dyson DC01, the world’s first bagless vacuum, in 1993. His first prototype was made from cardboard and attached to a vacuum cleaner. It wasn’t perfect, but it gave him valuable insight into how his invention might work. This iterative prototyping process allowed Dyson to refine the design before investing in full-scale production.
Learn from Their Mistakes: Google Glass
Google Glass was a smart, wearable device powered by Android and controlled by voice and motion. It resembled a pair of eyeglasses and displayed information right in front of your eyes, creating an augmented reality (AR) experience using visual, audio, and location-based features.
Google launched the product in 2014 with high expectations, believing that consumers would embrace wearable augmented reality technology. However, they failed to properly test whether the average consumer actually needed or wanted this product in their daily lives.
“In a survey of consumers, Forrester found that 43 percent of consumers had an interest in Glass – but 50 percent also had privacy concerns.” (Dougherty, NY Times, 2015)
Google Glass was pulled from the market by 2015 and was perceived as invasive and unnecessary by many, which led to public backlash and poor adoption rates.
In 2017, Google gave Glass a new purpose with the launch of Glass Enterprise Edition, shifting its focus to help workplaces like factories and warehouses. This version was designed to boost productivity and efficiency on the job. Two years later, in 2019, the Glass Enterprise Edition 2 hit the market with improved features. However, in March 2023, Google decided to stop selling Google Glass, and by September 2023, they officially ended support for the device.
This example illustrates the importance of validating the most critical assumptions first before investing heavily in product development. By validating the problem, confirming willingness to pay, and testing the solution with a low-cost prototype, you can avoid costly missteps and build a product that truly resonates with your customers.
Why You Should Start Small to Scale Big
Starting with small, targeted experiments gives you the agility to learn and adapt quickly. It minimizes financial risk, accelerates learning, and increases your chances of product-market fit. By validating critical assumptions early on, you’re not just building a product—you’re building the right product.
This lean approach is the key to smart, sustainable growth. So before you dive headfirst into full product development, ask yourself: Have I tested my most critical assumptions yet? If the answer is no, it’s time to get experimenting—strategically, and cost-effectively.
Final Thoughts
Small, targeted experiments are not just for tech startups—they’re a powerful tool for any entrepreneur looking to innovate wisely. Begin by focusing on high-impact assumptions, sequencing your experiments strategically, and keeping costs under $10,000. This approach allows you to gather the insights needed to scale confidently. It doesn’t just save you money—it helps you build a product that truly resonates with your audience.
Are you ready to validate your ideas?
Don’t leave it to chance—take the first step towards making smarter, evidence-based decisions. Book a discovery call with Accolade Coaching today and learn how the Innovation Creator Program can guide you through the process of strategic experimentation.
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