Proof of Concept (PoC): Does your business idea work?

Are you asking yourself the question " What is a PoC"? Have you ever seen the abbreviation in the business or IT environment and didn't know exactly what it means? Among other things, PoC is the abbreviation for Proof of Concept, an important milestone in the creation of a product or concept.

Perhaps you know this? Do you have a great idea for an innovation in your company or even a business idea, but don't know whether the idea is feasible and profitable? Then a proof of concept is exactly what you need!

Definition of PoC

The term PoC stands for Proof of Concept, which can be translated as proof of concept . To be precise, the aim is to prove that the concept for an idea, product or innovation is valid and will produce a good result.

In most cases, a PoC, also sometimes called a proof of principle, is carried out after the concept has been created and before the pilot phase. It is implemented in a small and preferably protected environment in order to be able to assess whether break-even is possible within a planned timeframe.

Reason for PoC

The reason for carrying out PoCs is of an economic and practical nature. It is a test to check the feasibility and cost-benefit ratio of a project.

From an economic point of view, the market and the target group are examined and it is determined whether the product would have enough customers. A feasibility study is usually carried out in advance and the product is then tested in small, low-risk markets. The sooner customers are involved in the process, the better. Trade fairs are often used to observe the needs of the core target group.

For projects within the company , the PoC is usually carried out by first testing an innovation that is to be introduced company-wide in a few departments. Based on the resulting findings, the pilot is either started or not.

How is a PoC carried out?

Depending on the type of project, the PoC process also looks slightly different. Normally, however, the aim is to carry out tests with a prototype or minimum viable product (MVP) and evaluate the result. You should therefore prepare the following:

• Kick-off event of the PoC to brief the participants,
• Fixed time period for the test,
• Evaluation forms for the PoC participants (the evaluation criteria should be meaningful and target-oriented and understood by the participants),
• Detailed documentation of the PoC process,
• Regularly obtain suggestions for improvement.

Finally, this should result in a plan for how the product, strategy, etc. should be adapted to better meet all needs. If the product is already perfect, a plan for the next steps must be drawn up.

Make sure that each participant is a person with personal preferences. It is quite possible that you will receive both very positive and very negative feedback. It is important not to be unsettled by the negative voices, but to translate them into constructive suggestions .

Conclusion

The assumption that your idea is perfect is a widespread and dangerous phenomenon among entrepreneurs. So don't fall into this trap! You now know how to carry out a PoC and can use this for the success of your company.
So don't waste any time, but test your business idea with a proof of concept and wave goodbye to success.

Have you ever carried out a PoC yourself? Then share your experiences in the comments!