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What Is Proof of Concept (POC)? Examples for Business, Software & More

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Product development projects can’t move forward without evidence to support that a viable product can be produced. That’s why you need proof of concept (POC) to prove a business idea or project has legs to stand on.

So, what is a proof of concept? It sounds a bit like a prototype or a minimum-viable product, but that’s not what it is. We’ll compare those product development methods later, but first things first, let’s start with a proof of concept definition.

What Is Proof of Concept (POC)?

Proof of concept is evidence obtained from a pilot project, which is executed to demonstrate that a product idea, business plan, or project plan is feasible. For example, in drug development, clinical trials are used to determine whether a new drug will be safe and effective, thus gathering proof of concept for a final product. The results of a proof of concept are gathered in a proof of concept document that helps stakeholders better understand what the proof of concept success criteria are.

business plan proof of concept

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But that definition doesn’t cover everything a proof of concept does. A proof of concept collects user feedback and insights from your team members, including those who might not have otherwise contributed, thereby mitigating unforeseen risks.

POC is an important part of the product development process in many industries and fields such as:

  • Software development
  • Business development
  • Project management
  • Manufacturing, IT, healthcare and cybersecurity, among other industries.

A proof of concept is a critical project that can determine the viability of your actual project later on. To ensure you do everything you can to deliver results, give yourself and your team the right tools.

What Is the Purpose of a Proof of Concept?

The main purpose of a proof of concept is to determine whether a new product or business idea is feasible and likely to be successful in the market before a company continues further with its development. To achieve this, a POC requires thorough research and testing. A proof of concept may also collect feedback from potential customers, investors and the product development team.

Benefits of Using Proof of Concept

The proof of concept is so valuable because it’s a pilot project to evaluate the feasibility of your plan before work begins, similar to a prototype or lean manufacturing “minimum viable product.”

A proof of concept verifies that concepts and theories applied to a project will result in a successful final product. POCs do not produce deliverables, as the core issue being considered is the feasibility of the project.

Here are some of the main obenefits of using proof of concept during the early development stages of your projects:

  • Gives potential investors and decision-makers valuable data to determine if the project or product idea will be feasible and how valuable it’ll be for the target audience.
  • Provides development teams important user feedback and information about market demand, target audience and critical pain points.
  • Serves as an important step of the product development process because it’s the base for your product prototype and minimum viable product.

Steps to Write a Proof of Concept

As noted, a proof of concept is a project, and like any project , it must be clearly defined. Even though there’s no standardized method to write a proof of concept, you’ll need to break down the proof of concept process into actionable steps.

To help, we’ve outlined these general steps to write a proof of concept document.

1. Define Your Success Criteria

To have accurate proof of concept feasibility measurements, you must have a set of metrics or success criteria . To define the success criteria for your POC process, you can start by interviewing the client, as it’s their satisfaction that’ll determine if the proof of concept is a success.

requirements gathering template

2. Estimate Duration & Effort

When you’re working on a POC, it’s a project, but it’s not the final project. You’ll need to estimate the duration and effort that’ll be put into the proof of concept pilot project.

3. Define the Scope of your POC

The scope of your proof of concept determines what’ll be done and measured in the pilot project. Defining the scope for your proof of concept is key to getting accurate results. Even if the POC is proved viable, that proof of concept is worthless if the scope isn’t correct because you failed to evaluate the project thoroughly.

project scope template

4. Pick Your Resources

Who you choose to execute the proof of concept pilot project is as important as the planning process. You want to ensure they have the right skills to do a thorough job.

Proof of Concept Examples

Here are some examples to better understand how a proof of concept document might be used in different scenarios.

Proof of Concept in Software Development

In software development , a proof of concept is used to establish if it’s viable to create a piece of software. To do so, development teams must establish who needs this software, what problems would it solve, what’s needed to develop it from a resource standpoint and whether it’s technically feasible to create it.

The software development team will brainstorm and interview potential users to better understand what the software should be like. In addition, just as when creating any product, the team should look into the existing solutions that competitors offer. These findings will then be put into a proof of concept document that’ll explain whether the software should be created by explaining its technical feasibility, business impact and potential to succeed in the market.

Proof of Concept In Product Development

When companies are developing a product, there are some attributes and requirements that are expected from it, such as its cost, functionality, quality and durability. Before creating a prototype, product development teams will conduct research and testing to establish whether it’s feasible to develop such a product.

Then, they’ll compile their findings in a proof of concept document that’ll be used to show internal and external stakeholders that the product can be developed. Finally, they’ll get approval for building a prototype and moving on with the product development process.

Proof of Concept In Business Development

Similarly, in business development, a proof of concept refers to the testing and research that’s conducted to determine whether a business plan is feasible to convince potential investors of funding it.

For example, some new businesses develop breakthrough production processes or technologies that have the potential of being efficient and profitable. In many cases, these new businesses need funding to achieve the ambitious goals they’ve set. However, they must first conduct trials and gather proof of concept to show that the process actually works to ask for financing from the government or private investors.

Proof of Concept In Marketing and Sales

In marketing and sales, a proof of concept is a product demonstration that’s done to validate initial assumptions from market research . Once you’ve determined who’s the target market for your new product and what are the pain points your product will solve, you might conduct focus groups, surveys or presentations as a proof of concept exercise. These can help determine whether your assumptions about your target market and the potential success of your product were correct, or if in the opposite case, your marketing planning needs more work.

Proof of Concept In Project Management

Projects take many different forms, so the proof of concept process might slightly vary from one project to another. However, in general terms, a proof of concept in project management is used to demonstrate that a project idea can be implemented in the real world and whether its final deliverable is attainable. The main goal of a project POC is to use research and testing to verify whether the methods and technology to be used in the project are likely to work before investing financial resources into it.

Proof of Concept vs. Prototype

Proof of concept might sound like building a prototype , but there are differences and each has its own function. The POC is a sort of small project to test the idea: it exists solely to show that a product concept is both functional and can be developed.

Creating prototypes is another important exercise. The creation of prototypes is done to help visualize how a product will function in the real world. It shows the design, navigation, layout, etc. Therefore, a proof of concept shows that a product idea can be made, and the prototype shows how it’s made.

That doesn’t mean these two concepts are mutually exclusive. They share some common ground. That’s because proof of concept shares user feedback with the team, allows them to investigate emerging technologies and, of course, shows investors and decision-makers that the concept works. Once the POC has proven the project is viable, often a prototype is created.

Proof of Concept vs. Minimum Viable Product (MVP)

A minimum viable product (MVP) is an improved version of your product prototype. Simply put, a minimum viable product has only the basic features that your users would need to have an idea of what your product is like and what it does.

To summarize, the main difference between proof of concept and minimum viable product is that they come at different stages of the product development process, and serve totally different purposes.

Reporting on a Proof of Concept With ProjectManager

These are the basic parameters that make up a successful proof of concept. The results of your pilot project must be disseminated. If the communication is muddled, no one in the project team will know about the proof of concept.

There’s a lot of POC data to be collected and that means many numbers to crunch. ProjectManager can help. All three of our project management views instantly reflect these status updates. These status updates turn into colorful charts and graphs on our real-time dashboards that note progress, task status, workload and more.

ProjectManager’s dashboard view

Project managers can keep the proof of concept process on track, and when it’s time to present their POC results, filter the graphs and charts to show just the data the client needs. Proof of concept is critical for the product development process. POC is the project before the prototype, minimum viable product and final product. Having access to the right project management tools can help get the job done right, regardless of scale.

ProjectManager is online project management software that has the most accurate data to keep your POC on track and then the full-fledged project progressing as planned, too. Scheduling with online Gantt charts, visualizing workflow on kanban boards and a real-time project management dashboard are just a few of our features. See them all and how they can help you lead your project to a successful end by taking this free 30-day trial today .

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How to write a proof of concept (with template)

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I have a friend who describes himself as an "ideas guy." He regularly proposes grandiose business initiatives, solutions to global issues, and creative ideas for novels. And I can't lie—I often find myself leaning forward with wide eyes, like a kid listening to a ghost story at camp.

The catch? There's rarely a plan.

Table of contents:

What is a proof of concept (POC)?

Why a proof of concept is valuable.

How it differs from a prototype and a minimum viable product (MVP)

How to write a proof of concept

3 proof of concept examples.

A proof of concept (POC) is the process of proving that an idea is feasible. It's a screening phase to decide whether the idea can and should be brought to life. A POC may very well reveal that a great-on-paper proposal doesn't have legs to stand on, in which case it should be revised or trashed. It's similar to a painted door test , which can shed light on the popularity of an idea.

business plan proof of concept

There's no worse feeling than looking back on hours of work to realize that they've been for nothing. Proofs of concept aim to prevent this from happening. Here's why you shouldn't skip this step when building out an idea:

Prevents resource waste: Most projects demand a lot of resources—both tangible, like money and materials, and intangible, like time and energy. If you dive into a project—such as a new product launch —before proving it can be done, there's a decent chance it'll end up flopping and costing you big-time.

Informs investors: Investors are excellent judges of risk and reward. If your POC proves that your idea is likely to succeed, it's much more likely to attract support from investors than if it were left untested.

Helps you get ahead: A POC is about being proactive and forward-thinking. It forces you to consider logistics in advance, making your job easier when you move onto later stages of development .

Identifies roadblocks: Even if an idea proves viable, it may be difficult to execute. For example, a POC for a new device might uncover logistical barriers to manufacturing it at scale, which could impact the organization's decision to go through with it.

Proof of concept vs. prototype vs. minimum viable product (MVP)

business plan proof of concept

Chances are, you've heard the term "prototype" used more colloquially than "proof of concept." They're often used interchangeably, though they're completely different stages of an idea's evolution.

A proof of concept 's only purpose is to show whether you can reasonably create a product. 

A prototype is a model of the product that follows POC approval. It's usually staged in the real world as opposed to a controlled setting to determine how the product would actually perform.

A minimum viable product (MVP) goes a step further—it's an advanced prototype that contains all of the basic features a user would need to use a product. It likely has some issues that need to be worked out, but it provides a solid idea of what it would be like to use the end product.

As with any business proposal you'd show to executives and investors, there's a method to developing a proof of concept. Check all of the following boxes as you write yours.

Step 1: Describe what problem you're trying to solve (and for who)

Investors aren't going to funnel money into a project that doesn't solve a specific problem for a specific market . To determine your market's pain points , don't just trust your gut— collect data directly from the people you aim to serve. For example, you could conduct a focus group or set of interviews with people in your market to confirm that your idea would serve them well.

Step 2: Provide a list of the resources you'll need to complete it

It takes a lot of tangible and intangible resources to create a new product (especially at scale). Create a comprehensive list of everything you need to roll it out. Apart from obvious resources like materials and machines, be mindful of commonly overlooked items like time spent on research and sourcing external expertise.

Step 3: Specify success criteria/metrics

Before you draw any conclusions about your POC, you have to set specific criteria for success and/or failure . If you're designing a product for a client, you'll want to ask them what their criteria are. If not, conduct your own research and determine them yourself. For example, if you have an idea for a new hair product, you may set specific thresholds for material sourcing cost, manufacturing time, and time you would need to devote to marketing.

You may be tempted to set generous standards to help your idea look good, but doing so can easily backfire. The last thing you want is to move forward with an idea that eats up company time and resources without the payoff.

Step 4: Set a scope and timeline

To what extent do you expect to scale your project, and how quickly do you plan to do so? Maybe you'll initially release the new product in one locale or country, measure its success, then scale it further over time. Or maybe you'll lose no time and execute a full launch all at once. Include these details in your POC to inform investors and executives of your pacing.

Once you've finished your POC, you can move forward with building a prototype, testing it on members of your target audience, and collecting and implementing their feedback as you develop your MVP .

Proof of concept template

Download Zapier's POC template below to expedite the process of validating your own project.

business plan proof of concept

Looking for a little more guidance on approaching POCs? No problem—here are some examples of what a POC might look like in a few different industries.

Clothing retail

A clothing company might have an idea for a new line of breathable sweatpants. Its POC may identify 40-to-60-year-old athletes as its target market after fielding a survey revealing that this cohort gets uncomfortable exercising in traditional sweatpants during winter months.

It might also list the resources needed to manufacture these sweatpants, the logistics for securing those materials and producing the sweatpants, and a plan for releasing them to the public. It should ultimately show whether the product is on track to meet KPIs, such as a predetermined profit margin.

A software company might have an idea for a new project management app and identify startups and small businesses as its target market. It should also describe why there's an unmet need for project management tools among small businesses.

The POC would need to describe a timeline for developing the software, whether new tools are needed to create it, and whether the company has enough internal expertise to make it happen (among other considerations).

A parent company that owns several restaurant chains might have an idea to open a new seafood restaurant affordable to lower-middle-class families. The POC would have a lot of ground to cover, including logistics for location, permitting, construction, sourcing food and decor, and more.

It might include a plan to start small, with a food truck or stand at local fairs, before building the first restaurant in a coastal city. It should also address whether it could become profitable within a reasonable time frame.

Automate your way to launch

Now that you have everything you need to write a POC, it's time to verify your creative ideas. As you move toward prototyping, use no-code tools like Zapier to build out your ideas and automate the critical workflows.

Related reading:

Project initiation 101

Find and validate business ideas on Reddit

How I launched an app using no-code tools

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Luke Strauss

Luke is a writer and content marketer from sunny San Diego. Since receiving his degree in International Management from Pepperdine University, he's channeled his passion for digital marketing and creative writing to create engaging content for organizations across a wide variety of verticals. When he's not at his desk, you'll find him at a music festival, thrifting, or spending time with his friends and family.

