3 Reasons Why You Should Experiment in Business
Experimentation is a crucial aspect of any successful business. It involves testing out new ideas, products, and services to see what works and what doesn’t. Experimentation provides a way to learn from mistakes, adapt to changing market conditions, and stay ahead of the competition.
In my latest podcast episode, when I was in a conversation with Rajesh Dembla, this was one of the topics we discussed in detail. He said experimentation leads to innovation, which helps companies stay relevant to the times. Let’s look at the reasons why you should experiment in your business.
1. Innovation and experiment
Experimentation allows businesses to innovate and create new products or services that meet the needs of their customers. Trying out new ideas and technologies can lead to breakthroughs that set a business apart from its competitors. It can also help enterprises identify and capitalize on untapped markets, expand their customer base, and improve their brand image.
Global mobile phone companies like Samsung, Oppo, and Xiaomi launch six–seven products every year. Each comes with a new feature. If it’s a hit, they upgrade the product and add it to their next model; otherwise, they are dropped.
By testing out new ideas on a small scale, businesses can identify potential problems before launching a product for all. This can help companies to avoid costly mistakes and reduce the likelihood of failure.
2. Learn from mistakes
When you experiment in business, it provides valuable insights that can be used to improve operations. Through experimentation, businesses will identify their strong points and adapt their strategies accordingly. This can help businesses reduce costs, increase efficiency, and improve customer satisfaction. As a result, you can stay ahead of your competitors because your methods are tried and tested, which makes them foolproof.
For example, Airbnb started as a platform for renting air mattresses at homes. Over time, the company experimented with different features and services to improve the customer experience. They added professional photography, instant booking, and an enhanced review system. As a result, Airbnb has become a leading platform for short-term rentals and a top travel booking site.
3. Less work, more results
Experimentation helps you work efficiently. If you design the experiments properly, you can implement them quickly. Most of the time, the experimenting process requires you to follow the same set of activities you implement every time. Only the planning and evaluation will differ from one experiment to another.
It is like solving mathematical equations. You start by taking one approach, fail; you shift to the next method. You keep a note of the results and eventually mark the successful approaches. It is precisely the same for businesses. All entrepreneurs have a few unique tricks up their sleeves, and only experimentation can decide whether the tricks are useful.
Experimenting in business is vital for growth. When starting a business, the stakes are already high, and you have to take risks and experiment to find the best course of action for your business.
For more such insights, follow my podcast here.
Instagram | LinkedIn | Twitter | YouTube | Facebook | Buzzsprout | Spotify | Apple | Google
