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  • The Workstream
  • Project management
  • Proof of concept

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

Browse topics.

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 ...

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

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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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

Based in sunny San Diego, Luke is a digital marketer with 3+ years of experience developing and executing content strategy for eCommerce startups and SaaS enterprises alike—Airtable, Zoom, and yes, Zapier—to name a few. When he isn’t diving into a keyword research rabbit hole, you can find him at a music festival, thrifting, or spending time with his friends and family.

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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:

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

business plan proof of concept

Launching a new product or service may take a giant leap of faith, but a proof of concept (POC) can help you determine whether you can nail the landing before you jump. Intended for use during the initial stages of project development, a POC will test the viability of your idea and determine what you need to put it into action.

In this article, you’ll learn what to include in a proof of concept and why you should implement one at the early stages of product development. Whether you’re inventing educational software or developing an innovative new food service, a proof of concept will give you the insight you need to determine if your idea stands a chance of success.

Don’t miss more quality content!

What is 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 and use.

Companies often produce a proof of concept before pitching their ideas to investors. Employees or team leaders within a company might also develop proof of concept documentation to present a new product idea to management. Additionally, project managers  can use POC documents as a framework for determining the final product development process.

What should be included in a proof of concept?

A proof of concept should include an explanation of what the proposed product, service, or process does and how it is expected to work. Typically, a proof of concept is a document or presentation that introduces the audience to the idea, defines the target market, and gives an overview of the steps required to create the real-life version. Your final POC document should answer the following questions:

  • Can you reliably produce the product or service in a real-world setting?
  • What is the existing or potential market for this product or service?
  • Does the proposed idea work as predicted?
  • What technologies are necessary to smoothly run this project and produce the intended results?
  • Is there feedback received during the POC process that you can incorporate into the final project?

Presenting a proof of concept to your project management team

If you’ve developed a proof of concept for a new product or process, presenting your idea to the project management team is the next step before implementation. You might prepare a document with visuals and illustrations or a physical working model of the proposed concept to give project managers a clear view of how the idea might work in practice.

Project managers want to know the likelihood of a business idea’s success before putting it into practice. A proof of concept document or presentation gives your management team the confidence to forge ahead and dedicate company resources toward product development.

The benefits of developing a proof of concept in a project’s early stages

During the earliest stages of a project, a proof of concept can help you decide what ideas are worth pursuing and identify any potential roadblocks before the development process has begun. Specific benefits of developing a proof of concept include:

  • Validation of the core concept:  At its core, the proof of concept shows whether developing your idea is feasible. Discovering fatal flaws in the production process at this stage helps you choose which projects to pursue further and which to drop in favor of other ideas.
  • Cost predictions:  Completing a proof of concept will give you a clear idea of the final project’s overall costs. You might uncover hidden costs during this process or find new ways to save money once the main project is underway.
  • Verification of the predicted outcomes:  The proof of concept shows you what to expect from the completed project. You may discover new uses or additional markets for your product or service during the proof of concept stage.
  • Identification of risks:  The POC process helps you spot risks or potential obstacles before you launch a product or service, so you can find ways to mitigate problems before they develop.
  • Early feedback:  A proof of concept gives you a chance to get feedback before the full project is in motion. This lets you make any necessary modifications before you fully invest in the idea.
  • Showcase feasibility to investors:  A POC that shows your proposed project has a high likelihood of a successful outcome can spur investors to approve the project.

Proof of concept examples

Proof of concept in software development.

A company creating computer software or mobile apps may develop a proof of concept based around identifying a need in the market and proposing a new program to address that need. The POC would include an assessment of the time needed to build the program and whether current technology supports the goals of the software.

Proof of concept in pharmaceutical development

Pharmaceutical companies use proof of concept to assess whether new drugs meet efficacy requirements and can be produced in a way that generates profit for the manufacturer.

Proof of concept for a new food product

A proof of concept for a new type of snack food might begin with consumer surveys gauging interest in the flavor and style of the proposed snack. During the proof of concept process, team members would also research sourcing for ingredients, packaging, and production equipment to ensure the snack’s profitability.

Comparing proof of concept to MVP and prototype

Two other aspects of business development related to proof of concept are prototypes and minimum viable products (MVP). Important differences exist between these three things, though. The proof of concept is about ideas, so the point is to determine whether the proposal is likely to work as expected.

A prototype is a physical model of the product, which helps prove that it can be produced as described. A prototype may be part of the POC process as a way to present a working model to stakeholders. The MVP is the first fully working version of your product. It should be mostly polished, but early adopters may discover areas for improvement before it hits the mass market. In general, the POC shows that the product is viable, the prototype shows that production is practical, and the MVP queries the market so initial users can identify any issues missed during the prior stages of development.

Ensure your proof of concept is transparent and collaborative with monday.com

Developing a proof of concept project involves multiple steps — monday.com can help you manage your project from start to finish. Our customizable Project Management Templates  let you visualize all stages of your project and loop in other team members so everyone can contribute their ideas and suggestions. For added transparency, Project Trackers  highlight each step in the process.

Frequently asked questions

What does poc stand for.

POC stands for “proof of concept.”

How do you show proof of concept?

To show proof of concept, you create a demonstration or document that describes how you can produce and sell the product or service you have proposed.

What is the purpose of a POC?

The purpose of a POC is to prove that a proposed or planned business concept is viable before you commit to spending money and time on its implementation.

Developing an effective proof of concept process

A proof of concept sets the tone for your entire project by showing that your idea is workable and has a strong chance of success. Robust project management software can help take your idea from conception to final product. monday.com offers more than 1,000 templates to help with every stage of your project.

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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.

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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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28 Agile Templates to Streamline Your Agile Projects and Processes

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.

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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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business plan proof of concept

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

Harvard Business Review estimates that over 66% of businesses fail to give investors their money back. What factors account for the high failure rate?

To get their solutions up and running as fast as possible, businesses frequently go right into product development without getting proof of the business idea’s feasibility. It’s a hazardous approach that might go wrong.

Proof of concept (PoC) is required before investing into project development. It is a strategy that helps businesses make educated decisions about creating new products—the chance of crafting a solution people like using increases if developers perform this preliminary analysis.

IntelliSoft has been in software development for decades, so that we go through every stage of project development with our customers, from the idea to the release of a complete product. We know how to develop a proof of concept for various areas such as fintech, logistics, the Internet of Things, healthcare, etc.

Table of Contents

What Is a Proof of Concept in Software Development?

What is PoC? Proof-of-concept is a general term for providing logical proof that a concept works. Theoretically, a good Future Reality Tree (FRT) can provide such evidence, but it may not be good enough to eliminate all worries.