  • Small business
  • Sales & business development

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  • Proof of concept

What is proof of concept? Your guide to POC in product development

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Project planning is critical in product development .  Without a plan, it is just an idea. Demonstrating feasibility (an assessment on the likelihood of success) and viability (the ability to sustain success) in the early stages can garner buy-in from stakeholders and approval for development. One way to illustrate that a project meets customer requirements and makes business sense is by creating a proof of concept. 

This article discusses proof of concept in product management , its value in project development, the steps to create a proof of concept, and more.

What is proof of concept?

A Proof of concept (POC) is the process of gathering evidence to support the feasibility of a project. Project managers perform a POC in the early stages of development before committing too much time and resources to a project.

The purpose of a proof of concept is to demonstrate project viability to product teams, clients, and other stakeholders. A POC may uncover flaws, leading the company to revise or abandon a project. In other cases, a POC can confirm the likelihood of project success, providing evidence of viability for development.

Why is proof of concept important?

A proof of concept is important for several reasons, including:

  • Finite resources : A POC tests project feasibility, ensuring companies pursue only viable projects to prevent wasting resources.
  • Enhanced trust : A POC provides evidence of project viability. It helps earn trust among stakeholders and investors by increasing the likelihood of a return on investment over an idea that lacks planning and testing.

Better planning : A POC identifies roadblocks and informs project direction. Thinking ahead can help teams solve logistical issues before they arise, making navigating the later stages of development easier.

Key components of a proof of concept

An effective proof of concept contains several components. While POCs vary by business type, they should include the following elements:

  • Problem statement : Describe what challenges the project will solve and what needs it will address.
  • Project definition : Define what the project intends to do.
  • Project goals : Outline the intended outcomes and how you will measure them.
  • Required resources : List what tools and resources you will need to produce the intended results.

How to create a proof of concept

Creating a document or presentation increases the likelihood of stakeholder and investor approval. Below are the steps to writing an effective proof of concept.

Step 1: Define your project idea

You should first identify the project to test. A brainstorming template can help generate ideas, while a product launch template can help define the need and the market. 

It’s important to ask the following questions: What problems will this project solve, and for whom? The product manager should have the required market knowledge to answer these questions.

Step 2: Set your success criteria

After defining the project, decide on the benchmarks to measure the success or failure of the project. If the project is for a client, consult them about how they define success. If not, conduct the necessary research to determine success criteria.

Step 3: List the resources you will need

Build an exhaustive list of tangible and intangible resources the team will need to execute the project. Resources include material goods, technology, tools, and human capital.

Step 4: Determine your timeline

Create a product roadmap that overviews the timeline for the proof of concept from ideation to development. For example, will there be a full launch from the beginning, or will it start small and then scale? If the latter, how quickly will it scale? These details provide an idea of the pace of the project.

Step 5: Develop and test your prototype

Once you have decided on the project scope , you can develop and test your prototype with the target audience. Pay attention to how it addresses their pain points. It may help to bring in other teams and stakeholders to get a fresh perspective. Gather all feedback, both positive and negative.

Step 6: Review and refine

After gathering feedback, evaluate how the prototype performed against the predefined success criteria. Conduct a competitive analysis to evaluate its performance against similar solutions. Use the information from this step to improve on areas that fall short of success.

Step 7: Present your POC

Present your idea to stakeholders for development approval. Provide a clear model of how the idea works—visuals and illustrations can be helpful. Emphasize how it addresses pain points and meets the audience's needs. If the proof of concept meets the success criteria, approval is likely.

Proof of concept examples

It can be helpful to see real-world examples to better understand a proof of concept. Here are some examples of how they are used in various industries.

POC in software development

The software development process can use many different frameworks and models, making it difficult to decide which suits your project best. A POC can help you identify which technology best supports your project in meeting its success criteria.

POC in pharmaceuticals

Pharmaceutical development is another example where proof of concepts can prove critical. A POC can assess efficacy requirements as well as include a cost-benefit analysis to ensure profit.

Pitch an effective proof of concept with Jira Software

Jira Software simplifies the challenging process of creating a proof of concept. With project management tools such as boards, timelines, and insights, Jira Software helps project managers keep track of all Agile software development projects from a single tool.

In addition, development teams can use Confluence as a single source of truth, facilitating collaboration from virtually anywhere. Confluence templates , particularly those for product development, provide structure and make it easy for your team to work quickly. Altogether, these tools enable teams to move fast, stay aligned, and build better together.

Proof of concept: Frequently asked questions

What comes after proof of concept.

After presenting a proof of concept, the team receives an approval or rejection. If approved, the project team develops a minimum viable product. If rejected, the team either refines the project and presents it again or scraps it.

What is the difference between a proof of concept and a prototype?

While sometimes used interchangeably, these processes have different purposes and generate different results. A proof of concept determines project feasibility, while a prototype is a draft version of the final product to test its design, usability, and functionality before moving into production.

How does proof of concept differ from a minimum viable product?

While a proof of concept helps measure feasibility, a minimum viable product provides a market-ready solution for users. Project managers create a minimum viable product as an improved version of the prototype, which the team tests further to create the final product.

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What is proof of concept (POC)? Writing guide with examples

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A proof of concept (POC) demonstrates the feasibility of a proposed product, method, or idea. You must prove why your idea will work in the real world, so stakeholders and investors feel comfortable moving forward with the project. In this piece, we’ll explain how to write a POC and why this presentation is a beneficial part of product development.

Before you spend time, money, and energy on a project, it makes sense to research whether your idea is worthwhile. When buying a car, you make sure the engine runs before handing over your money, right? If you take time to test ideas and decisions before committing to them, you’ll make better choices and have fewer regrets.

What is a proof of concept (POC)?

A proof of concept (POC) demonstrates the feasibility of a proposed product, method, or idea. This is a way for you to prove that your idea will work in the real world, so stakeholders and investors feel comfortable moving forward with the project. Proving viability at an early stage in the project life cycle can put everyone at ease during project execution.  

[inline illustration] what is proof of concept (POC)? (infographic)

Various industries use proofs of concept in their development process because they mitigate project risk and give decision-makers valuable insight into the benefits of a project. But you won’t need a proof of concept for every project you work on because not every project starts with a new idea.

When do you use a proof of concept?

A proof of concept is most valuable when you’re developing a new product, method, or theory that doesn’t have precedence in your industry. You may need a proof of concept when:

Creating a new project idea: If you’re developing a product or method that no one has done before, a proof of concept will serve as your pilot project. When you don’t have previous use cases for comparison, you’ll need to test your idea and ensure it makes sense in real life. 

Adding a new feature to a project: When you add a new feature to a project, the existing project becomes something new. If you invented the new feature you’re adding to the project, use a proof of concept to ensure the feature won’t negatively affect the project’s functionality.

You may not need a proof of concept to demonstrate feasibility if you’re not adding a new idea or feature to your project. Use market research to determine whether there’s precedence for the project you’re working on, and if there is, use data in place of a POC.

How to write a proof of concept

A proof of concept is a pilot project. As you perform this project, you’ll outline the steps you take and your findings along the way. When you consolidate your research into one consumable document, you’ll increase your chances of securing funding or approval from your key stakeholders.  

[inline illustration] how to write a proof of concept (infographic)

Follow these five steps to perform and write a proof of concept. 

1. Define your business idea

Defining your business idea may seem like an obvious part of the development process, but you must do more than just speak your idea into existence. In this initial step, you should:

Use research to identify your target audience’s pain points and show how your idea will address those points.

Explain how you’ll execute your idea.

Express what your idea will accomplish in the long term.

When you begin your proof of concept with a clearly defined idea, your stakeholders or investors can move through the rest of your presentation with ease.

2. Set your performance goals

Once you’ve defined your idea and how you plan to execute it, pinpoint how to monitor and measure your success. Use relevant success metrics to prove feasibility in your target market. 

For example, some metrics you may use to test feasibility in software development include return on investment and probability of risk. Set benchmarks for the ROI or safety level you must meet to achieve feasibility.

3. Run your POC project

After you set your KPIs , it’s time to run your test project. This part of your proof of concept resembles a prototype because you’ll create a working model of your product or deliverable. 

Deliver this model to sample groups pulled from your target audience to determine whether the product meets their pain points. You won’t share this model with stakeholders or investors, so it doesn’t need to be polished like the final product. 

4. Track your metrics

As you test your working model, gather feedback from your sample group, including any reactions, comparisons, and detailed comments about pricing or other features. Record this information and track relevant data against your success metrics. 

Data will give you an idea of what your users think, but verbal and nonverbal communication can provide valuable insights that numbers alone can’t. Your sample group may openly discuss your project idea, and you can use their comments to address your project pain points. They may also express how they feel about your project idea through body language or tone of voice.

Record user feedback in your shared project management software so your team can refer to the feedback throughout the project life cycle. 

5. Present your results

You’ve now proven that your idea is feasible, but the final stage of your proof of concept involves convincing your stakeholders to buy into your idea. The best way to do that is to anchor your POC presentation on the pain points your project will solve and how this work will benefit your audience. When you present your proof of concept, emphasize how your idea will meet the needs of your audience instead of highlighting the features and deliverables you’ll be producing.

A proof of concept should explain the long-term value of your idea. When presenting your project, define the problem you plan to solve and outline specific pain points your idea addresses. The deliverables are how you’re going to solve those pain points, but think of them as tools to help you achieve your overall goals.

Proof of concept examples

Exploring proof-of-concept examples is an important part of the POC process, especially for project managers and teams undertaking complex projects. The purpose of a proof-of-concept is to validate the feasibility of a proposed product idea , project plan , or other business goals . 

These proof-of-concept examples serve as an in-depth guide that offers insights into the success criteria for various initiatives. They help in understanding how theories and concepts are applied in real situations, which helps teams refine their strategies for a successful proof of concept.

Proof of concept in business development

One important area that POC can have a big impact on is business development. A startup, for example, may execute a small-scale project to gauge market demand and usability before fully launching a new service or product. 

Feedback and data collection: A small-scale launch allows a startup to gather direct feedback and data from early users. This information is invaluable for understanding customer preferences, needs, and expectations, providing concrete insights into what aspects of the product or service resonate with the market.

Demand estimation: The initial response to the small-scale project is a key indicator of overall market demand. If the early reception is positive, it suggests a larger market potential. Conversely, a lukewarm response might indicate a need to reassess and adjust the product or marketing strategy.

Risk mitigation: Starting with a small-scale project significantly reduces the financial and operational risks. It prevents extensive investment in a product or service before confirming its viability in the market, ensuring that the startup doesn't commit substantial resources to an untested concept.

This phase is essential for improving the product development process and understanding the journey of potential consumers. It allows for necessary adjustments based on tangible customer feedback, setting the stage for greater success.

Proof of concept in project management

A proof of concept is often used to evaluate the effectiveness of project management tools and methodologies. For instance, an editorial team may apply a new software or brainstorming technique to a smaller-scale project. This approach allows them to evaluate how well these new methods align with their needs and the project's demands. 

Here are three key aspects of how a team would experiment with and learn from a POC:

Monitoring and data collection: The team implements the new tool or method and monitors its performance, focusing on efficiency, user-friendliness, and impact on project outcomes. This monitoring helps in understanding how the new approach affects workflow and project delivery.

Feedback gathering: Team members provide feedback based on their hands-on experience with the new tool or methodology. This feedback helps the team understand how useful the experience is for users, showing them what works and what doesn't.

Analysis and adjustment: The team analyzes the collected data and feedback to identify strengths, weaknesses, and opportunities for improvement. Based on this analysis, adjustments are made to fine-tune the approach so that it meets the project requirements and the team's expectations.

Through these steps, the team not only tests the new methodology but also gains valuable insights about their preparedness for larger and more complex projects.

Proof of concept in product development

For development teams, a POC is a fundamental part of the product development process . For instance, a team may develop a prototype of a software application to test key features and the user experience. This prototype stage is pivotal for several reasons:

Collect user feedback: Gathering user feedback on the prototype provides insights into how real users interact with the product, what features they find valuable, and where improvements are needed.

Identify functional issues: As users interact with the prototype, they may encounter functional issues or bugs. Identifying these issues early in the development process allows the team to address them before they become more significant problems.

Usability verification: Testing the prototype helps in verifying its usability. This validation is key to ensuring that the product is intuitive, user-friendly, and meets the intended user needs.

Proof of concept in marketing and sales

In marketing and sales, the proof-of-concept process is used to experiment with and refine new campaigns or strategies. This ideation process often involves implementing a new marketing strategy with a targeted audience segment . Key aspects of this approach include:

Execute trial campaign: Executing a trial campaign on a limited scale allows the marketing team to observe the strategy's impact in a controlled environment, reducing the risks associated with a full-scale rollout.

Analyze results: After the trial, the team analyzes the campaign's results to assess its effectiveness. This analysis includes metrics such as engagement rates, conversion rates, and overall audience response.

Refine strategies: Based on the analysis, the team can refine the marketing strategy. This refinement may involve tweaking the campaign's content, targeting methods, or overall approach to better resonate with the intended audience.

These steps enable marketing and sales teams to fine-tune their strategies, ensuring more effective marketing efforts and improved engagement with potential customers when the campaign is launched on a larger scale.

Proof of concept vs. prototype vs. MVP

You may see terms like proof of concept, prototype, and minimum viable product (MVP) used interchangeably. All these items are related to product creation, but they have key differences worth noting.

[inline illustration] differences between POC, prototype, and MVP (infographic)

A proof of concept, a prototype, and a minimum viable product differ in the following ways:

Proof of concept: A proof of concept is a presentation that demonstrates feasibility. The time to create a proof of concept can vary from days to weeks, depending on the complexity of your project idea. You’ll present your proof of concept to developers or researchers to convince them your idea is worthwhile. You should use a proof of concept when testing an idea you’ve never created before. 

