Smoke Test is used to validate a business idea quickly and inexpensively, but not only that
In this guide you will find a more detailed explanation of what the Smoke Test is and how it works (with some practical examples), the list of reasons why you should perform it and the list of benefits it offers, but also the mistakes you should definitely avoid while performing it.
What is the Smoke Test?
Smoke Test is a methodology used to validate a business idea and, in particular, to ascertain, even before it is implemented, that the product or service thought of is just what consumers need. This, at least, is its main purpose, as described by Eric Ries, that is, the one who introduced the concept of Smoke Test in his famous book “The Lean Startup“.
In practical terms, this is a particular test that, in the IT field, is used to evaluate the proper functioning and effectiveness of the basic features of a software program. In a completely similar way, in the entrepreneurial field the Smoke Test is intended to test an idea that you think is interesting, analyzing market behavior so that you can decide, then, whether to go ahead with the project (and in what way) or abandon it.
When and why to do a Smoke Test for your Startup
Smoke Test, therefore, allows you to validate the idea and assumptions of the business model even before you make a product/service and attack the market. You should know, however, that startups can also use this test at other stages of life, with different objectives.
In the next few lines we will delve into this very aspect and, that is, when to do the Smoke Test for your Startup and why.
Reduce the risk of failure
In the aforementioned book “The Lean Startup,” Eric Ries states:
“The problem with so many entrepreneurs is that they too often work on creating great products that no one wants.”
In the validation phase of a business idea, Smoke Test prevents precisely this error and thus reduces the risk of failure by giving the opportunity to concretely assess the existence of a concrete need before developing the product/service (which is proposed to satisfy that very need).
To optimize the validation process, it is possible to launch multiple Smoke Tests at the same time and test different versions, so you can get a more complete idea, more quickly, of the chances of success.
Test new features of a product/service
Smoke Test is important for a startup not only in the validation phase of the business idea. It can (or, rather, should) be used, in fact, at other stages of the company’s life as well, with different purposes and results. For example, in the startup acceleration phase, Smoke Test can be very useful for testing new features of an existing product or service.
How a Smoke Test works: practical examples
To better understand how a Smoke Test works we will use some practical examples. First, however, you should know that there are preparatory activities you should take into account before creating a Smoke Test: we refer to the creation of the Lean Model Canvas and the definition of the Value Proposition Canvas.
The former allows you to clearly identify the problem to be solved and the audience segments to be targeted, as well as the Value Proposition, while the latter gives you the opportunity to learn about the habits and needs of your potential customers.
With these two preliminary steps, you will be able to more easily and effectively validate your business idea, even before you implement the Minimum Viable Product.
There is another valuable piece of information about how a Smoke Test works that you absolutely must know. Conducting such a test is done in three steps:
- Definition of objectives and target;
- Definition of the mode of testing;
- Analysis of the data and results obtained.
Regarding, in particular, how to conduct a Smoke Test, we will now look at two practical examples: the Smoke Test with Landing Pages and the Smoke Test with Advertising Campaigns.
Smoke Test with Landing Page
To validate a business idea, it is possible to perform a Smoke Test by creating a Landing Page with, inside it, screenshots of what the product/service (e.g., an app) would look like once it has been realized. As already pointed out, in this case defining the Value Proposition Canvas proves particularly useful, because it allows you to test precisely the features identified through it.
Smoke Test with Advertising Campaigns
Another way to validate a business idea through Smoke Test involves corporate advertising: an excellent solution in this regard is to create an advertising campaign with a video that can reproduce (in a “fictitious” way, since it has not yet been realized) the operation of the product/service, so as to draw attention to it.
The Benefits of Smoke Test for Startups
The time has come to address a crucial issue, namely, that concerning the benefits that a Smoke Test ensures for startups.
Resource saving
The main advantage of the Smoke Test, as you must have realized by now, is the saving of time and money: a test of this type, in fact, allows you to validate your business idea even with a limited budget because it is performed even before the product/service is realized. Not only that, Smoke Test also allows you to make your appearance in the market more quickly, making you known sooner and better by potential customers.
Flexibility and adaptability
If done correctly, Smoke Test also ensures your startup more flexibility and adaptability, since it provides you with valuable feedback from the market and highlights critical issues and problems to be solved, thus giving you the ability to intervene early with the most appropriate improvements and better preparing you to handle any future crises.
Remember, in this regard, this famous phrase by Eric Ries:
“The most important thing is not to be right the first time, but to learn as quickly as possible.”
Mistakes to avoid in the Smoke Test
Before concluding this guide devoted to the Smoke Test, it is also necessary to highlight its disadvantages and mistakes to avoid.
One of the main “cons” of the Smoke Test is the risk of creating false expectations of a product/service that is likely to be different from the one presented during validation. Another danger is, then, related to the possible negative repercussions on the company in case the Smoke Test does not get positive feedback.
As for mistakes to avoid, however, the main advice for you is to pay close attention to what was said earlier about how the Smoke Test works.
In fact, an absolute mistake not to make is, for example, not defining the goals you intend to achieve with the Smoke Test or not correctly identifying your target audience. Last but certainly not least: it is equally wrong to choose misleading metrics for analyzing the data obtained through Smoke Test.
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