Creating a PoC for your new software product

PoC meaning sounds this way: the objective is to learn whether or not your software development proposal is feasible and, if so, what technologies will be most useful to make the product successful. In software development, the key benefits of proof of concept are:

  • Helps you save time and money by identifying which concepts don’t work.
  • Assists you with gaining a competitive advantage because proof of concept assures you that you can implement the idea.
  • Allows you to choose the right technology from the beginning.

Proof of Concept’s Worth

The proof of concept is the initial stage at which a business may determine whether or not an idea is viable. Prior to devoting a substantial amount of time and resources to trying out irrational conjecture, this strategy enables businesses to assess the feasibility of new ideas.

The development of a proof of concept (POC) can assist a product owner in identifying possible problems, both technically and logistically, that could impede success. A proof of concept in software development would demonstrate technical feasibility. POCs can prove startup financial feasibility. An organization wouldn’t waste time or money on a POC that doesn’t satisfy quality criteria.

When You May Require a Proof of Concept

Testing new technology thoroughly is essential to guarantee it won’t disrupt your current operations. The proof of concept lets you determine if it works correctly and is compatible with your current setup. Moreover, it will alert you to any problems that need fixing before the project release.

Suppose you’re already adding new features to a product, service, or technology. A PoC is needed to see if the proposed new features are possible, if they work, and might be worth it. It’s about lowering risk and ensuring you avoid investing on things that won’t work out:

  • Launching a start-up Before spending a ton of time and money developing anything, it’s wise to conduct a Proof of Concept to see if it’s technically feasible and if people would find it valuable.
  • Enhancing a current product, service, or technology by introducing new functions A Proof of Concept must be conducted to ensure that the suggested new features are both practical and valuable. The goal is to minimize losses and avoid pouring money into projects that are certain to fail.
  • Introducing innovative technologies The PoC determines compatibility and performance. It must function with your present systems and operations without causing issues. It will also alert you to any difficulties before you deploy it.

PoC in Software Development VS MVP VS Prototype

People often confuse proof of concept in software PoC development and minimum viable product (MVP). Let’s see the difference to clarify things once and for all.

  • PoC Proof of concept (POC) is data acquired from a pilot project that is carried out to show the viability of a project plan, business strategy, or product proposal. Clinical trials, for instance, are performed to acquire proof of concept for a finished product in the drug development industry. Nevertheless, a proof of concept accomplishes more than that.
  • MVP The term “minimum viable product” (MVP) comes from the book “The Lean Startup,” which places an emphasis on the role that learning plays in the creation of new products. The term “minimum viable product,” or “MVP,” was coined by Eric Ries, who described it as “that version of a new product that allows a team to collect the most amount of verified learning about consumers with the least amount of work.”
  • Prototype You can evaluate the “form” of your concept with the help of a mobile app prototype (e.g., look, flow, or user interaction). Prototyping helps you bridge your concept and knowledge gaps and uncover all demands and specifications. User testing and feedback can help you develop your product concept using this time- and cost-saving option.

Showcase your product design via prototyping. It also illustrates the system’s complicated algorithms and operations.

The benefits of creating a PoC in software development

The Benefits of Creating a PoC in Software Development

  • Possessing a reason-to-believe It takes more than excitement to persuade potential investors that your idea is credible and worth their money. The proof of concept details the rationale and implementation of your brilliant idea. Such evidence may convince even the most doubtful investors and provide you additional negotiation power with other parties.
  • Realizing product restrictions In the realm of software development, the creation of a proof of concept will be of great assistance to owners in gaining knowledge of the limitations, benefits, and downsides of their product concept. Throughout the procedure, stakeholders can acquire knowledge regarding the many options and decide the most suitable way to build software.
  • Former verification of market requirements The first step in developing a Proof of Concept is to define the issues and challenges to address with the software. The objective is to ensure the product is grounded in reality and value to its intended audience. You’ll know if you’re on the right track thanks to the testing phase.
  • Planning a budget In software development, making a proof of concept will help stakeholders understand the limits, benefits, and problems of their product idea. During the process, they will learn about the many options and be able to choose the best way to make software.
  • Evaluating tech feasibility A proof of concept serves the objective of determining whether the software idea is technically possible. The development team evaluates what is feasible and impractical and chooses the best technical path for product development to include in a PoC project.
  • Accelerating the release You create a strategy for implementing your novel idea by producing a proof of concept. The procedure lets you check that you have chosen the appropriate workflow and make any required adjustments. By picking the proper path early on, you may learn about the dangers and allow yourself to get ready to reduce them. You can avoid surprises at later stages of the process.

How to Develop a Proof of Concept?

IntelliSoft has gathered the most essential steps of PoC development below so that you can get a clear idea of the scope of the work.

Step 1: Prove the Demand

Ensure your POC is project-related. If your project is unrelated, a proof of concept is pointless. If a POC helps you meet project goals, it’s relevant. If not, don’t use it. You should know precisely what problems your users are having before you start designing the program. Talk to a group cross-section rather than making assumptions or presuming you understand the issues.

It’s not necessary to interview hundreds of people at this stage; just enough that you can identify recurring themes in people’s worries. Ask about each problem’s repercussions when you interview potential consumers and stakeholders.

Remember that you are not writing a POC for developers but for investors. The primary purpose of the proof of concept is to assess the feasibility and describe the technical details. But the document must be understandable to someone who knows nothing about development. Describe the technical information without unnecessary details. Consider the example of a neural network composer for background music.

Step 2: Detect Pain Points and Obtain Feedback

You must consider potential solutions to each problem highlighted in the previous step. More than one solution may exist for each problem. You need it to:

  • Identify the problem
  • Show that your product will solve it

One way to collect data is through in-depth interviews with potential customers. For our example, you could gather a focus group of people who listen to background music while working or studying and ask them questions:

Proof of concept examples

Interview up to ten people individually. As this is a qualitative study, a large data set is unnecessary. Yet, confounders, or variables that bias data and lead to erroneous conclusions, may cause you to falter in selecting respondents.

After completing your brainstorming session, you will analyze each potential solution to assess how it fares in cost, competition, timeframe, technological obstacles, and so on. When you’ve finished going through this process, you should have a better notion of which solutions to include in the product that you’re creating.

When you have compiled this list of options, you should revisit the users and stakeholders first interviewed to get information regarding their reactions and answers to the solutions offered.

Step 3: Prototype Your Solution and Examine

The next stage is to build a prototype that incorporates your suggestions into an essential product that you can test with the people you previously interviewed. This prototype’s UI/UX and feature set should be as anticipated.

After finishing the prototype, test it with the interviewers to get further input. Take notes as they use the product to monitor the UI’s user-friendly and determine whether you missed any crucial features.

You will determine whether or not your idea is ready to be put into production and whether or not it was successful. Completing this procedure should result in a user-friendly, simple, and helpful product since this was the intended outcome. You will want to ensure developers are familiar with its operation to get work done swiftly and efficiently without stumbling into any problems.