Prototype: A prototype demonstrates how to build your product and what it may look like once it’s complete. Because the prototype is the first structured project build, it can take weeks to get right. You’ll present your finished prototype to developers, stakeholders, or a limited set of end users. You can use a prototype to secure funding for your project.

Minimum viable product: A minimum viable product is the most polished version of your project. After delivering your prototype or proof of concept to a limited group of people, you’ll create an MVP that uses feedback to make changes. You’ll create the MVP for your end users, and it can take months to create. The goal of the MVP is to gain a competitive edge in the market.

The proof of concept tests your product or idea at an elementary level, while the prototype brings your idea to life so you can share it with others. The MVP is your prototype in its final stage before you deliver your product or idea to the masses.

Benefits of proof of concept

When evaluating the feasibility of your idea prior to starting real work, the proof-of-concept process is extremely valuable because it serves as a kind of preliminary trial or pilot project. This POC process is akin to creating a prototype or a minimum viable product in lean manufacturing.

POC plays a key role in the validation of project concepts and theories. Unlike other ideation stages, proof-of-concepts typically don't yield finished products or deliverables, as their primary focus is on determining the project's feasibility.

Incorporating a proof of concept in the early stages of your project development roadmap brings several key benefits:

1. It offers essential data to potential customers, investors, and decision-makers, helping them evaluate whether the project or product idea is viable and assess its potential value to the target audience.

2. By providing user feedback, it gives development teams vital insights about market demand, the needs of the target audience, and important issues that must be resolved.

3. It serves as the cornerstone of the product development process, providing the framework for the development of your prototype and minimum viable product.

Put your project idea to the test with a proof of concept

It’s exciting to have an idea that you think can make a difference, but the only way to know whether your idea can move from your mind to the hands of your audience is to test its practicality. A proof of concept is the first step in bringing your idea to life, and it can give stakeholders or investors a glimpse of the polished project to come. 

To create a POC that clearly communicates your project idea and convinces others that your idea is worth exploring, you’ll need an airtight project management plan . Use project management software to establish a team workflow in this early stage of project development so you can prevent duplicate work and increase overall efficiency.

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The Ultimate Guide to Writing a Proof of Concept (POC) 

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A proof of concept (POC) is a demonstration of a product or project idea to determine its feasibility and viability. It is not focused on market demand or production methods, but rather on testing whether the idea can be turned into a reality. POCs are commonly used in the product development process and are created by employees or project team leaders. 

In this comprehensive guide, we’ll delve into the key components, strategies, and best practices to craft a successful proof of concept, paving the way for successful project implementation and ensuring your ideas are not only viable but poised for excellence. 

Key Takeaways

  • A proof of concept (POC) is a demonstration to test if a project or product idea is feasible and viable.
  • POCs are not focused on market demand or production methods, but rather on determining if the idea can be turned into a reality.
  • POCs are commonly used in industries such as hardware, drug discovery, manufacturing, and engineering.
  • They help minimize the risk of investing resources into untested hypotheses and provide valuable insights before full-scale production.
  • POCs are an important step in the project development process for validating business ideas and gathering essential feedback from stakeholders and potential users.

The Purpose of a Proof of Concept

The purpose of a Proof of Concept (POC) lies in its ability to validate the feasibility and viability of a proposed idea or concept before committing extensive resources to full-scale development. It serves as a preliminary exploration, allowing stakeholders to assess the technical, financial, and operational aspects of a project, identifying potential challenges and mitigating risks early in the development lifecycle. 

Additionally, a well-executed POC acts as a powerful communication tool, helping convey the vision and potential of a project to stakeholders, investors, and team members, thereby fostering consensus and support for the initiative.

By developing a proof of concept, development teams can test assumptions, experiment with technologies, and gather valuable insights that inform decision-making. This iterative and strategic approach not only enhances the chances of project success but also contributes to efficient resource allocation, ensuring that only the most promising and viable concepts progress to full development, ultimately saving time and resources in the long run.

Benefits of Using Proof of Concept

Using a proof of concept early in the development process provides several benefits for organizations. By validating ideas through a proof of concept, businesses can obtain concrete evidence of the feasibility of the project and assess their potential success in the target market. This validation process helps minimize the risk of investing resources into unproven concepts. After all, over 78% of IT executives surveyed said that less than half of the POCs they participate in result in production deployments , showcasing the importance of a failed POC rather than a failing business.

One of the key advantages of conducting a proof of concept is the opportunity to gather valuable user feedback and insights. By involving users in the testing process, you can gain a deeper understanding of their needs and preferences. This feedback enables businesses to refine their product or solutions to better meet market demand, ultimately reducing the risk of business failure .

A proof of concept also allows companies to identify critical pain points and potential challenges early on. By testing the idea in a controlled environment, the product development team can uncover any technical or logistical issues and address them before proceeding with full-scale production.

Furthermore, a proof of concept serves as a crucial step in the product development process. It provides a framework for prototyping and enables businesses and startup development services to create a minimum viable product (MVP) that can be further refined and tested.

How to Create an Effective Proof of Concept

Writing a proof of concept involves several steps to ensure its effectiveness. Follow these steps to guide you through the process:

1. Define the POC Idea

The first step in creating a proof of concept is to clearly define the idea. Identify the objectives and goals you want to achieve with the POC. Determine the resources needed, such as technology, equipment, and expertise.

2. Determine Scope

Evaluate the scope of the POC process. Define the specific features, functionalities, or aspects of the idea that will be tested. This helps establish clear boundaries and provides focus for the POC.

3. Establish Success Criteria

Set criteria for success that will be used to evaluate the POC. Determine the key metrics and indicators that will determine whether the proof of concept is successful or not. These criteria should align with the objectives and goals defined in Step 1.

4. Organize the Team

Identify the team members and stakeholders who will be involved in the POC. Assign responsibilities and allocate resources accordingly. Effective communication and coordination among team members are crucial for the success of the POC.

5. Estimate Time and Effort

Estimate the time duration and effort required to complete the POC. Consider factors such as research, development, testing, and iterations. It’s important to set realistic deadlines and allocate sufficient resources to ensure a thorough and comprehensive POC.

6. Evaluate the POC

Evaluate the POC by collecting user feedback and team insights. Gather data and analyze the results to determine if the proof of concept has achieved its objectives. Use this feedback to make any necessary adjustments or improvements before proceeding with further development or investment.

Summary of the proof of concept process:

Proof of concept vs. prototype.

While often used interchangeably, a proof of concept and a prototype serve different purposes in the product development process.

Differences between Proof of Concept and Prototype:

  • A proof of concept tests the feasibility and viability of a product or service idea, while a prototype tests the usability, functionality, and design of a working model.
  • A proof of concept determines if a product concept can be turned into a reality, while a prototype provides a draft of the final product for stakeholders to evaluate.
  • A proof of concept focuses on the potential of the idea, while a prototype focuses on the user experience and design .
  • A proof of concept is more abstract and exploratory, while a prototype is more concrete and tangible.

Additionally, a minimum viable product (MVP) is an improved version of a prototype that is more refined and ready for market testing. It is a functional product with a minimum set of features that can be released to collect user feedback and test market demand.

By understanding the differences between a proof of concept and a prototype, product developers can utilize each phase effectively in the product development process to create successful and marketable products.

Proof of Concept in Different Industries

Proof of concept (POC) is a valuable tool that finds application in various industries. Let’s explore how POC is utilized in software development, business development, project management, and product development.

Software Development

In the realm of software development, a proof of concept plays a crucial role in establishing the feasibility of creating new software development projects. It helps developers validate the technical aspects of their ideas and assess whether the proposed software can be successfully developed.

Business Development

When it comes to business development, a proof of concept is used to determine if a business plan or new technology is likely to work. It allows entrepreneurs and investors to assess the market potential and financial feasibility before committing significant resources.

Project Management

In project management, a proof of concept is employed to demonstrate that a project idea can be implemented and its deliverables are attainable. It helps project managers assess the feasibility of their ideas, identify potential risks, and make informed decisions about the path forward.

Product Development

Within the realm of product development, a proof of concept is employed to test the feasibility of creating a new product. It involves gathering insights from potential users, validating design choices, and assessing the viability of bringing the product to market.

Drug Development

In drug development, a successful POC signifies the validation of a novel therapeutic approach or drug candidate, demonstrating its potential efficacy and safety profile in a preclinical or early clinical setting, thereby justifying further investment and development efforts.

In conclusion, the proof of concept (POC) is a powerful tool that plays a significant role in testing the feasibility and viability of ideas across various industries. By conducting a POC, organizations can minimize risk and make informed decisions before investing resources into full-scale production. 

To write an effective proof of concept, it is crucial to follow a structured approach. Start by defining the idea and setting clear objectives. Determine the scope and success criteria to evaluate the project accurately. Organize a dedicated team with the necessary skills and expertise. Estimate the time and effort required for the POC, ensuring realistic expectations. Finally, evaluate the results by collecting user feedback and insights, and make any necessary adjustments before moving forward.

By taking these steps and leveraging the power of proof of concept, organizations can increase their chances of project success. A well-executed POC not only validates ideas but also empowers businesses to make informed decisions, leading to the development of innovative and successful products or projects. Harnessing the power of proof of concept is key to driving progress and achieving sustainable growth in today’s competitive landscape.

What is a proof of concept (POC)?

A proof of concept is the first step for businesses to bring their idea to life. It verifies that a certain concept or theory has the potential to be developed into a practical solution. It’s often the first step in creating a minimum viable product (MVP) or part of the product development process.

What is the purpose of a POC?

A proof of concept shows the potential of a project idea by demonstrating how it addresses a specific problem or opportunity, showcasing its practical viability, and providing evidence of its potential value to stakeholders. After presenting a proof of concept, the product development team receives approval or rejection. A successful POC should demonstrate that a proposed concept or business idea can be implemented effectively and meets specified requirements.

How does a proof of concept differ from a pilot project?

A proof of concept is focused on validating a specific idea or concept, while a pilot project is a small-scale implementation of a full project plan to test its feasibility in real-world conditions.

What are the steps to write a proof of concept?

To write a successful proof of concept, you need to clearly define the concept, use relevant project management tools, demonstrate the proof of value, and showcase how the concept can be developed into a practical solution.

What are the key elements of a proof of concept document?

The key elements of a proof of concept document include the concept definition, the goals and objectives of the proof of concept, the methodology used, the results and findings, and the recommendations for further development.

How is a proof of concept used in the software development process?

In the software development process, a proof of concept may be used to validate new technologies, demonstrate the feasibility of a software solution, or assess the potential of a new approach before investing in full development.

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What is a proof of concept: Definition, examples, and template

business plan proof of concept

Building a product is never easy — there are so many ways to do it that it may become overwhelming even to start outlining your idea. Should you start with a prototype, MVP, or a minimum lovable product? The answer is always in your goals, resources, and stage of maturity, of course.

What Is A Proof Of Concept Definition Examples Template

This article aims to guide you through the challenges of developing a product, and decluttering the path to a proof of concept (PoC) while considering limited resources, conflicting priorities, unclear goals, and unanticipated issues.

What does proof of concept (PoC) mean?

A PoC is literally the evidence that your idea is feasible and is based on an experiment or pilot to demonstrate that your idea works — it can be a report document or a literal piece of software. No matter if it’s a design or business proposal, a new stack for an existing product, a feature, or an innovative wearable to be built, the PoC can even be the smallest increment you can think of.

A PoC is meant for when you plan to build a solution and you are not sure of how feasible, expensive, or scalable it is. So, you just build a small component of it to help you understand what it takes to transform this idea into reality — before investing A LOT of money in the real solution.

Proof of concept vs. prototype vs. minimum viable product (MVP)

The PoC is a small part of your project that exists just to see if it works. Once you learn the conditions under which your idea can be implemented, the best next thing to do is to create a prototype.

A prototype is the first design of your actual product. It can be static, like a wireframe , to outline the layout of your entire product and all the flows. Or it can be dynamic, where you design every screen and add some clickable components.

The prototype will help you experience the solution so you can better see how it looks and feels from a visual and/or functional perspective.

The minimum viable product (MVP) is the first version of your product. It’s developed so you can get a first reaction from your users before going big.

In summary, a PoC may help you identify the right technology, the prototype gives you the direction, and the MVP gives you the market reaction before developing a more advanced version.

Ok, explain like I’m five!

Say you want to build a boat for four people stranded on an island. The PoC could be checking what type of boat material will float best near your island (considering the saltiness, currents, and all), the prototype can be an actual raft, and the MVP can be a small, one-person boat for someone to test around:

Boat Example For Proof Of Concept

The end product (the boat) will be a scaled version of the MVP — with some improvements from the person or people who tested the one-person boat, most likely.

Benefits of creating a PoC and best practices to keep in mind

Unsurprisingly, there are several reasons why creating a PoC is helpful.

business plan proof of concept

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Saves money and time

PoCs help you identify the right solution to move forward with. No matter if you build a functional, visual, or experimental PoC, the effort will be low. In return, you will know the necessary resources to build the entire solution, you’ll uncover uncertainties, and it’ll help you focus on your goals.

Helps you shape your forward-thinking into reality

PoCs will make you consider logistics ahead of time, so you can streamline your work and advance more efficiently to the next step.

PoCs give you a strong start with investors. If an idea is too big for the world to grasp easily and you need the public or your investors’ trust, use a PoC to showcase an overview of the risks and rewards you can foresee. The chances of success will be far higher than going in front of them with a simple pitch deck.

Identify and mitigate roadblocks

Sometimes, a PoC will demonstrate that your idea is feasible but super expensive. Or extremely difficult to put in place. It can be a matter of scaled manufacturing, rare technology, or any other logistic problem. A PoC will help you prepare for the challenges ahead or pivot your idea (and build another PoC).