Step 4: Develop a Minimum Viable Product

The Minimum Viable Product (MVP) is the earliest version of a product with only the necessary features, enough to deliver the underlying values to the audience and test them on the first users.

The key to an MVP is that the company produces an actual product, which it then delivers to the marketplace. This product can be a one-page website. Developers observe the behavior of people using the service for the first time. Based on the information gained from the experiment, the team continues, adjusts, or cancels work on the product.

Step 5: Craft a Roadmap

Create a road map using all the information you’ve acquired in the preceding phases. This road map should explain what you’ve learned and give an overview of the recommended step-by-step procedure for constructing the product. Your project manager will be grateful to you for doing this. Consider this route as a collection of architectural plans that will be used to construct a structure. Everyone involved in developing the product will remain on the same page thanks to this roadmap as a guide, and they will have a crystal clear idea of the ultimate objective.

Tools to Use When Creating Your PoC

Project managers’ planning for the typical software development process is quite similar to the proof of concept development.

Creating a proof of concept - key steps

Below we listed the most popular task managers. Pick the one that most appeals to you:

  • Miro . A fantastic whiteboarding tool, Miro is fundamentally simple to use and navigate. Additionally, exploring the tool is enjoyable. When working with folks who aren’t from design teams, it’s excellent because it’s really welcoming in the sense that it doesn’t frighten new users (as platforms like Adobe or Figma may). Miro offers a free and premium plan starting at $10 per user per month (or $8 per user per month for annual billing).
  • Asana . Asana is a solid, user-friendly project management application that will satisfy the requirements of the majority of users. While not quite as potent as some competitors, the software’s user interface is a major selling point for novices. Read this comprehensive Asana review to learn more. Asana Premium costs $10.99 per user per month when billed annually and $13.49 per user per month.
  • Trello . Trello is a kanban tool that enables users to create customized boards for task and process management1. It is a tool for managing small projects and group assignments for both private and professional usage. Even for novices and small teams, it is simple to use and set up. It costs just $5 per month or $45 per year.
  • Jira . Jira is a project management application designed for agile software development teams. Numerous tools aid in keeping tabs on various projects, facilitating teamwork, and finding, monitoring, and documenting defects. Jira’s main cloud software costs $7.75 per user, per month for the Standard plan and $15.25 per year.

Creating a test application is only one component of a proof of concept. The documentation of software is also quite crucial in this regard. Thus, you will need to decide on the PoC tools to deal with it.

You may accomplish it with the help of the following PoC business tools:

  • Office Suite by Microsoft
  • Google Suite

You can use all of them at no charge.

Steps After Creating a PoC

Once you are ready with your proof of concept, it is time to get closer to the last stage – an app creation.

Step 1. Demonstrate Your PoC to Stakeholders

First, you should present your proof of concept to the people who make decisions for your project. This person might be the project’s sponsor, the product’s owner, or other vital stakeholders. They have to examine what you’ve produced before deciding whether or not to move on with the project.

Step 2. Get Feedback on Your PoC

After showing stakeholders your proof of concept, obtain feedback. These comments will enhance the PoC and increase stakeholder approval of the project. Understand your users’ needs to design well. Interviewing or polling previous users is the most distinctive approach to finding out what works and what doesn’t so that skilled designers can fix it.

Step 3. Respond to Feedback

In light of your feedback, modify and improve the proof of concept (PoC) you have created. This step could be introducing new features, addressing issues, or making other adjustments. Once you’ve implemented all of these changes, display the latest version.

Step 4. Work on the Actual Product

When you have received consent from the relevant parties, it is time to develop the real product. To do this, it’s necessary to create the product’s features and functionality, which must also be tested and deployed.

A proof of concept in software development - definition

To demonstrate you what PoC might look like and what goals to achieve, we have gathered some examples below.

PoC Software Development Examples

Imagine your company has a cost item that can be reduced by implementing new technology. Everyone knows that cutting costs is the right thing for business, but there’s a question of whether developing new software can justify those savings. It makes sense to look at the software development concept.

Or another example: you work for an insurance company, and it would be helpful to save the time and effort spent on each auto insurance review. You could integrate an artificial intelligence-based PO to implement this optimization. A proof of concept in software development can design and plan this step and show its feasibility. If proof of concept shows that the idea is feasible, you can proceed to prototype, then MVP, or after that, start developing an integrated product.

Now, let’s consider a particular example. Co-hosting is an option on Airbnb . Someone leases out a home through their website, while another party is responsible for the day-to-day operations of the rental. Developers carry out these services following a proof-of-concept test conducted by the corporation in Tokyo. The company’s staff paired up apartment owners and roommates by hand.

This proof-of-concept is excellent for creating the algorithms for the co-hosting functionality. The project was an in-depth simulation of what would occur on the app later, replete with human involvement to make adjustments as needed.

What’s Next? Developing PoC with IntelliSoft

We create solid proofs of concept. Our best result is a seamless product launch. How do we do that? With research and documentation, software development planning is more straightforward. We focus on product development early on. PoC is one of the phases.

Concept validation is vital for working on unique solutions – but it takes a long time. And in the innovation market, time is critical – by the time the MVP is released, the product idea may need to be updated. To reduce time to market, you can outsource development – and IntelliSoft can help you with that.

You may rely on us to help you create a proof of concept if you also want to enjoy the rewards. The team at IntelliSoft has a wealth of experience in building projects from the ground up and can lend a hand to you in verifying your concept.

Related readings: 

  • Who Does What? Understanding Roles in a Software Development Startup
  • Innovation Roadmap: When to Use a Proof of Concept or Prototype
  • 11 Software Developer Soft Skills Every Programmer Needs to Succeed
  • 12 Benefits of Outsourcing IT Support Services for Businesses
  • Story Point to Hours: Which Estimation Approach to Choose?

What Does POC Mean in Business?

POC in business refers to a "Proof of Concept," a strategy to test the feasibility of a business idea or product before fully committing to its development or launch.

What is the POC Meaning in Company?

In a company, POC meaning relates to evaluating the potential success of a project or idea in a real-world scenario to assess its viability and effectiveness.

How is POC Meaning Business Contexts?

What does POC stand for business? POC (Proof of Concept), is defined in business contexts as a demonstration that a certain concept, project, or product can be developed and work as intended in practical applications.

What Does POC meaning in tech?

POC stands for "Proof of Concept" in business, indicating a preliminary stage where ideas are tested to verify they can be implemented successfully.

What is a Company POC?

In a business context, "company POC" usually refers to a Proof of Concept conducted by a company. This is a preliminary stage where an idea or project is tested for feasibility before full-scale implementation.

What are POC examples?