On the other hand, PoCs are not meant to be re-used or exposed to customers, and it is definitely not scalable. Once you build a PoC, its goal is achieved.

6 steps to writing a proof of concept

A successful proof of concept should always have the following elements: clear goals , defined metrics, realistic assumptions, and an appropriate scope.

And before going through the steps of developing (ideation, defining requirements, building a prototype, testing, and validation), you first have to write the proof of concept.

1. Problem definition and target audience identification

It is crucial to define the problem you want to find the solution for and the audience (end-user, influencer, and decision-makers). This will define if your PoC will be functional, visual, or experimental.

2. Identify necessary stakeholders

Ensure that everyone’s interests and needs are considered and outline all the contributors needed for the creation process.

3. List available resources

Jot down all the available resources you have. This includes your team and capabilities, production materials or partners, budget limitations, and the plan for the PoC.

4. Define success

To evaluate the PoC effectiveness, you need to define the exact use case you want to cover and specific metrics to look at . The metrics will help you figure out if your idea is meeting the idea of the use case. A few examples of metrics to look at are:

  • Return on investment (ROI) or cost-effectiveness: this metric help you determine whether the PoC is financially viable. Will it cost too much money to scale up? Should it be discontinued? Is it cost-effective to develop and implement? To measure cost-effectiveness, you should consider all development costs, operational costs, and potential savings that your new solution can provide
  • Functionality and integration : these metrics work through user feedback, testing the features, and demonstrating the feasibility of integrating the solution with existing systems (in terms of compatibility, amount of time needed, and resources)
  • Business impact : this can be measured by assessing the potential benefits that the solution can provide while considering the impact on business processes, operations, and competitive advantage5.

5. Write down the PoC scope

People tend to start with a PoC, and soon enough it becomes a prototype or an MVP. Write down your scope to ensure that the outcome will be achievable and, most importantly, relevant to the problem being addressed.

6. Create a timeline and next steps

Finally, record a realistic timeline and the context of the PoC, including the start date, process, and next steps based on the outcome. For example, write down if the idea is not feasible if it is feasible but if you lack certain resources, if the idea is feasible and within the success definition, etc.

Proof of concept template

To make things easy, I created a PoC template , aka a creation canvas, for you to download off of Google Sheets. The template comes with an example as well.

With this template, you can easily organize your PoC goals and information to ensure an impactful outcome.

Conclusion and key takeaways

Proofs of concepts (PoCs) exist to help you know if an idea or solution is feasible in certain conditions. Do not forget that it’s never meant to be used for user-facing interactions, nor to build on top of — PoCs are very unstable, very much like an experiment.

Building the PoC will guide you forward, and you can better plan your time, resources, risk mitigation assessments, and a competitive advantage for the next iterations.

Writing a PoC helps you stay focused on what you want to achieve. It frames the problem, scope and expectation, audience, stakeholders, resources, success definition, and timeline.

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Proof of Concept Templates to Transform Your Vision into Action

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Ever wondered how innovative ideas become reality? Proof of Concept (POC) is the key. It’s a trial phase where you test ideas before diving in, minimizing risks and refining plans. Used in tech, business, and research, POC makes sure that your concepts can tackle real-world challenges. In this comprehensive guide, we will walk you through what is a PoC, steps and tips to create one, along with ready-to-use templates to help you get started right away.

Proof of Concept Template

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What is a Proof of Concept (POC)

A Proof of Concept is essentially a trial phase, a preliminary step that allows you to experiment and assess the feasibility of your ideas before committing significant resources. It is a practical way to test whether a proposed solution or innovation can perform as intended and address specific challenges before committing to full-scale development or implementation.

POCs are commonly used in fields like technology, business, and research to assess ideas, minimize risks, and make decisions. The goal is to gather evidence that supports the concept’s effectiveness and helps stakeholders make informed decisions about further investment.

What is a Proof of Concept Template

A Proof of Concept template is a structured document that outlines the purpose, objectives, scope, methodology, timeline, budget, success criteria, risk assessment, and data analysis plan for testing the feasibility of a concept or idea. Using a POC template, you can plan, execute, and evaluate the Proof of Concept, making sure the viability and potential success of the idea is validated in a systematic and organized way.

Proof of Concept Templates

One-Page Proof of Concept Template

Blank Proof of Concept Template

POC Template

Product Brief Template

When Can You Use a Proof of Concept Template

You can use a Proof of Concept template when you need to assess feasibility and viability of a new concept, idea, or project before you start it up. POC templates are useful for a lot of things, like:

New product development : A POC can validate market acceptance and technical feasibility before investing heavily in a new product.

Technology evaluation : POCs can test a new technology’s compatibility, performance, and impact on existing systems before adopting it.

Business process improvement : When planning to implement a new business process or system, a POC helps identify potential challenges and assess the practicality of the proposed changes.

Research and development : Proof of Concepts can help validate experimental hypotheses or test a new approach’s functionality in science and research.

Innovation initiatives : A Proof of Concept helps validate whether an innovative idea can work before committing significant resources.

Software development : A POC can be used in software projects to test new development methods or a specific feature.

How to Write a Proof of Concept

Follow the steps below to create a comprehensive and well-organized Proof of Concept document.

1. Define clear objectives

Clearly outline the goals of your POC. What are you trying to prove or achieve? Define specific, measurable objectives to guide the execution of the POC.

2. Identify key success criteria

Determine the criteria that will indicate whether the POC is successful. These should align with your objectives and provide measurable benchmarks for evaluating outcomes.

3. Scope the POC

Clearly define the scope of the PoC. What features or aspects of the concept will you be testing? Be specific about what is included and excluded to maintain focus and clarity.

4. Choose the right methodology

Select the appropriate methods for testing your concept. This could involve creating a prototype, running simulations, conducting experiments, or any other method that aligns with your objectives.

5. Develop timeline and allocate resources

Create a realistic timeline outlining key milestones and allocate necessary resources, including personnel, equipment, and budget.

6. Build a prototype (if applicable)

If your PoC involves a tangible product or solution, create a prototype. This could be a simplified version to test the core functionalities and validate the overall concept.

7. Execute the POC and analyze results

Follow the defined methodology to conduct the Proof of Concept, recording data and observing outcomes. Analyze the results against established success criteria, determining if the POC met its objectives.

8. Document findings and recommendations

Prepare a comprehensive report documenting the findings of the PoC. Include insights, lessons learned, and recommendations for future steps, whether it involves further development, refinement, or discontinuation.

Create Your Proof of Concept with Creately

Improve teamwork, streamline processes, and create a dynamic environment for developing and presenting your Proof of Concept with Creately .

Brainstorming and ideation

Use Creately’s shared canvas to brainstorming ideas collaboratively with your team and shape the initial thoughts for the POC. Team members can contribute ideas, draw sketches, and visually organize concepts easily using Creately’s easy drawing tools including comprehensive shape libraries for over 70 diagram types and advanced table shape with powerful customization options, drag and drop interface and keyboard shortcuts, pre-made templates, preset color themes, Plus Create and more.

Project planning and timeline

Use Creately’s built-in project management features including Gantt charts or Kanban boards to plan and visualize the project timeline and track progress. Assign tasks and set deadlines easily with Shape Data.

Real-time collaboration and communication

Foster real-time collaboration and communication through live mouse tracking, synced previews, and comments. And make use of Creately’s plugin for Microsoft Teams to discuss findings, share insights, and address any challenges as they arise during meetings.

Documentation and reporting

Collaboratively prepare reports and documentation with powerful documentation capabilities with per-item notes with tables, attachments and more. Team members can contribute to summarizing findings, insights, and recommendations in real-time.

Share and present

Easily share the Proof of Concept template with collaborators and stakeholders with advanced sharing permissions and controls. Quickly present your workspace with full-screen view mode - click on anyone’s avatar in the header to follow them or on your avatar to spotlight yourself.

The Proof of Concept is a crucial step in developing and validating innovative ideas. The purpose is to demonstrate a concept’s feasibility in a practical way, mitigate risks, inform decisions, and refine plans before full-scale implementation. A well-executed PoC can make a huge difference in the likelihood of success, whether in technology, business, or research. Hopefully, this guide on Proof of Concept templates will be a valuable resource for individuals and teams seeking to navigate the crucial phase between ideation and implementation.

Join over thousands of organizations that use Creately to brainstorm, plan, analyze, and execute their projects successfully.

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Amanda Athuraliya is the communication specialist/content writer at Creately, online diagramming and collaboration tool. She is an avid reader, a budding writer and a passionate researcher who loves to write about all kinds of topics.

What's a Proof of Concept? The Complete Beginner's Guide

As a product manager, or simply as someone involved in the product development process , you’ll naturally want to create a great product that works. 

But successful products aren’t just those that meet your organization’s strategic goals. They also need to be well-designed, intuitive to use, and meet the needs of your customers. 

All this is why, before diving into full product development, product managers often use what’s known as a proof of concept.

A proof of concept (POC) has multiple uses. For starters, it shows investors, executives, and other stakeholders why the product is worth pursuing. And from a project management perspective, it also allows you to test a product’s feasibility before committing time and resources to its full development. 

In this article, we’ll explore what a proof of concept is, what it’s used for, and how to create one. We’ll cover:

  • What is a proof of concept?
  • Advantages of a proof of concept
  • What’s the difference between a proof of concept and a prototype?
  • What’s the difference between a proof of concept and an MVP?
  • How to write a proof of concept: Step-by-step guide

Ready to supercharge your next POC? Then let’s dive in.

1. What is a proof of concept?

In product management, a proof of concept (commonly referred to as a POC) is a demonstration—usually code-based—proving that a product can be successfully implemented.

A key step in the product development lifecycle, it occurs early in the process, before significant resources have been committed to product development. Typically, we use a POC to show that a proposed solution is practically feasible and to try and gauge its potential impact.

Because the proof of concept is only a test, it usually differs from the eventual end product. And since most projects also include a prototype stage, some may believe POCs are unnecessary. However, testing a product’s mechanics early on can offer much insight, saving you pain and cost overruns later on.

While it can take numerous forms, in product development, POCs are usually similar to a small-scale prototype or simulation. 

It’s important to emphasize that a proof of concept is not the same thing as a working product. 

Rather, it’s a way of testing if an idea is worth pursuing. Not all POCs will become products. But the best products will start as a solid POC.

2. Advantages of a proof of concept

POCs are not limited to product management —they’re used for everything from devising project management methodologies to business tasks. However, they’re perhaps most commonly used in software product development .

Unfortunately, when time and budgets are tight, the proof of concept stage is often an area where product managers cut corners. This is because POCs don’t take up a lot of time, which makes it easy to presume they’re dispensable. However, that’s far from the case.

There are several advantages of employing them. Four of the most important ones are that they help to:

Reduce risk

Reduce development costs, ensure better products, attract investment and stakeholder buy-in.

Let’s take a look at each of those advantages briefly:

By its very definition, the purpose of a proof of concept is to test and determine whether an idea can work in practice. 

If the answer is no, you’ll have saved yourself a lot of time, effort, and money that otherwise would have been wasted by jumping right into development. 

Even if the answer is yes—it’s successful—you’ll still have done yourself a favor, saving money that you would have otherwise spent doing costly development work upfront.

A failed POC helps product managers avoid the cost of building software products that will never be used, while successful ones can refine a product’s design.

A successful proof of concept will give you confidence in your product idea. 

It’ll allow you to validate any assumptions and ensure that the product is fit for purpose. Does it meet your strategic objectives as well as customer needs?

If you need to make changes, the POC may not highlight everything you will bring to fruition in the final product, but it’ll likely help you to spot major issues that need fixing early on.

You can also use a successful proof of concept to attract investment and buy-in from stakeholders. 

Demonstrating its viability will assure stakeholders that the product has a high chance of success. Using a POC for this purpose is especially important for start-ups, which often have to pitch their ideas to potential investor partners.

3. What’s the difference between a proof of concept and a prototype?

So far, there might not seem to be a big difference between a POC and a prototype. And while they do share some similarities, they’re quite distinct. 

The key difference is that while a POC demonstrates a solution’s feasibility, a prototype is a working model of the end solution. And, since prototypes build on the data collected from a POC, it’ll be a more polished version of the end product.

If you’re not sure how to tell the difference between a POC and a prototype, here are some key features to look out for:

If you’d like to see how a prototype differs from other similar design terms, check out our guide to prototypes vs wireframes vs mockups .

4. What’s the difference between a proof of concept and an MVP?

If you’ve been anywhere near a product development lifecycle, you’ll also have come across what’s known as a minimum viable product , or MVP . 

Again, while an MVP shares similarities with both POCs and prototypes, it has some distinguishing features of its own.

In the same way that a prototype builds on a proof of concept, an MVP builds on a prototype . Essentially, it’s a working version of the product that has just enough features and functionality to meet a customer’s demands.

It’s then used to obtain feedback from end users, helping inform product development over time.

Once again, if you aren’t certain how to distinguish between a POC and an MVP, look out for the following differences:

5. How to write a proof of concept: Step-by-step guide

One thing is for sure—these are a vital aspect of the product development cycle. As an essential pilot of your product, you should give it the appropriate level of attention. 

Here are the main steps for writing a POC:

1. Identify the problem you are aiming to solve

Bring together key team members, including stakeholders, to identify the problem you want to solve. 

Identifying the problem often begins with market research to determine your target audience’s habits, needs, and desires. Based on this information, you can then create a typical user persona and better understand their needs.

Alternatively, if you’re creating the product for a client, they may already have identified the problem. For instance, perhaps your client is a supermarket chain consistently struggling with long self-checkout queues in their stores. 

Whatever the problem, once you’ve identified it, you can conduct research into other products on the market before devising your own solution.