Proof of Concept (POC) projects can vary widely across different industries and applications, but they all serve the purpose of demonstrating the feasibility of an idea or technology. For example, in the technology sector, a POC might involve developing a small-scale version of a software application to validate its functionality before full development. In automation testing, a POC could be used to assess whether a particular automation tool can meet the testing requirements of a complex software system. Another example could include creating a chatbot for customer service on platforms like Telegram to enhance user interaction and automate responses to common inquiries.

What is POC Meaning in Software Development?

In software development, POC meaning revolves around testing a specific concept or theory within the software to determine if it can be developed into a functional feature or product.

What is POC tech meaning?

In technology, POC stands for "Proof of Concept." It is a demonstration designed to determine whether a certain idea, concept, or technology is feasible and can be developed into a viable product. A POC aims to verify that the idea can be implemented in the real world, often before committing to a full-scale project development. This process is crucial in the early stages of product development lifecycle, particularly in software development, as it helps identify potential technical and logistical issues, assesses the practicality of the concept, and evaluates its potential impact and effectiveness. The successful outcome of a POC provides confirmation that the technical idea is feasible, guiding further development and investment decisions.

What is a Business IT POC and Why is it Important?

In the context of business and technology, "Business IT POC" stands for Proof of Concept in Information Technology. It refers to a preliminary project undertaken to determine the feasibility and viability of implementing a particular IT solution or innovation within a business context. This process helps businesses make educated decisions about investing in new technologies by testing their potential impact and effectiveness in a controlled, small-scale environment.

What is POC in IT?

In the realm of Information Technology (IT), a Proof of Concept (POC) is an integral part of the innovation and development process. It is used to demonstrate the feasibility and practical potential of a specific technology or software solution before embarking on full-scale development. The main purpose of a POC meaning software is to validate technical aspects of the proposed solution, such as compatibility, interoperability, and performance, under a controlled environment. This step is crucial for identifying potential technical issues, assessing the viability of the solution, and determining whether it meets the required criteria for success. By conducting a POC, IT professionals can ensure that a new technology or system can be integrated smoothly within existing infrastructure or can stand alone as a viable product, thereby minimizing risks and informed decision-making regarding project investment and development.

What is POC definition business?

What does proof of concept mean? POC meaning in business is a preliminary demonstration designed to validate the feasibility, viability, and potential of a concept, idea, or technology before committing to a full-scale project. It's a crucial step in the project development process that allows businesses to make educated decisions based on evidence gathered during the POC. POC business meaning involves testing the idea in a controlled environment to ensure it meets the necessary requirements and can achieve the desired outcome without significant investments. By conducting a POC (proof of concept), businesses can identify possible challenges, assess the practicality of the project, and determine its potential for success. This strategic approach helps minimize risks associated with new initiatives, ensuring that resources are allocated efficiently and effectively to ideas that have proven their worth.

What does POC stand for in technology?

POC meaning in software stands for Proof of Concept. It is a demonstration or prototype developed to verify the feasibility and practicality of a specific concept, idea, or technology. The primary purpose of a POC is to assess whether the proposed technological solution can be realized in a real-world environment and if it can meet the intended goals and requirements. By conducting a POC, organizations aim to determine the technical viability of their project ideas, addressing potential challenges and evaluating the prospects for success before moving forward with full-scale development. This process is a critical step in the product development lifecycle, especially in software development, as it helps mitigate risks and validate assumptions, ensuring that resources are invested wisely in projects with a clear path to realization.

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10 Proof of Concept Templates to Establish Project Viability and Attract the Right Investors

Praburam Srinivasan

Growth Marketing Manager

February 14, 2024

No matter how great of a business or product idea you have—it’s hard to make it grow if you’re not supported by the right investors or managers. Effectively selling your idea requires both truth and persuasion, and that’s why you need a proof of concept (PoC).

A proof of concept is the litmus test for your big idea —the checkpoint that separates tangible, low-risk, and profitable ideas from unrealistic dreams. With these high stakes, writing a proof of concept statement can be an unnerving job!

In this guide, we bring you 10 expert-picked proof of concept templates ideal for brainstorming and presentation. Whether you’re an entrepreneur seeking to turn your visionary concept into a marketable product or a project manager aiming to secure vital backing from stakeholders, use these templates as your guiding star. ⭐

What Is a Proof of Concept Template?

What makes a successful proof of concept template, 1. clickup example project plan template, 2. clickup high-level project plan template, 3. clickup creative project plan template, 4. clickup project deliverables template, 5. clickup competitive analysis template, 6. clickup data analysis findings template, 7. clickup analysis framework whiteboard template, 8. clickup risk assessment whiteboard template, 9. powerpoint proof of concept template diagram by slidemodel, 10. powerpoint proof of concept template by slideegg.

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A proof of concept document typically consists of demonstrating a product, service, or solution in a sales or profitability context. You have to cover the feasibility of bringing the idea into the real world so that your project is funded and you can start working on a prototype .

The problem is that many product owners find it challenging to present objective insights into their proposed idea, and this is where a readymade template comes in.

A proof of concept template is a structured framework that helps you present ideas in a practical and organized format. It’s a blueprint that outlines the essential steps and components needed to test and record the viability of your concept .

A proof of concept template is a path toward building a persuasive narrative that wins over stakeholders, de-risking your product, project, or business plan in the process. So, instead of wasting hours on what facets to demonstrate to your stakeholders, you can simply fill out the document to validate your hypothesis.

Some popular use cases of the template include:

  • Gaining stakeholder (investor or top management) approval
  • Determining the financial or technical viability of the project
  • Establishing market demand for a product

Think of a quality proof of concept template as your innovation roadmap and decision-making tool that should have the following:

  • A clear and easy-to-follow layout : A simple framework makes the drafting process hassle-free with defined sections to present PoC constraints and assumptions
  • Measurable objectives : It must define specific, measurable objectives and success criteria for the proof of concept, making it easy to determine failure scenarios or identify potential challenges
  • Resource planning : It should outline the required resources, including budget, time, and personnel, ensuring the allocation makes sense to the management
  • Risk analysis : A good PoC template includes a risk assessment section, helping you identify potential pitfalls and develop contingency plans to act as a shield against costly missteps 🛡️
  • Success criteria : Most templates contain prompts to state what success looks like so you or your investors know when it’s time to move forward or pivot
  • Stakeholder communication : It should provide a plan for engaging and updating stakeholders, building dependable support for the project

10 Useful Proof of Concept Templates in PowerPoint and ClickUp

We’ve explored numerous templates suitable for proof of concept documentation, and only the cream of the crop in ClickUp and PowerPoint has earned a spot on our list. Now, let’s delve into why they stand out! 🤩

Example Project Plan Template by ClickUp

Leave uncertainty behind and put an end to lingering stakeholder questions because, with the ClickUp Example Project Plan Template , demonstrating concepts is just about to get easier!

This intuitive and user-friendly template is made for streamlining your proof of concept. The document takes the guesswork out of the equation, letting you chart your proposed project’s path with absolute assurance using a visually rich, color-coded structure.

Map out your proof of concept work using five default Custom Fields :

  • Impact Level
  • Effort Level

These fields will help you communicate resource requirements and risk levels, enabling your stakeholders to have useful info at their fingertips.

The template offers two ClickUp views to record and navigate data.

Start playing by adding activities to the Project Plan Template List view . This view is grouped by Section to identify the activities the team needs to complete at every project phase. Update task details by clicking on the available fields and see how every PoC assumption or constraint impacts resource allocation or department workload.

The Planning Progress Board view is a Kanban Board that displays tasks as cards. This board is grouped by Status to determine the progress of the planned activities. You can drag and drop the card across the screen to update a task’s status or click on a card to check further details about the action. 🎬

ClickUp High-Level Project Plan Template

Planning a baby project often feels like navigating a labyrinth, but the ClickUp High-Level Project Plan Template helps you see the big picture and carve the path to success. It simplifies lofty ideas into manageable steps, focusing on establishing the project’s tone and direction to your stakeholders in a visual manner.

Within this template, the Deliverable List view gives users a snapshot of the intricate web of tasks necessary to develop the project. The progress bar elegantly tells you where each activity or team stands, ensuring a crystal-clear view for proof of concept-reviewing managers.

It doesn’t stop here; you can create unique board views for tasks pertaining to each department, allowing you to pinpoint accountability before the project takes off.

For instance, content teams would love the Copywriter and Graphic Designer boards offering a panoramic view of team tasks. Customize them with Custom Fields like Copy and Design Stages , providing insights into team expectations in a glanceable format.

And if you prefer a chronological perspective, the Timeline view unfolds all tasks in a logical sequence, adjusted for project dependencies . It’s your proof of concept watchtower to ensure the proposed dates or delivery schedules make sense. 🗼

ClickUp Creative Project Plan Template

Pitching a creative project plan can be really stressful because you’re often handling intangible or abstract concepts. But with the ClickUp Creative Project Plan Template , you have a personal assistant helping you outline tasks and communicate concrete goals! 🪻

This template makes it easy to define a project roadmap , complete with a phase-wise breakdown of budget and tasks. Use it to get a fresh perspective on managing creative tasks and assets and turn vague ideas into engaging narratives .

The template’s Creative Project List view is like your personal command center. It gives you an overview of your project’s release phase by phase. For instance, the Project Phase dropdown field lets you categorize tasks into phases like Planning , Pre-Production , Production , and Post-Production . And the Team Assigned dropdown field helps you delegate tasks to specific teams. 

Record the nitty-gritty of each phase using Custom Fields like:

  • Task due date
  • Assigned team
  • Final output
  • Approval type

The Progress Board and Timeline views serve as a visual outline of project tasks, depicting deadlines and timetables and highlighting any unscheduled tasks so that your managers can make an informed decision about investing in the venture.

ClickUp Project Deliverables Template

The ClickUp Project Deliverables Template is another excellent canvas for reconstructing a business idea and plan into practical delivery items . 

Presented in a default List format, this template offers a multitude of views and customizable features to:

  • Communicate expected timelines and outcomes to stakeholders
  • Estimate budget requirements
  • Identify potential risks or issues with delivery
  • Account for quality assurance aspects of your proof of concept

Using this template is easy! For example, if you’re proposing a fresh marketing idea to your team leader, just go to the Project Lifecycle List view and start listing out all content- and design-related deliverables . If you have client-based deliverables, switch to the Client Board view, and voila! You’ll have personalized boards for each client.

This template is your go-to for presenting manufacturing or construction projects. Use the Project Gantt view to map out a project timeline and highlight task dependencies, like when the foundation must be completed before framing begins.

As for coming up with a proof of concept for software development projects , the Team Bandwidth Workload view helps you allocate tasks efficiently, ensuring that the front-end and back-end teams are assigned optimally.

Lastly, the Status Breakdown Table view provides a high-level snapshot of your projects, just like an event planner can instantly gauge the progress of different tasks, whether they’re In Progress , Completed , or Pending .

ClickUp Competitive Analysis Template

In the world of proof of concept documents, where innovation reigns supreme and competition becomes a driving factor, the winning statement is often about profitability and outsmarting market rivals. If you need your proof of concept to embody a heavily competitive tone, try this ClickUp Competitive Analysis Template .

With this template and its plotting-friendly quadrant layout at your disposal, you can dive deep into analyzing your concept’s feasibility against existing products and services, unveiling both its strong points and risk factors.

And it doesn’t stop there; you can set clear milestones to systematically advance your project to gain market share bit by bit. This matrix template provides a structured roadmap for your proof of concept journey, encompassing the Competitive Analysis Matrix for:

  • Identifying main competitors in the industry landscape
  • Creating a comparison chart
  • Gathering background information
  • Profiling target customers
  • Focusing on the 4 P’s of marketing ( Product , Price , Promotion , and Place )
  • Summarizing your project’s feasibility and risks

Within this organized framework, you can methodically assess and refine your concept, ensuring it’s well-prepared for what’s coming. 🛸

ClickUp Data Analysis Findings Template

In the business world, you can’t afford to place all your bets on mere opinions. Instead, you lean on something far more steadfast—the cold, hard numbers that lie at the heart of key metrics .

The ClickUp Data Analysis Findings Template will help you make informed choices for your business by showcasing proof of concept findings through five sections:

  • Introduction
  • Analysis Methods
  • Data Findings
  • Conclusions
  • Recommendations

This Doc template comes with standard boilerplate texts used in the research space , helping you draft your proof of concept analysis in record time.

Let’s say you’re running a tech company, and you’re proposing the development of a new app to shorten the onboarding process for new hires. Now, this report template would be perfect for you to analyze this issue.

You’d start by defining the problem —in this case, the lengthy onboarding process . Then, you’d explain why it’s essential to address this—maybe it’s costing too much or delaying projects . Next, you’d outline the scope of introducing an onboarding app with items like:

  • What will be the cost of developing the app?
  • What’s the expected delivery timeline?
  • How much cost savings can you expect after deployment?

You’d then detail how you collected your data and what statistical methods you used to analyze it. After analyzing the data , you’d present your findings. You may have found out that onboarding with the app would take five days instead of 10, saving you about $1,000 for each hiring cycle.

Based on your findings, you’d make recommendations —perhaps approving the app development or looking for a more cost-efficient alternative—it’s up to you! 🤑

ClickUp Analysis Framework Whiteboard Template

The ClickUp Analysis Framework Whiteboard Template is an interactive platform for visualizing new ideas, assessing their impact and complexity, and planning sample workflows.