2. Describe your solution

Next, outline your proposed solution to the problem. The product might be an app, a platform, or some other type of software. 

You should draw a potential solution from insights from the wider team or the client. For instance, if you’re trying to solve the problem of the long self-checkout queues described in step one, perhaps you need to redesign the client’s software. 

Your proposed solution should include an estimated product development timeline and the resources you expect to need to achieve this goal.

3. Explain why your solution will be effective

Naturally, there’s no point in creating a POC without explaining how it will benefit the client and end user. 

Rather than simply saying: “we will redesign your checkout software” be specific and explain exactly how you will do this and why.

For instance, maybe you need to create new software that eliminates the need for staff members to approve certain purchases, thereby reducing queuing time. Your POC therefore will test this new functionality. 

The solution doesn’t need to be complex or over-engineered, but it does need to be very clear.

4. Outline the scope of work

Next, outline the scope of work for the proof of concept. The scope of work is where your initial discussions with the team will come in handy. 

Outline what will be involved in creating the POC, the human input and skills required, whether or not you can achieve it alone, or if third-party involvement is needed.

The scope of work is also the place to determine a technical solution, success metrics, and how you will track these. For instance, can you pilot your POC using the client’s existing test environment? Or will you need to devise something from scratch?

Another consideration is the features you want to test. Often, a proof of concept will focus on just one or two core features rather than the entire product concept.

For instance, if the client is generally happy with their checkout software and simply wants to make some tweaks, you don’t need to reproduce the whole product: just the aspects that might need updating.

Keep in mind: While not all of these things may seem vital to proof of concept planning, they’ll be important further down the line. Whether or not you decide to pursue the POC in its current format is almost irrelevant. All this information will inform your product, whether you stick with your current plan or change track completely.

5. Build the proof of concept and test

Finally, select a platform on which to build your POC. Hopefully, this is already in the scope of work. It might be a client test environment or another software solution. 

You’ll then need to build your POC. Remember: This is not a working product . It’s not even a prototype. You’re just testing the feasibility of the concept, so you may need to keep an eye on the development team to ensure they are not spending more time on it than they need to.

Once your proof of concept is up and running, you should test it with “users”. These users will likely not be the end users, but colleagues working outside the development team. 

It doesn’t matter that they aren’t your target audience. The main thing is that they can offer a sense check and ensure the POC meets its core objectives. 

If feedback suggests that it hasn’t met its aims, this may be the point where you abandon a proof of concept and return to Step 2.

6. Report your findings

Last but not least, report your findings. Even if you had great feedback from your test users, this is where you need to analyze your key performance indicators to ensure the proof of concept did the job it set out to do. 

You’ll also need to report on preliminary lessons learned and, if appropriate, your recommendations.

The reporting stage can vary—you may need to present the POC directly to clients, to internal stakeholders, or it might be sufficient to write a report of your findings for the executive team to read.

The main thing is to document everything you can and be open and impartial about the proof of concept’s degree of success or failure.

If the proof of concept is successful , you’ll need to take your findings and use them to inform your product roadmap . This might mean changing strategy or continuing with your plan. 

If it’s unsuccessful , you’ll need to analyze your findings to understand why that’s the case. This will help you decide whether or not to continue with the project. If it’s a failure, or the stakeholders reject it, that’s okay—that’s exactly why you conducted the POC in the first place.

Now, aren’t you glad you tested it before diving headfirst into development? 

6. Next steps

So there we have it! Everything you need to get started with a proof of concept. Grasping what they are is key if you’re looking to become a product manager .

In this article, we’ve explored what a POC is, why it’s important, and how it compares to a prototype and a minimum-viable product. We’ve also outlined the steps you’ll need to take to create and test one, and to report your findings.

As we’ve learned, a POC is a great way to test the feasibility of an idea before committing time and resources to it.

By following the steps outlined here, you can be sure that your POC is well-designed and informative and that it will give you the insights you need to make informed decisions about your product.

If you enjoyed this blog post and want to kickstart your career as a product manager, why not sign up for this free Product Management for Beginners course ?

Alternatively, check out the following articles to learn more:

  • How to Write a Winning Product Manager Resume
  • These Are 9 of the Best Product Management Schools
  • The Complete Guide to Product Manager Job Descriptions

Actionable tips, community conversations, and marketing inspiration.

Proof of Concept: What It is and How to Do It Right

Laura Smous

Laura Smous

Senior Director of Product Marketing @ AdRoll

Topics Covered:

  • D2C/Ecommerce

Today’s businesses have it tough. The consumer-driven and technology-based startup field is home to thousands of new ideas — but a great idea doesn’t necessarily mean immediate success. In fact,  almost 90% of new startups never make it off the ground and 95% of new products struggle to find a market and end up failing .

Before jumping headfirst into selling a product, businesses need to iterate on their idea by building a “proof of concept.” 

What is a Proof of Concept

Proof of concept (POC) is a test conducted to validate that a product or idea is feasible to take to the commercialization stage. For many companies, especially those that focus on one or two products, a proof of concept can be an essential component of early stage planning of building a business .

business plan proof of concept

Proof of concept is a key step before actually prototyping and launching a product. Source

A POC can be a document, presentation, or demo. Companies provide it to potential investors, managers, and other stakeholders to demonstrate the idea’s viability and gain approval and funding.

A POC report contains a range of information and data learned during the testing process, including:

Customer feedback

Competitor research

Business analysis

Projected financials

Go-to-market strategy

Depending on the complexity of the idea, proof of concept development may be more or less intricate and detailed. Ideally, though, it shouldn’t take longer than a few weeks or months to complete.

A POC may sound like a pitch, but it’s more thorough than that. Its purpose is not just to entice investors with marketing hype. Rather, a POC aims to prove to all stakeholders that there is a need in the market and that the idea is ROI positive.

The POC process varies greatly depending on the type of product, the complexity of the development phase, the intended target audience, and more. For example, the POC for a business-to-business (B2B) software solution must show the capabilities of the technology and its features, and how it fits within client systems and requirements. This is clearly different from a POC for a new toy or other B2C product.

How to Write a Proof of Concept

Regardless of niche or vertical, every potential business idea should follow these essential steps for thorough proof of concept development:

Prove there’s a need or a gap in the market

The first stage of a POC is proving that the idea fills a need or gap in the market. If it does, it’s far more likely to attract a customer base and succeed.

The best way to prove a need in the market is by identifying potential customers and understanding their pain points. How does the business idea or product solve the customer’s problem? What is it about the product that would entice people to buy it? You can find the answers to questions like these by engaging directly with customers and getting their feedback.

Companies can accomplish this first step with the help of online market research tools, such as Survey Monkey and Recollective . Focus groups and face-to-face interviews are also effective ways to accurately assess customer sentiment. 

business plan proof of concept

Instagram Story polls are a great way to get a ton of insight from your target audience. Source

Any business or product must have a large or loyal customer audience to succeed. According to a PwC Innovation study,  35% of companies say that customers are their most important innovation partners . Companies shouldn’t underestimate the power of customer feedback in the earliest stages of the proof of concept.

For more on identifying potential customers and their pain points:

A Step-By-Step Guide to Creating Buyer Personas

Building buyer personas is the most critical step in achieving personalized and accurate marketing campaigns that will satisfy these audiences.

Step 2: Create a product demo and test it

Before jumping in and developing a fully-fledged prototype, create a basic product version and test it on a focus group of potential customers. Based on the test group’s feedback and experience, teams can further develop according to their market or demographic’s needs.

This incremental approach saves time and effort, enabling minimum use of resources to get maximum effective feedback. The demo can undergo necessary iterations based on repeated adjustments and testing until arriving at a minimum viable product (MVP) that’s more likely to lead to success in the commercialization stage.

business plan proof of concept

When it comes to creating a MVP, duct tape and glue are A-OK. Source

If there are budget and time constraints,  consider using social media  to validate your product idea.

Step 3: Create a Minimum Viable Product (MVP)

Minimum Viable Products or MVPs allow companies to launch a product or service quickly and cost-effectively. In a competitive landscape, prompt launches can be a lifesaver. More importantly, they provide an essential test base of customers, which can influence feature development. These customers can even help with idea validation: If the MVP fails to gain traction, it could signify that further resources and time aren’t a wise investment.

Step 4: Lay out a go-to-market roadmap

Once the market demand for the idea is validated and the demo finalized, the next step is outlining in detail the step-by-step strategy for getting the idea to market. This will require research and planning of the technical aspects, including manufacturing, logistics, distribution, marketing, and sales, as well as a breakdown of the financials involved.

The roadmap must show that the commercialization process is lean, optimized, and a worthwhile investment.

Step 5: Use POC to tell a story

On the one hand, a POC is not a sales pitch. It’s a feasibility study that provides investors with the proof they need to feel secure and commit to necessary funding. However, investors are human like everyone else. The best way to capture their attention (and investment) is to go beyond the dry financials and technical proof by weaving them into a compelling and engaging story.

Whether a document, report, or presentation, the POC should incorporate classic storytelling techniques, much like any small business marketing plan . This can be achieved using personas that add human dimension to ensure investors don’t get bored and lose interest. 

Always remember to focus on the larger question — how does the product or idea change the world, improve humanity, or (more realistically)  make the customer’s life better ? The big-picture impact is key to creating a convincing POC.

For storytelling tips: 

4 D2C Companies Doing Brand Storytelling Right

D2C brands continue to utilize brand storytelling to build customer loyalty. In this post, we show how you can replicate their tactics.

Why is Proof of Concept Necessary?

Eager to get to market, many businesses rush through the POC process or skip it altogether. This is a big mistake. Taking the time and resources to develop a POC is an important part of the development process and can help prevent a product from becoming one of the vast majority that ends up in the dustbin.

Here are several reasons why a solid POC is necessary:

POC validates an idea

The primary aim of a POC is to test whether an idea can be realized as a marketable, profitable product. Is there a need or gap in the market? Who’s the potential customer base? Is it a worthwhile investment? Will it be ROI positive? The POC provides answers to these questions and validates the idea before anyone invests money, manpower, or time.

POC helps gain investors

Every investor wants to know that they are backing a winner. However, no serious investor will fund an “idea.” A POC provides proof that the concept is financially sound, and is vital to attracting interest and funding from investors, senior managers, and other decision-makers.

POC resolves issues and obstacles before commitment

A POC provides a clear picture of the problems that may arise during the development and marketing phase. For example, a POC can show that the pain points the product addresses aren’t actually aligned with the target customer base. This kind of problem can be identified during the surveying stage based on focus groups and customer feedback. Then, the concept can be altered to better match the real consumer need.

POC saves money in the long run

The POC may reveal that the MVP needs a major adjustment to meet the needs and expectations of the end user. Resolving these issues is far easier during the POC process than during the development or commercialization phase. The costs involved are negligible compared to the costs of redesigning a prototype or re-issuing a new, updated product.

POC increases the chances of commercial success

A POC provides an opportunity for a theoretical “dry run” to test the costs, time frames, parameters, and requirements of product development without any risk. Developing a product is hugely time consuming and expensive. A POC outlines the entire commercialization process in advance and involves a preparation stage to boost the probability of success. 

POC is a learning opportunity

As you develop your POC, you’ll dive deeper into your product or idea. A great POC will include information about your customer profile, sales and marketing plans, and competitors, which will be tremendously useful as you move closer to your launch date. 

But these research learnings alone aren’t enough to sustain growth in the long term. For the best results, you’ll need to make sure you integrate all your data, analytics, and cross-channel tracking as sales start rolling in.  AdRoll  can provide you with the insights and numbers you need — check out how our  Cross-Channel Performance Dashboard  can supercharge your campaigns and marketing efforts. 

When there’s just a 5% chance that a new product will succeed and a 10% chance that a new startup will survive, the importance of the POC becomes crystal clear. “Good ideas” hit store shelves every day, and most will certainly fail. The POC process is about building a case and showing investors the idea’s true value.

In the court of approval, the difference between “yea” and “nay” will come down to the rigor and quality of the evidence presented in the POC. If a company is serious about getting investors on board and their product to market, a POC is not a choice — it’s a necessity. 

Leverage Your Proof of Concept in Your Marketing Strategy

Creating a POC and MVP for your product development takes time and resources, but that investment is essential. Leveraging them as part of your marketing strategy can be just as important. Learn more about creating a strategic marketing plan with our resources below.

Need some extra help developing your proof of concept template? This proof of concept worksheet can help.

Proof of Concept FAQ

What is the difference between proof of concept, prototype, and proof of value.

While concepts like proof of concept, prototype, and minimum viable product may sound similar or be used together, each one represents different stages of the product development process. It may be tempting to rush through each stage or skip them altogether to launch products faster, but each step plays an integral part in a company’s go-to-market strategy.

Proof of concept

A proof of concept is a basic version of the idea or product. Its purpose is to demonstrate that the idea isn’t just feasible, but worth pursuing.

A prototype is an early version of a product. While it can provide users with realistic experiences and showcase the look and function of a product, it’s usually not complete. Many prototypes lack end-stage features but demonstrate core functions enough to go through the testing process.

Minimum Viable Product

A minimum viable product describes any final-stage product with the basic features necessary for effective customer use. Minimum viable products offer a complete experience, even though they lack optional features a company may want to add in the future.

Last updated on March 14th, 2023.

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What is proof of concept (poc).

business plan proof of concept

Proof of concept (POC) is a method that enables a project management team or other professionals to determine, demonstrate, and validate the feasibility or viability of an idea, product, concept, solution, or hypothesis. It is a crucial and essential step taken by researchers and businesses to evaluate the practicality and feasibility of translating a vision or theory into a tangible, practical application.  

Why use the Proof-of-Concept (POC) methodology?