Brainstorm the viability of your idea with your collaborators directly within the template. With the Analysis Template view , you can create a framework for your analysis using color-coded sections. Organize ideating or PoC tasks into two distinct statuses: Open and Complete .

This binary system provides a clear visual representation of when you can get your statement ready for stakeholders. It can also work well for software development teams needing to create a way to classify tasks.

This template has a matrix-like Whiteboard map to compare and analyze different aspects of your concept. Editing options allow you to format your content while drawing tools and drag-and-drop shapes enable sketching and annotations. Add attachments, links, or comments on the canvas for additional context.

The template’s real-time updating feature ensures that all team members are in the loop about your idea’s progress. Integrate ClickUp with tools like Zoom to present your finalized proof of concept to stakeholders quickly.

The ClickUp Risk Assessment Whiteboard Template

Discerning the level of risk involved in a new project is a standard industry practice. Depending on who your stakeholders are, your concept risks could be anything from impractical implementation to resource shortages.

With the ClickUp Risk Assessment Whiteboard Template , you get the ability to predict and navigate these potential pitfalls in another no-nonsense matrix layout.

It’s a virtual whiteboard with editing tools where your team can scribble ideas, draw logical diagrams, and jot down points in sticky notes, making risk discussions feel like conflict-free brainstorming sessions . 🎨

Need to keep track of important risk details? No worries. You can create Custom Fields for each risk, detailing everything from the description to mitigation plans, and categorize it as Very Likely , Likely , Unlikely , or Very Unlikely . Plot the intensity of the risk as Minor , Average , Major , or Severe .

The matrix grids are color-coded to display different risk levels, which makes decision-making quick and objective .

PowerPoint Proof of Concept Template Diagram by SlideModel

The Proof of Concept PowerPoint Template Diagram by SlideModel is a canvas for justifying the practical implementation of your idea, ensuring it’s ready for takeoff. 🛫

Divided into three sections— Concept , Discovery , and Outcome —this template guides presenters to clarify the key points supporting their business concept. The representative icons, arranged in circular shapes, not only lend a professional touch but also emphasize the idea’s continuity.

With the option of two background color variants and compatibility with PowerPoint and Google Slides , this template offers both flexibility and aesthetic appeal!

PowerPoint Proof of Concept Template by SlideEgg

The Proof of Concept PowerPoint Template by SlideEgg is your handy solution for delivering project management insights with flair. This creative template is not just a time-saver but a game-changer in how you present your ideas and solutions.

With its stunning multi-color arrow model infographics , it adds a touch of elegance to your brand-new product or project management concept . Here’s what the color-coded fields indicate:

  • Red for confirming scope 🔴
  • Purple for setting goals 🟣
  • Blue for executing plans 🔵
  • Orange for analyzing and scaling 🟠

The table, featuring a soothing gray-shaded background, enhances clarity and conciseness in visualizing your information. Tailor it to meet your specific presentation needs and impress your intended audience!

Fuel Innovative Ideas with ClickUp Templates

A robust proof of concept document can gradually morph into a promising prototype and successful product—and as a top project management tool , Clickup can help you with every phase of your business idea—whether it’s for marketing, sales, product, or software development teams.

Besides proof of concept frameworks, ClickUp offers 1,000+ other templates to manage different aspects of your project, be it planning, tracking, or reporting. And the best part? Most of these options are accessible for free!

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What Is a Proof of Concept (POC)? How to Write It with Examples

business plan proof of concept

The software development process comprises many essential moving parts that can hardly be overlooked or underestimated. One is an end-to-end feasibility and viability study of an early-stage idea that is not mature enough for technology enablement and consecutive implementation. 

For example, suppose you are in the mood for traveling. In that case, you research potential sightseeing destinations, assess the availability of free time, and check the most affordable spots on Airbnb or Booking before buying plane tickets and scheduling some time off your work. The next traveling endeavor is exciting, but without putting your plans and ideas to the test, you may not end up with the vacation you expected.

Like any idea, a new software development idea needs to be validated and prepared to respond to real-life problems and challenges. There are multiple ways for entrepreneurs to confirm that a raw idea is applicable to practice. In one of the previous articles, we contrasted POC vs. Prototype vs. MVP , but today, we will talk about the approach that allows you to test a raw idea without commitments.

We'll put proof of concept POC in the spotlight, it's a common practice for those planning MVP development or adding new features to an existing product. Let's define and explain this term and consider the topic of POC in software development in detail.

What Does Proof of Concept Mean?

A proof of concept isn't just fancy startup vocabulary . It's a feasibility study of a novice idea in the earliest stages of the project . It eventually leads to obtaining confirmation of the idea's credibility and readiness for the target market.

Importantly, the proof of concept approach in software development allows you to verify that a product or feature idea is feasible and capable of living up to user needs. It may even note how it can work and the possible tech required for its creation. POC involves doing research, lets you collect early feedback and eliminate risks and errors in the later stages of the SDLC or product development life cycle .

Proof of Concept POC definition

The proof of concept definition also implies that the project:

  • will solve real-world problems;
  • can be implemented with present-day technologies;
  • is safe from potential roadblocks.

At which point of the project should you go through proof of concept? Suppose you want to find evidence that the new idea can pass the test of time, meet appropriate industry standards, and interest stakeholders and investors (i.e., thanks to the facts you've added to your created pitch deck ). In that case, POC should follow the ideation stage of your project. It'll provide valuable feedback, direct you in the right way, and let you assess the idea from different and, in most cases, unexpected angles.  

However, not every project requires a proof of concept because some are based on generic or already proven ideas. 

So, what is a POC handy for? Next, we'll go over the advantages of proof of concept, who the target users and adopters of a POC are, and which projects can get the most value out of it.

business plan proof of concept

When Do You Use a Proof of Concept?

The main question you need to ask before jumping to conclusions about adding a proof of concept POC step to a project life cycle is whether the use case is brand new and unique .

Should You Go through Proof of Concept (PoC)?

When the answer is no , then every envisioned functionality has already been tested and proven that it can be implemented. The verdict: there is no need to perform POC actions. When the answer is yes , you don't have access to previous projects and compare the outcomes of the precedent work. The verdict: you need to test the new idea from scratch. 

What do you get from undergoing this process?

Creating an efficient and actionable proof of concept in software development is about:

  • procuring the project's initial requirements;
  • identifying its objectives, OKRs and KPIs ;
  • and establishing the right flow of actions to make it a success.

As a result, you can leverage detailed documentation that outlines the process brick-by-brick, from core functionality to consecutive deployment and development, and find answers to many important product development questions .

What Are the Benefits of Proof of Concept?