In various fields, such as business, technology, science, and engineering, executing a proof of concept serves several purposes:

  • Feasibility testing: It assesses whether a concept or idea can be implemented practically and if it will function as intended.
  • Risk reduction: Conducting a proof of concept helps identify potential risks, challenges, or limitations associated with the idea early in the development process.
  • Validation: It provides evidence that the concept or technology is achievable and has the potential to solve the intended problem or meet the desired objectives.
  • Attracting investment or funding: A successful proof of concept can make a project or idea more attractive to investors or stakeholders by showcasing its potential value and feasibility.
  • Decision-making: It assists in making informed decisions about whether to proceed with further development, investment, or implementation of the concept.

Read more : The 5 Phases of Project Management

In this article...

How do you apply POC in project management or product development?

The process of executing a proof of concept (POC) involves several steps to validate the feasibility or viability of a concept, idea, or hypothesis. While the specifics can vary depending on the context (business, technology, science, etc.), the general steps for conducting a proof of concept typically include:

Defining objectives

Clearly define the goals and objectives of the tested concept. Understand what aspects of the idea need validation and what success criteria will be used to determine the POC’s success.

Hypothesis formulation

Develop a hypothesis or set of assumptions based on the concept. This involves outlining expectations and predictions about how the idea will perform or function under certain conditions.

Planning and design

Create a plan outlining the methodology, resources required, and the scope of the proof of concept. Determine the resources, time, and personnel necessary to conduct the test effectively.

Prototype or test implementation

Build a prototype, conduct experiments, or implement a test environment to demonstrate the concept. This step involves creating a smaller-scale version or model that represents the core features or functionalities of the idea.

Data collection and analysis

Gather data and metrics during the execution of the proof of concept. This could involve measurements, user feedback, performance metrics, or other relevant data that helps evaluate the concept’s success against the defined objectives.

Evaluation and interpretation

Analyze the collected data to assess the results against the initial hypothesis and success criteria. Determine whether the proof of concept demonstrated the expected outcomes and whether the idea is viable.

Documentation and reporting

Document the findings, including successes, challenges faced, limitations discovered, and critical insights obtained during the proof of concept. Prepare a report or presentation summarizing the POC’s outcomes.

Decision-making

Based on the results, stakeholders can decide whether to proceed with further development, investment, or refinement or potentially abandon the concept if the proof of concept does not meet the desired criteria.

Based on the findings, it’s crucial to maintain flexibility and openness to iterate or pivot throughout this process. A proof of concept is often an iterative process, and lessons learned from one POC can inform the next steps or modifications to the concept being tested. Successful proof of concept testing and strategies can provide valuable insights and validation crucial for making informed decisions about moving forward with a concept or idea.

Read more : Looking for the latest in Project Management solutions? Check out our Project Management Software Guide .

Proof of concept for project managers and other professionals

Various professionals in multiple industries use proof of concept techniques or methodologies. You can expect to find these in use throughout any of the following spaces:

  • Technology (including startups): In tech or startup spaces, POC is applied to rapidly determine the feasibility of an idea, product, or solution. This helps avoid wasted manpower, resources, and expenditures.
  • Sales & marketing: POC can help sales and marketing teams determine pre-sales activities or the potential profitability or demand for a product, solution, or service. 
  • Business development: In this particular discipline, POC helps determine two major considerations—mitigating risk (losses) and assisting in decision-making processes before making a financial commitment. 
  • IT: The main objective of POC in this space is to determine whether a concept or idea can be realized.
  • Software development and testing: Generating evidence proving or disproving the feasibility of a software solution.
  • Healthcare (including pharma): This specialized application of POC is conducted outside the laboratory testing environment and is implemented through bedside testing, remote testing, rapid diagnostic testing, and bedside or patient testing.
  • Manufacturing: In this space, POC allows enterprises to test an idea before committing production-level resources. 
  • Product development: As with other applications of POC, this one also tests, validates, and measures feedback on a feature, product, or solution before committing resources to complete development.

Read more : 8 Common Project Risks & Examples

Step-by-step guide to POC in projects

Before commencing a POC project analysis, creating a blueprint or template for a proof of concept (POC) helps structure and organize the process effectively. 

Here’s an outline of elements that typically belong in a POC blueprint template:

Title and overview

Title: Clearly define the name or title of the POC.

Overview: Provide a summary outlining the purpose, objectives, and expected outcomes of the POC.

Background and context

Problem statement: Describe the specific problem or challenge the POC aims to address.

Context: Explain the background information or industry context (software, manufacturing, startup, etc) relevant to the problem.

Objectives and success criteria

Objectives: Clearly define the goals and objectives the POC aims to achieve.

Success criteria: Identify the key metrics or criteria that will determine the success or failure of the POC.

Scope and deliverables

Scope: Define the boundaries and limitations within which the POC will operate.

Deliverables: List the expected outcomes, reports, or tangible results that will be produced at the end of the POC.

Methodology and approach

Methodology: Explain the approach, methodologies, tools, and technologies utilized during the POC project.

Implementation plan: Provide a step-by-step plan detailing how the POC will be executed, including timelines, resources, and task distribution.

Data and resources

Data requirements: Specify the data sources, datasets, or information needed for the POC.

Resource needs: Identify the resources required, such as hardware, software, personnel, and external support.

Risk assessment and mitigation

Risk analysis: Identify potential risks, challenges, or obstacles affecting the POC.

Mitigation strategies: Outline plans to address or mitigate identified risks.

Execution and monitoring

Execution plan: Detail the steps for implementing the POC and monitoring progress.

Monitoring and evaluation: Explain how progress will be tracked, data collected, and the process of continuous monitoring during the POC.

Results and analysis

Results summary: Present the findings and outcomes obtained during the execution of the POC.

Analysis: Analyze the collected data, compare it against success criteria, and draw conclusions based on the results.

Recommendations and next steps

Recommendations: Provide insights, suggestions, or recommendations based on the POC’s outcomes.

Next steps: Outline the suggested actions based on the POC results—whether to proceed, modify, or discard the concept.

Documentation plan: Detail how information, processes, and findings will be documented throughout the POC.

Reporting: Explain how the final report or presentation will be structured and to whom it will be presented.

Customize this blueprint template according to your Proof of Concept’s specific requirements and nature to ensure a thorough, successful, and organized approach to its execution.

Read more : Top Innovative Project Management Strategies

Proof of concept software solutions

Multiple great solutions can help any business or enterprise manage, analyze, create, and render accurate, invaluable proof-of-concept strategies, including the following:

Jira is a top-rated and effective agile software solution for the issue and concept-tracking tool for teams. It was introduced in 2002 and is used globally by many enterprises. Jira readily integrates with thousands of other apps. Jira’s core function tracks software bugs, fixes, tasks, coding, testing, and release. Its features include push notifications, device availability, update tracking, team comments and developments, and more. Software development teams, companies, and other enterprises favor Jira.

Asana is a very popular mobile project management and light CRM tool. It is web and mobile-enabled project management software that is easy to use and designed to help teams quickly and easily organize, communicate, track, and manage all their projects. Asana’s interface allows team members to view a “board” of work and project progress. Asana is free to teams of 10 members or less and then paid for larger teams. 147,000 enterprises and millions of users use Asana for project management (including POC). Asana can be an excellent tool for presenting final data analysis and other developments.

Like Asana, Monday is a popular, user-friendly, versatile PM/POC software option with great features enabling teams to plan, track, and execute all their projects, including POC tasks. Some of the unique features of Monday include the ability to create custom fields, rule-based automation, easier setup and usage compared to Jira, 200 premade project templates, a simple, streamlined interface, and a free plan for solo users or duos. Over 186,000 enterprises use Monday for POC and PM tasks, and users use it in over 200 industries.

Key POC takeaways

Key takeaways from a proof of concept (POC) strategy provide valuable insights and learnings that influence future decisions and actions. Here are some essential takeaways:

  • Feasibility assessment: Determine whether the proposed idea, technology, or approach is feasible based on the POC results. Understand the strengths and limitations observed during the testing phase.
  • Validation of concept: Assess if the POC validates the initial hypothesis or idea. Determine if it meets the defined objectives and is viable for further development or implementation.
  • Risk identification: Identify risks, challenges, or obstacles encountered during the POC. Understand potential roadblocks hindering the concept’s success when moving towards a larger-scale implementation.
  • Performance metrics: Evaluate the concept’s performance against predefined success criteria and key performance indicators (KPIs). Measure the quantitative and qualitative outcomes obtained during the POC.
  • Cost and resource analysis: Analyze the costs, resources, and labor required to implement the concept at scale. Consider scalability, maintenance, and sustainability aspects based on the POC findings.
  • Lessons learned: Document lessons learned from the POC process. Understand what worked well, what didn’t, and why. This helps in refining and optimizing strategies for future projects or iterations.
  • Decision-making insights: Provide valuable insights and data-driven information to stakeholders, assisting them in making informed decisions regarding the project’s future direction.
  • Roadmap refinement: Use the insights gained to refine the project roadmap or development plan. Modify strategies, timelines, or objectives based on the POC outcomes to optimize future implementation.
  • Communication and collaboration: Enhance communication among team members, stakeholders, and relevant parties based on the knowledge and findings acquired during the POC.
  • Innovation and iteration: Encourage innovation by using POC takeaways to iterate, improve, or pivot the initial concept. Embrace continuous improvement based on feedback and data-driven insights.
  • Go/no-go decision: Ultimately, the POC takeaways should clarify whether to proceed with the concept, modify it, or discontinue it. This decision should be based on a comprehensive analysis of the POC findings.

By focusing on these key takeaways, organizations can maximize the value derived from conducting a proof of concept, guiding the team and enterprise toward informed decision-making and successful project implementations.

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Free proof of concept template to help prove idea viability

business plan proof of concept

Every great product, service, business idea, and technology started with an unproven theory that was then tested and found to be viable. If you think you’ve concocted your industry’s next big thing, you’ll need to prove its viability to upper management, clients, or other stakeholders to get your go-ahead. That’s where a proof of concept template comes in. This valuable business tool helps you prove that your idea isn’t only possible, but also needed.

Today we’ll discuss how to use a proof of concept and introduce a free customizable template you can use to make the process easier. We’ll also share how pairing this template with monday.com’s Work OS can help simplify and optimize every stage of your idea, from inception and testing to development and completion.

Get the template

What is a proof of concept template?

A proof of concept (POC) is a document providing evidence that an idea you had was viable and that there’s a need for it.

You can apply a proof of concept template to software and product development, a business idea, and more. Organizations often use this approach to determine the feasibility and profitability of concepts before moving forward with production. A template makes testing an idea and presenting it to the appropriate stakeholders simpler and more efficient than starting from scratch.

Why use a proof of concept template?

Using a POC template can help you:

  • Ensure your idea can be successful:  A POC allows you to test the idea you had to ensure it’s possible and profitable for your company or client. Ensuring an idea will work before beginning a project can save a lot of potentially wasted time, money, and effort.
  • Determine idea feasibility faster:  A POC template provides a foundation that lays out all the information you need to ensure your idea works in the real world. This is significantly faster and more efficient than starting your POC from scratch.
  • Ensure you don’t miss any essential information:  Since a template provides a uniform starting point for all your POCs, it ensures you don’t miss data or steps that could skew the results of your test, research, or working model.

To fully understand why you might want to use a proof of concept template, it might help to see some real-life examples of their uses.

What are some examples of proof of concept templates?

There are several situations where you may want to use a POC template to prove an idea. For example, you may use these templates to prove a business plan or product idea are viable for your company and target audience.

Business plan proof of concept

You might use a business plan POC when:

  • You’re considering investing in a startup
  • You acquire a company that’s already been built and believe its processes could use improvement
  • You have ideas on how your company could improve internal processes to meet goals
  • (As project managers) you have a project idea you believe would benefit your company

It helps to understand your success criteria before undertaking your testing and research, so you can make the clearest end decision.

Product idea proof of concept

You might use a POC to test your idea for a new product or service. You may find it helpful to work with team members who can provide additional subjective insight on the product during testing. When creating a product idea POC, remember to ask yourself:

  • Why do our customers need this product? What problem does it solve for them?
  • Will the product be profitable when comparing production costs versus selling price?
  • What challenges might we face during production, marketing, or selling that need to be overcome?

When creating a POC, it helps to begin your work with a template.

Proof of concept templates on monday.com

Pasted image 0

You can use the monday.com proof of concept template to:

  • Develop a uniformed POC process within your organization:  Having a defined process for creating POCs can help upper management and other stakeholders make easier, more informed yes-or-no decisions on ideas. It also provides a transparent standard for success criteria for everyone involved in the ideation process.
  • Reduce error and missing information risks:  Clearly defined POC processes can help employees reduce error risks within their experiments and negate the possibilities of missing information that might skew the final results.
  • Thoroughly display your evidence of viability:  Our template has sections covering every part of discovering an idea’s feasibility, from a generalized overview to metrics, goals, constraints, and use cases. Using this template and filling it out in its entirety ensures your subsequent presentation will be thorough, professional, and unbiased.

You can use the proof of concept template inside monday.com’s Work OS to streamline your workflows at every stage of your idea’s journey, from inception and testing to marketing and beyond. Customizable dashboards  allow you to see all your most pertinent information on one screen, using the view you like best – whether that be Kanban boards  or Gantt charts . Optimized workflow scheduling allows you to easily assign tasks to your team members and track their progress towards meeting deadlines. Save time by automating routine tasks and approvals  to decrease time spent daily on tedious jobs. Plus, monday.com has numerous templates  besides the proof of concept that you can take advantage of.

Related templates on monday.com

Once you’ve got the green light on your idea, you can use related templates to flesh your products or processes out. Depending on the type of idea you developed in your POC, you might want to use our creative processes or product development templates to simplify your project moving forward.

Creative processes template

Our creative processes template  can help you plan and manage creative ideation, like those revolving around content or design. Multiple views, including calendar and Kanban view options, allow you to see your workflow the way you prefer. Use the customizable template to assign creative tasks to qualified team members, store your project’s most essential documents, and set deadlines, so you can efficiently meet each one at or ahead of schedule. In addition, you can enable reminders to be sent to you and other team members when a publishing date is approaching.

Product development template

Our product development template  allows you to plan and track your scrum iterations with ease, thus enabling faster to-market delivery of better products. Once you’ve got the green light on your product idea, you can flesh out your product business idea with this template and assign development, marketing, or production tasks to team members. Set deadlines and receive automatic notifications when they’re approaching to make staying on track for delivery easier. Plus, you can track where each task is in real time, address pain points, and communicate with other project managers as needed.

You likely have a working knowledge of POC templates by now and how they can help you prove the feasibility of your idea. However, we’ve answered a few FAQs in case you still have questions.

Frequently asked questions

What is a proof of concept.

A proof of concept (POC) provides evidence that a design concept or business proposal is feasible. Generally, a POC is derived from experiments, research, and pilot projects .

How do you make a POC presentation?

To make a POC presentation, you should demonstrate a need for the product, service, or project you’re presenting and show why your idea is the best solution. You might do this by creating and testing a prototype, gathering feedback, running surveys, and researching industry statistics. During your presentation, focus on your key details and leave room at the end for questions. You may find it helpful to use visual aids like bar graphs, circle diagrams, and slideshows during your presentation.

Prove your idea’s feasibility with a proof of concept template at monday.com

Every great product, service, and modern technology began as an untested idea that someone had to prove before bringing it to the public. You can use a successful POC template to demonstrate your newest idea’s feasibility and profitability to your company’s decision-makers, so you can make the next big thing happen. Using a template makes developing a POC simpler. Pairing that template with monday.com’s powerful Work OS can further optimize your efforts to test, design, manage, market, and complete your latest and greatest designs or ideas.

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The Leading Source of Insights On Business Model Strategy & Tech Business Models

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Proof of Concept And Why It Matters In Business

A proof of concept is a document that provides a visual representation of what your idea is and how it would work. It’s a tangible way to show off your idea to a potential collaborator, investor, or customer. Therefore, it shows how a pilot project might help a larger project scale if there is “proof” that the first concept worked out.

Table of Contents

What is a proof of concept and why is it so important in business?

In business , a proof of concept is critical to validate an idea. Therefore it helps achieve a better understanding of whether to undertake a larger project.

A proof of concept is different from a minimum viable product, which instead is the complete version of your product that is good enough to attract its potential audience and improve on that.

In simple terms, a proof of concept is a document that allows to get an idea funded, either by an investor, partner or perhaps to a potential customer.

The idea of the proof of concept is to simplify your project, at the point of creating a smaller, viable one, that can prove the viability of a larger project, with less risk, budget, and a more focused timeline.

In fact, in most cases, in business ideas fail because there is not enough interest from the market, or because the timing is wrong, or perhaps the team, funding and business model aren’t good enpough.

Thus, a proof of concept helps business people simplify a larger, and more ambitious project, into something that can be tested in a shorter time span and with less effort, in terms of budget and time.

startup-success

How to create a simple proof of concept

There isn’t a single way to create a proof of concept. It all starts by understanding what minimum viable option will prove the project successful and, therefore, it will help us scale the overall project.

Proof of Concept Vs. MVP

However, where a minimum viable product has the scope of defining whether there is a market for an idea, thus scoping that market and delivering a fully functional (yet minimal) product.

A proof of concept is more focused on understanding whether that is a good idea in the first place.

Instead, an MVP flips the logic upside down, and it asks, “how can we kick off a valuable, iterative, feedback loop, with customers, to make a product valuable, over time?”

minimum-viable-product

In short, with an MVP, even if you launch a product, and it fails, it’s fine, as long as it fails fast.

Yet, to ensure you can kick off valuable feedback loops, you have to target a very narrow niche, or what’s known in buzzy terms a minimum viable audience .

minimum-viable-audience

A minimum viable audience will help you find the way toward a successful product, even though that might not be successful as of now.

Therefore, it starts by narrowing down what’s the fastest and simplest way to prove whether the idea is feasible in the first place.

Proof of Concept Vs. Prototype

prototyping

A prototype addresses the feasibility of the idea.

Whereas a proof of concept tries to address whether the idea is a good one in the first place.

Both, though, are too risky.

Indeed, the prototype is risky because it addresses the market question (will people want it?) too far down the road, potentially making the project’s costs too high and failure too expensive.

The proof of concept, on the other side, tries to address whether the idea is a good one, but without testing the market in the first place.

In short, it relies on theoretical assumptions, which are also too risky, as we might embark on a road that is too risky to undertake.

So what’s a middle ground?

Proof of Concept vs. Pretotype

pretotyping

A great way to test is through pretotyping .

Coined by Alberto Savoia, which I interviewed on the blog , pretotyping is about “finding the right it” by addressing the market risk (will people want it?) with an approach that reduces the assumptions of the market.

In other words, before embarking on an expensive and risky project, we want to understand if people will want to use that if we were to create that product.

How do we do it? According to pretotype we fake to build a viable prototype and test it as if it was the real product.

As Alberto Savoia explained to me:

Many many years ago IBM thought “we want everyone to have personal computers,” but there was no way (think about this is like 1980) that most people are going to learn how to use a keyboard.

In those days who used a keyboard? Secretaries, programmers, and writers. So they thought, we need people to be able to operate the computer without using the keyboard, just by using speech to text into a microphone.

Of course, they could not build the technology, they could not build the prototype for years because the technology was not there, computers were not fast enough.

But they thought, okay, maybe we want to make this investment, how do we actually make sure that people will want to use a microphone exclusively to interact with a computer?

So they did a very clever thing, they brought people in the room, they gave them a microphone, and there was a screen in front of that microphone and told them,

“Look, this a new way of running a computer, there’s no keyboard, you just speak to it, and give it a shot and tell us what you  think .”

And the interesting thing, this is when I came up with the name pretotyping, originally I called it a pretendotype, because I thought, they haven’t built something that actually works, they’re pretending to have a prototype, so let’s go with pretendotype. Then I shortened the name to pretotype.

With this simple trick, the IBM team found out that even if they were going to build it, they assumed that most people would not use a keyboard, and this proved utterly wrong.

Yet they didn’t embark on a multi-billion dollar project to figure this out, as they realized that the speech-to-text was not fit for a work environment, as there were too many issues that they had not thought about in the prototyping stage!

Key Highlights

  • A Proof of Concept is a document or tangible representation that illustrates the feasibility and potential of an idea, product, or project.
  • It provides a way to demonstrate the viability of an idea to potential collaborators, investors, or customers.
  • PoC aims to simplify a larger project into a smaller, manageable version that showcases its core functionality and value .
  • PoC plays a crucial role in securing funding or partnership for an idea.
  • By presenting a working model of the idea, businesses can reduce risk, budget, and time associated with larger-scale projects.
  • It serves as a means to validate market interest, test assumptions, and refine concepts before committing extensive resources.
  • Identifying the minimal viable version that demonstrates the project’s key aspects.
  • Focusing on core functionalities to prove feasibility.
  • Streamlining the concept to be tested within a shorter timeframe and budget.
  • A Minimum Viable Product (MVP) focuses on delivering a functional but minimal version of a product to assess market demand and gather feedback.
  • PoC aims to demonstrate the potential of an idea or concept, even before building a complete product.
  • MVP emphasizes iterative development based on user feedback, while PoC seeks to establish the idea’s viability first.
  • MVA identifies the smallest subset of a market that can sustain a business during its initial stages.
  • It helps businesses target a specific niche with unmet needs, guiding them towards building a successful product.
  • A Prototype is a sample version used to test and validate specific design or process concepts.
  • A PoC, while similar in testing, focuses on whether the idea itself is worth pursuing.
  • Pretotyping combines “pretend” and “prototype” and aims to validate ideas with minimal investment.
  • It involves creating a mock version of a product and testing it with potential users to gauge interest before investing heavily in development.
  • IBM used pretotyping to test the idea of users interacting with computers through speech-to-text technology.
  • Rather than building an actual product, they brought users into a room, gave them a microphone, and gauged their reactions.
  • This approach revealed user discomfort with the concept, preventing a potentially expensive project from proceeding.

Connected Agile Frameworks

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Continuous Innovation

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Design Sprint

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Design Thinking

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Dual Track Agile

dual-track-agile

Feature-Driven Development

feature-driven-development

eXtreme Programming

extreme-programming

Lean vs. Agile

lean-methodology-vs-agile

Lean Startup

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Rapid Application Development

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Scaled Agile

scaled-agile-lean-development

Spotify Model

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Read Also: Business Models Guide , Sumo Logic Business Model , Snowflake

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Read Next:  SWOT Analysis ,  Personal SWOT Analysis ,  TOWS Matrix ,  PESTEL

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Exploring the Benefits of Proof of Concept for Marketers

Learn what proof of concept is and how it can be used to improve your marketing strategy.

Before you can turn a business idea into a reality, you need to make sure that your idea is actually feasible. It's crucial to ensure potential investors see that your idea is worth pursuing, and one way you can test the feasibility of a product idea is with proof of concept.

So, what does proof of concept mean?

Proof of concept is the act of taking a business idea, turning it into a real product or service, and testing the product to determine if it can work in the real world. Proof of concept can be applied to just about any business model or concept that needs to be proven before it goes into production.

It can be used for business development to help a company grow with a foundational business plan, gives project managers a framework to develop a product idea, and aids in software development to bring new technology to the market. You can also use proof of concept to create a solid marketing plan that maximizes sales and profits.

Proof of concept can be used in many industries, but it's especially beneficial for marketers. In this article, we'll discuss the proof of concept meaning, how to implement proof of concept in marketing, and more. Continue reading to learn more about how proof of concept can improve your marketing strategy.

What is proof of concept in marketing?

So, what is proof of concept in the business and marketing world?

The goal of proof of concept in marketing is to take an idea and turn it into a viable product, final design, or marketing plan. Any business idea needs to undergo a proof of concept development process to make sure it works as intended.

But first, you need to create a minimum viable product that meets the basic parameters of the concept you're seeking to sell. From there, the product development process builds upon the successful proof of concept to make it better and find areas for further testing and expansion before coming up with a final product.

With proof of concept in marketing, the goal is to develop a marketing strategy that's successful, repeatable, and applicable to similar products.

One proof of concept example is coming up with a marketing idea for a product or service that can attract current customers as well as bring in new ones. In order to get the attention of your target audience , you need to lay out your plan and test different variations to determine which one is the most successful.

From there, you can identify your target audience, their demographics, and their consumer profiles. These are the people you want to buy your product or service.

The concept is your Point A and your target audience is your Point B. Now you have to figure out which concept is going to be the most effective to get from Point A to Point B.

The development process begins by taking the most viable product marketing ideas and testing them as the proof of concept is developed. It's normal to test multiple ideas at the same time while positioning them for different markets in order to find out which of the ideas works the best.

Once you've managed to get successful proof that the marketing idea is viable, tests well with the target audience, and shows promise in terms of expected sales numbers, you can release the final marketing plan to a wider audience.

Benefits of proof of concept for marketers

Proof of concept can help you find the best way to market a product with less effort and lower costs. It's much easier to identify problems in the early stages before they go live and makes your messaging more effective as a result.

A good example is getting the bugs out of the program during the software development process in order to have software that works right from the moment it's finished You're essentially doing the same for your marketing plan by working out the issues before the product or service goes live and the associated advertising efforts along with it.

Proof of concept can help marketers in many ways, including:

Identify potential flaws and issues

Proof of concept helps marketers identify flaws and issues before they become major problems. The problems show up during the planning stages and give you the opportunity to fix them long before going live with the marketing plan.

Reduce development costs and risks

With proof of concept, less time and resources are spent chasing down the "what ifs" during the development phase of the plan because it's easier to prove the viability and feasibility of the product or service.

That translates into less money spent and eliminates "scope creep", which can happen when the development process gets out of control.

Understand customer needs and preferences

Focus groups can help you learn more information about what your customers are looking for in their customer journey. Proof of concept can improve your customer experience by helping you better understand customer needs and preferences and creating a marketing strategy that appeals to them.

Improve product or service quality

The feedback you receive from focus groups and other sources of input helps you improve the quality of the service or product you're looking to sell. It also generates brand trust because the customer base knows you're listening to their opinions and desires for product or service improvements.

Enhance marketability

One of the benefits of the proof of concept process is learning more about your product or service as it relates to the market. You may think you know everything there is to know about your product, but getting feedback and finding out who buys your product opens up new marketing avenues and the opportunity to appeal to a wider range of customers.

Increase sales and revenue

The information you collect from studying how your ideal customer reacts to your marketing efforts shows you how best to position what you're selling. When you have awareness and insight into how well your concept might sell, you can expand your efforts to reach more of your intended audience.

Build customer trust and loyalty

By using proof of concept, the product or service you're marketing has been thoroughly vetted for soundness and viability. The customer knows they can trust your brand because your marketing efforts helped them buy something that worked as intended and without problems.

Delivering a sound marketing strategy and product to the market helps build customer relationships and improve brand loyalty.

How to implement proof of concept in marketing

The proof of concept framework is easily adapted to creating a viable marketing campaign.

You create your workflow by following a series of established steps and applying your problems to each step, then figuring out how to overcome the problem, apply a solution, or act on the step.