Now that we know what is POC in business (and that it's generally handled early on during the discovery phase , let's take a quick look at why this process is meaningful and which gains it can bring. Some of the major proof of concept benefits include:

  • Business viability evaluation — going through POC lets you answer a vital question: is this idea worth it business-wise? You get to study preliminary data and make certain that there exists a problem that needs solving, that there is demand for such a feature, product, or service, that there's customer interest, and the market is ready for it. Hence, you can use evidence to decide whether you want to engage in full development.
  • Validating technical feasibility — proof of concept allows you to ensure that it is technically possible to bring such a solution to life. By finding out about probable gaps from the start, it'll be easier to iterate before full-scale development starts.
  • Mitigating tech-related risks — a POC is also a way to avoid risks before getting things done and putting to question initial expectations. You get to identify various bottlenecks and possible issues early on, as you'll investigate integral parts of product development dealing with the optimal tech stack , solution scalability, performance, integrations, and other fundamentals.
  • Reducing financial risks — importantly, going through a proof of concept requires much fewer resources than developing a full-fledged and complete product. This way, you can weigh the pros and cons of investing in the project, calculate a realistic estimate of the expenses and resources needed, as well as the potential ROI. Not to mention that even if a POC proves that the idea isn't a good one, this can save you the trouble of investing in a non-viable product. ‍
  • Refining the business strategy — with a clear understanding of all the points mentioned above, you can better mold the business strategy, choose an appropriate model, polish your product scope, as well as put together logical requirements and specifications, which will all surely help you with a smoother product or MVP launch .

Not sure how to approach POC?

Upsilon's team can share profound expertise on proof of concept and product development.

Major Steps to Write a Proof of Concept

As you see, not skipping the proof of concept stage can bring multiple advantages. But where do you begin with POC, and how do you organize the process? Let's go over the common proof of concept steps in this short checklist to help you get started and ensure a successful evaluation.

Proof of Concept in 7 Steps

Start with a Clearly Defined Business Idea and POC Objectives

At this step, you need to transition from operating on guesswork and assumptions to sourcing and finding a business idea that's clear and straightforward. Otherwise, you won't be able to conduct research properly nor articulate the value of the future solution to stakeholders.

Start by answering the following question: " What do I want to explore through the POC process? " You need to define the idea behind your proof of concept initiative, the problem you're thinking about solving with the future product, or the goal you want to achieve with it.

Therefore, you have to finalize the proof of concept objectives and project aims. To do so, you must identify who the end-users are and what you think their pain points are. Then, suggest how the envisioned software or solution will help address them.

Define the Scope of Your POC

Scope creep is a common scenario, as not all teams manage to determine what to include in the proof of concept stage. Although there are no strict rules as to what can or should be included in the phase, you must evaluate the project and indicate the boundaries of what you're including in the scope.

For example, your proof of concept process may include testing specific use cases, shortlisting the functionality to focus on first, calculating and prognosing the MVP cost , or anything along these lines.

Set Your Performance Goals

You should also ideate the deliverables and end results of POC activities to ensure consistency of your work. Which outcomes will let you determine whether the proof of concept was successful or not?

To set the new idea in motion, you need to generate hypotheses and assess which parts of the process work correctly and which ones need refinement. For that, it is necessary to track their progress and measure the efficiency of each undertaking when going through a POC stage. 

As a result, you will be able to prove the validity of your offer on target markets and ensure that the idea is feasible in the long run. Startups rely heavily on tracking startup KPIs and metrics , so it makes sense to shortlist a pool of relevant criteria to measure your success . For example, could a large number of sign-ups on the landing page signal user interest and high demand? The specific criteria set will differ from product to product.

Plus, now could be the right time to get hold of decent analytics solutions, for instance, Amplitude or Mixpanel .

business plan proof of concept

Note the POC Process Participants and Pick the Right Resources

Who will participate in the proof of concept activities? Who will be making the calls? Depending on how developed your company is (or if you're running solo altogether), you can look into the startup team structure and distinguish the roles or particular people who'll be involved.

You might need to involve stakeholders, marketers, designers, developers, business analysts, testers, or any other relevant team members. So, try to decide who'll be responsible for production and decision-making.

Create a shortlist and finalize the skills required to complete the flow of POC tasks with precision and quality in mind. Identify knowledge gaps and fill them with the right expertise of internal or third-party specialists.

Estimate Duration and Effort

At this step, you need to identify the resources and explain how you will use them during your POC. To prove the feasibility of your business idea, it is important not to forget to count the time and effort necessary for its implementation .

Do you have specific tasks in mind? How much time will you need to complete them? Initial estimations can do you a favor once you've interested the stakeholders, as you can hit them with carefully planned deadlines and person-hour totals .

As it is likely to be a pilot project with no preceding evaluations of that kind, the proof of concept stage needs to consider all the factors affecting time and effort estimates and suggest ways to overcome potential challenges and risks. Otherwise, you won't have accurate project estimations or timelines, and being realistic is highly important.

Proceed with POC Activities

When the plan is lined out, it's time to move on to implementation , that is, act on specific tasks . What could these be?

  • For instance, you'll likely need to do your homework and invest time into conducting thorough user, competitor, and market research .
  • Another crucial goal of the proof of concept in software development could be to ensure that it is possible to implement the product or SaaS idea you have using current technology. Therefore, you need to provide a plan for consecutive iterations of the solution and define its long-term value.
  • The proof of concept phase may also include formulating and testing your hypotheses. To do so, you might need to put together landing pages, make email send-outs, hold interviews with focus groups, or do other things.
  • You could also build a concise product development roadmap at this point, indicating the must-have features and the release plan for the product's early version. Making doable timeline estimates of the entire project (in line with the startup budget) could be part of the scope as well.

Proof of Concept Evaluation

Once you've executed the tasks in your POC scope, you have to evaluate the results. Study the collected data, user insights, and feedback, and analyze your findings. In essence, this is the moment for informed decision-making as you should determine whether the proof of concept was successful or not and whether you should proceed to development.

Perhaps the gained insights will push you toward amending the initial plan, re-focusing your efforts, or will lead you to the necessity of going through another proof of concept round.

If the POC was a success , reassess how you should best proceed with product execution and the project on the whole. If the POC wasn't successful , log all the outcomes and details of the experiment and your work (maybe you'll return to these results one day).

business plan proof of concept

Proof of Concept Template

To ensure a smooth and effective proof of concept process you'll need a systematic approach. This way, you'll have more chances to end up with a well-executed POC that delivers the desired outcomes. To equip you with a solid plan, we've put together a simple proof of concept template. This proof of concept checklist can serve as a roadmap, guiding you through the key checkpoints and helping you test the waters in an organized manner. So, roll up your sleeves and get started!

Proof of Concept Checklist Template

What Happens After Proof of Concept in Software Development?

The proper proof of concept meaning is to collect all the necessary information and form a foundation for future product development. It is worth keeping in mind that it should contribute to the fulfillment of the company's or stakeholders' goals. So, after you've arrived at feasible non-tech or tech startup ideas , it is time to check if they are workable. Here's what you need to proceed with.