Implementing proof of concept in your marketing campaigns is relatively easy and requires you to follow a few simple steps, such as:

Identify your objectives

Identifying your objectives, or setting your goals for the product, helps you create a measurement for product success. Using SMART goals lets you break down your objectives into a guideline that helps you move the proof of concept forward.

Define your target market

You need to know who is most likely to buy your product or service before you can actually create it. This will save you money on your final marketing efforts and help you refine your plan to create a marketing campaign that appeals to your desired demographic and customer profile.

Develop and test your prototype

The product or service you're looking to market may not be ready to launch, but it is in a state where it's considered a minimum viable product. That means you can take the product or service to the public for testing to determine how the target market reacts to it and determine what works and doesn't for the consumer.

Collect feedback

Getting user feedback from your focus groups and surveys helps you understand how well your marketing efforts will work. Always be sure to solicit honest feedback, as brutally honest information shows you where things are going right and where they need improving.

Analyze the results

The data collected throughout the development process tells you how your ideal customer reacts to your product or service.

By looking at your marketing materials, you can see how much time a customer spends looking at and considering your product before they buy it. It also shows where the marketing is lacking or goes too far in one direction, and where changes need to be made before going live.

Implement your product or service

Once you've completed the proof of concept development process, it's time to implement your product or service and watch your efforts turn into real-time sales.

Your hard work and planning gave you a good idea of how well your product or service will sell, enabling you to sit back and guide your team through the marketing rollout with the least amount of stress.

Leverage proof of concept in your marketing strategy

Planning is a normal part of any marketing strategy, but proof of concept takes it to another level. It removes the guesswork from your ideas and concepts and saves you time and energy figuring out how to position your product for the right audience.

You also save money on the development process and increase your profitability. Last, but not least, using proof of concept for your marketing processes helps you reach more customers who are likely to buy the product or service, expanding your brand’s reach.

At Mailchimp, we can help you learn more about how to market your business , how to identify your ideal customer, and how to use analytics that shows you how well your marketing efforts are working.

We feature a robust content library covering everything from how to start your business to finding your target audience, so you can grow your business into something you can be proud of.

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  • Business Plans

How to Write a Business Plan "Concept and Value Proposition" Section

A key component of your business plan is your business concept and value proposition, which is the clear articulation of why customers should choose your solution over that of your competitors.

This section of the plan for developing your business concept and positioning your value proposition follows the executive summary and company history , so readers should already have a general idea of what your company does, who it's for, and what your long-term goals are for the business.

The business concept comprises your vision of the company, explaining the value your product or service will bring to the customer, why you are especially qualified to offer it, as well describing your offering's uniqueness and growth potential  within your industry.

This section enables you, as well as interested parties and potential investors, to research and analyze the concept for feasibility, both from a market and financial perspective. Keep in mind that everything in your business plan must relate back to the value and benefits your product or service provides to your target customers.

The Feasibility Test

Think of a feasibility test as a reality check for your business idea. The goal of conducting a feasibility test is to prove to yourself and your team or investors the probability of your product or service being successful within your industry.

A feasibility test should be as low-cost as possible and should revolve around creating a Minimum Viable Product (MVP) or simple proof of concept, which communicates the most simple, basic value propositions of your future product or service.

According to Entrepreneurship For Dummies, by Kathleen Allen, a feasibility test weighs the validity of your business concept by examining four main points:

  • The product your firm will offer.
  • The customer you will target.
  • Your value proposition.
  • How you will get the product to its intended users.

By this stage in your business plan, you should have a firm grasp on what product or service you intend to offer, as well as who you believe will be your primary customer. The final item requires weighing various distribution channels, but, again, should be answerable with a little legwork.

The Value Proposition

Your value proposition is what makes customers choose you instead of the competition. It's part marketing, part operations, and part strategy; your value proposition is the foundation of your competitive advantage.

On a subconscious level, customers will compare the value proposition of your company against those of your competitors when deciding where to take their business. With that in mind, here are a few things to remember when writing your value proposition:

  • Keep it short and uncluttered. Your value proposition explains why customers should buy from you. If you can't sum it up in 10 words or less, chances are you won't be able to execute it, either.
  • Be precise. Your customers have specific needs; your value proposition should offer targeted solutions
  • It is about your customer, not you. Your value proposition should discuss only what matters to your customers and the value you can bring to them.
  • Value comes in numerous forms. Money, time, convenience and superior service are a few of the ways you can help deliver value to your customers.

Distribution Strategy

After you've validated your business idea with a small group of paying customers, the last part of the business concept is to determine how you will deliver your product to your customers at scale. Taking a manual approach to reaching your first customers is necessary, but won't work as you grow your business. Are you going to sell directly to consumers? Through strategic partnerships? Retail distributors?

Consider these several factors when planning the distribution strategy for your business:

  • Will you set up a brick-and-mortar shop or office, sell online, or both?
  • What unique obstacles exist for your company in these two different channels?
  • If your company sells a product, will you have the space to keep enough inventory on hand, or will customers have to agree to waiting periods?
  • Can you strike exclusive deals with any particular distributor or retailer? Do your competitors have any such deals that hinder your operation?

Vision is important if your business is going to grow. The more focus your business concept has in terms of clear solutions for a like-minded niche group of people, the greater the likelihood that you'll attract the best investors and customers.

Applebee's and IHOP are launching co-branded locations with both chains under one roof

Restaurant Chains Applebee's And IHOP To Close Over 100 Stores

Two of America’s iconic chain eateries are set to combine forces — literally.

The parent company of IHOP and Applebee’s has announced it has begun opening dual-branded locations, combining back-of-the house cooking areas and blending front-of-the-house dining areas, though with discrete entrances.

On parent Dine Brands Global’s most recent earnings call, CEO John Peyton said the company had already rolled out eight prototypes of the concept at select international locations, the most recent one opening in León, Mexico, about four hours northwest of Mexico City.

The idea is to reduce costs while maximizing revenues by attracting customers dining at different parts of the day to the same location, Peyton said.

“At breakfast, when there are more IHOP customers, customers can be seated in the Applebee’s area and vice versa at dinner,” Peyton told Nation's Restaurant News in a follow-up interview.

Peyton said the plan would be to “eventually” bring the concept of the U.S., without specifying a timetable.

Dine Brands, which also owns Fuzzy’s Taco Shop, has faced challenges in recent years amid changing tastes and rising cost pressures. It has closed hundreds of Applebee's locations since 2017, including 46 in 2023. Peyton also noted on the earnings call that customers continued to pull back on their spending last year.

Still, Dine Brands plans to open 25 new restaurants with Applebee’s largest operator, Flynn Restaurant Group. These will feature a more modern, streamlined restaurant that will include features like robotic beer dispensers.

As for IHOP, Peyton sees the brand as a market leader with a track record of growth, noting that 46 new U.S. locations opened last year.

business plan proof of concept

Rob Wile is a breaking business news reporter for NBC News Digital.

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COMMENTS

  1. What Is Proof of Concept (POC)? Definition, Steps & Best Practices

    Proof of concept is evidence obtained from a pilot project, which is executed to demonstrate that a product idea, business plan, or project plan is feasible. For example, in drug development, clinical trials are used to determine whether a new drug will be safe and effective, thus gathering proof of concept for a final product. The results of a ...

  2. How to write a proof of concept [+ template]

    A proof of concept (POC) is the process of proving that an idea is feasible. It's a screening phase to decide whether the idea can and should be brought to life. A POC may very well reveal that a great-on-paper proposal doesn't have legs to stand on, in which case it should be revised or trashed. It's similar to a painted door test, which can ...

  3. What Is Proof of Concept? A Comprehensive Guide to POC

    A Proof of concept (POC) is the process of gathering evidence to support the feasibility of a project. Project managers perform a POC in the early stages of development before committing too much time and resources to a project. The purpose of a proof of concept is to demonstrate project viability to product teams, clients, and other stakeholders.

  4. What is proof of concept (POC)? Writing guide with examples

    Free business plan template Proof of concept in project management. A proof of concept is often used to evaluate the effectiveness of project management tools and methodologies. For instance, an editorial team may apply a new software or brainstorming technique to a smaller-scale project.

  5. The Ultimate Guide to Writing a Proof of Concept (POC)

    Writing a proof of concept involves several steps to ensure its effectiveness. Follow these steps to guide you through the process: 1. Define the POC Idea. The first step in creating a proof of concept is to clearly define the idea. Identify the objectives and goals you want to achieve with the POC.

  6. Proof of Concept (POC): What is it & How to Write?

    Either way, when planning and executing a proof of concept, follow these steps to get started creating an effective POC process! 1. Identify the Problem or Opportunity. The first step in planning a proof of concept is identifying what it is that you want to try or test. Build the beginnings of a project plan, including scope, schedule, and cost ...

  7. A Step-By-Step Guide to Writing a Proof of Concept

    A proof of concept is a demonstration of how a particular business idea works. You can use a proof of concept to show the feasibility of a product, service, business plan, or work process. Unlike a prototype, which is a working model of the proposed product, a proof of concept is a theoretical demonstration of the idea's potential production ...

  8. What is a proof of concept: Definition, examples, and template

    6 steps to writing a proof of concept. A successful proof of concept should always have the following elements: clear goals, defined metrics, realistic assumptions, and an appropriate scope. And before going through the steps of developing (ideation, defining requirements, building a prototype, testing, and validation), you first have to write ...

  9. Proof of Concept Templates to Transform Your Vision into Action

    A Proof of Concept template is a structured document that outlines the purpose, objectives, scope, methodology, timeline, budget, success criteria, risk assessment, and data analysis plan for testing the feasibility of a concept or idea. Using a POC template, you can plan, execute, and evaluate the Proof of Concept, making sure the viability ...

  10. What's a Proof of Concept (POC)? A Complete 6-Step Guide

    Here are the main steps for writing a POC: 1. Identify the problem you are aiming to solve. Bring together key team members, including stakeholders, to identify the problem you want to solve. Identifying the problem often begins with market research to determine your target audience's habits, needs, and desires.

  11. What is Proof of Concept & How Do You Do It Right?

    Proof of concept (POC) is a test conducted to validate that a product or idea is feasible to take to the commercialization stage. For many companies, especially those that focus on one or two products, a proof of concept can be an essential component of early stage planning of building a business. Proof of concept is a key step before actually ...

  12. 12 Expert Tips For Developing A Successful Proof Of Concept

    1. Stick to the essentials. Choose your scope wisely, keeping only those items that are essential to demonstrate the value of investment beyond the proof of concept. Additionally, focus on the ...

  13. How to create a proof of concept with 6 free templates

    A proof of concept consists of the following six fundamental steps: Define the idea and what it is trying to achieve, including objectives, scope and necessary resources. Identify and organize the team involved in the decision-making and production development process as well as any stakeholders.

  14. What Is Proof of Concept (POC): Definition & Examples

    Tags: Project Management. Proof of concept (POC) is a method that enables a project management team or other professionals to determine, demonstrate, and validate the feasibility or viability of an idea, product, concept, solution, or hypothesis. It is a crucial and essential step taken by researchers and businesses to evaluate the practicality ...

  15. Proof of Concept: When you Need a POC for your Business

    Proof of concept is generally a document that explains and confirms the practical feasibility of your idea. The main goal of documenting a POC business idea is to show that it will work in a real-life environment, specify technologies and confirm that your target audience will demand your future solution. This document is theoretical and mostly ...

  16. What is a proof of concept (POC)?

    Developing a proof-of-concept plan could address how a proposed product or service will support organizational goals or other business requirements. Proof of concept vs. prototype Although the terms proof of concept and prototype are sometimes used interchangeably, they are processes meant to produce different results and serve different purposes.

  17. Free proof of concept template to help prove idea viability

    A proof of concept (POC) is a document providing evidence that an idea you had was viable and that there's a need for it. You can apply a proof of concept template to software and product development, a business idea, and more. Organizations often use this approach to determine the feasibility and profitability of concepts before moving ...

  18. How To Create a Proof of Concept (With Benefits and Steps)

    By setting targets that satisfy both needs, you create an achievable target for your concept. Related: How To Set Business Goals With Examples 5. Build a proof of concept plan A proof-of-concept plan is a document that outlines your proposal for executing a proof of concept. It includes all the important information that decision-makers require ...

  19. Proof of Concept And Why It Matters In Business

    A proof of concept is a document that provides a visual representation of what your idea is and how it would work. It's a tangible way to show off your idea to a potential collaborator, investor, or customer. Therefore, it shows how a pilot project might help a larger project scale if there is "proof" that the first concept worked out ...

  20. Exploring the Benefits of Proof of Concept for Marketers

    Proof of concept can be applied to just about any business model or concept that needs to be proven before it goes into production. It can be used for business development to help a company grow with a foundational business plan, gives project managers a framework to develop a product idea, and aids in software development to bring new ...

  21. PDF Understanding the Proof of Business Concept

    A proof of business concept, also known as a feasibility study, is normally less than 20% of the cost of a business plan and although a feasibility study will not be anywhere close to the in-depth "nuts and bolts" view of a business plan, it will do exactly what the name implies.

  22. Writing a Business Plan "Concept and Value Proposition"

    A key component of your business plan is your business concept and value proposition, which is the clear articulation of why customers should choose your solution over that of your competitors. This section of the plan for developing your business concept and positioning your value proposition follows the executive summary and company history ...

  23. Top 30 Small Business Marketing Tips for 2024

    Leverage Social Media Platforms. Social media marketing can make your small business more visible on platforms like Facebook, Instagram, TikTok, and LinkedIn. By marketing your small business on social media, you have the potential to reach 5.04 billion people, including your ideal customer.

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  26. Applebee's and IHOP are launching co-branded locations with both chains

    The parent company of IHOP and Applebee's has announced it has begun opening dual-branded locations, combining back-of-the house cooking areas and blending front-of-the-house dining areas, though ...