What steps follow proof of concept

Solution Prototyping and Design

After ensuring that the project is worth a shot and planning the work ahead (from prioritizing features to marking the milestones), it's time to put the documented scenario into action. 

Throughout the process, you are going to create imitations of the user interface and the steps that will take place there. You can demonstrate the basic features and workflows by developing mockups, wireframes, or sketches. There are plenty of MVP tools that can facilitate the creation of a great MVP design , including Figma.

MVP Creation and Launch  

Then it's time to build the most basic version of the future solution . We mean creating an MVP of the software, which serves as the base for a full-fledged market-ready solution. You can opt for various types of minimum viable products at this point, which can differ in intricacy and required resources.

As a rule, the product will only have a minimal set of core features that are capable of solving the user problem. Nonetheless, it has to be free of bugs and glitches, thus, the QA testing process is crucial. Once the solution's early version is well-tested and ready for takeoff, you can proceed to its launch.

Analyzing Feedback

Next, it is necessary to gain real-world feedback by engaging a small group of designated end-users. Insightful feedback from all interested parties will fully equip you with the needed knowledge about what needs improvement.

By collecting and analyzing user feedback (say, by building in public or reaching out to the audience to learn their point of view), you may create a genuinely polished interface, add relevant features, and lay the groundwork for optimal performance.

The MVP testing process will point at drawbacks and inefficiencies that could have been overlooked at the initial stage. The final aim is to ensure the envisioned solution aligns with end-user and stakeholder expectations.

Product Scaling

Once you've gone through an ungrateful business of fine-tuning and adjusting your solution after MVP release, there comes a moment when you start going through repeated success. That is the most optimal period for entering the next stage of growth or expansion .

When creating an entirely new software product from scratch, stakeholders are likely to expect it to be scaled over time. Luckily, with proof of concept and the agile MVP approach, this road has a minimum number of blocks and hindrances as it removes unnecessary or non-viable features from the very outset.

business plan proof of concept

Proof of Concept Examples

How can you harness the power of POC? Let's overview a few notable examples of proof of concept usage. These companies leveraged POC, which eventually led them to success.

In exploring ground-breaking software solutions in this age of rapid technological advancement, particularly within the confines of proof of concept (POC) development, it's essential to not only consider the solo venture into new territories but also thoroughly understand and evaluate the competitive landscape. A key element in this assessment is to look beyond just one solution provider. For instance, when dealing with product development tools similar to Reprise, evaluating a comprehensive comparison of Reprise alternatives can enlighten developers and project managers about varied options available, elevating the level of innovation and efficiency conceivable in their projects.

Bringing up a proof of concept in software development, Netflix's story about harnessing innovation is a great fit. Initially, Netflix was a service offering to send DVDs by mail. Yet ten years after its 1997 launch, the company completely transformed its business model and introduced an Internet version of its video services available on subscription. How did they ensure demand for transitioning online and shifting to such digital content?

Starting from 2000, the team leveraged data analytics and studied user behavior based on the collected data. They came to discover that this could be a wonderful opportunity for business expansion. Their online version reached over 4m subscribers by 2005, which served as a basis for their 2007 launch of video streaming services. Their value proposition still focuses on accessibility and affordability, making the product such a global hit today, appreciated for its great recommendation engine with personalized suggestions.

Airbnb is the most reputed service for finding and booking properties for travelers. They came up with an idea to streamline the collaboration of hosters and co-hosters to make the management process more efficient and straightforward.

The company initiated a POC in Tokyo to lay the foundation for the new feature of co-hosting. As Cameron Wu, an Experience Designer, mentions: " It would be several months before we could design and implement the components of our service, so in order to test the concept, we launched a service prototype in Tokyo ." The goal was to create a simulation of the new feature , which is still in the early stages of development. Today, Airbnb is among the most renowned MVP examples for inspiration.

Here's another great example of proof of concept in business. Back in 2013, Melanie Perkins, an Australian entrepreneur, wanted to transform the concept of digital design, making it more accessible to the masses. The aim was to provide a straightforward alternative to difficult-to-grasp design platforms like Microsoft and Adobe and help people no matter what they wanted to accomplish (e.g., make a logo , social media images, business cards, presentations, or anything else).

Before rushing to build the full-fledged online design platform, Melanie and the team wanted to test out the idea, so they set up a petite online school yearbook design business. In particular, they launched a website that helped them prove their hypothesis: there's a need for such a simple design solution.

It took a substantial amount of time before the first Amazon Go shop went to market. Initially, the company needed to test the idea and provide evidence that it would be in demand among ordinary consumers.

For that, Amazon had to prove the viability of its new product by testing it on employees internally . After a couple of rounds of trying different technologies, Amazon came up with the perfect combination of tools, which was included in the Amazon Go facilities.

Looking for a team to bring your product to life?

Feel free to reach out to Upsilon, we can help your product progress from idea initiation to development.

Final Thoughts on Proof of Concept (POC)

Keeping in mind that the startup failure statistics suggest that only 10% of startups make it through their first year after launch, it is crucial to ensure that the raw idea can survive in the long run. One of the most credible ways to achieve that objective is to document every step and detail of the proof of concept.

Many successful proof of concept examples pinpoint that it is a great way to showcase an idea to end-users and stakeholders and confirm its feasibility. Think of it as the first step in realizing a pilot project or adding new features to your current offering. Without it, it is hard to imagine consecutive development phases and further deployment.

If you want to get the most out of proof of concept in software development or get a consultation on MVP development services for startups , don't hesitate to contact us . Upsilon has years of experience in helping startups grow from MVPs to 9-digit businesses, and we have sprint-based dedicated team pricing too!

business plan proof of concept

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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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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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7 Proof of Concept Examples from Real Startups

Błażej Kosmowski

Many startup founders ask if they should even bother with a proof of concept. Why not just go straight to buidling a minimum viable product ?

The truth is MVPs require significant capital investments - often $35K+ with US developers. That’s a lot of cash to invest in something that might end up being part of the nearly 90% of startups that fail .

Building a proof of concept before kicking off an MVP project can help significantly reduce startup risk by validating market demand and product feasibility quickly and at a very low cost.

What is a software proof of concept?

Why are proof of concepts important in software development, proof of concept goals.

  • 1. Test the waters with an explainer video (Dropbox)
  • 2. Build demand before you have a product (SwipeWell)
  • 3. Validate an idea through customer interviews (Drip)
  • 4. Evaluate an idea with crowdfunding (Allbirds)
  • 5. Asses demand with a landing page (Buffer)
  • 6. Experiment with a simple prototype (Instacart)
  • 7. Let another company do the heavy lifting (Etsy)

Proof of concept development process

A software proof of concept (PoC) is designed to demonstrate the feasibility of a proposed software solution. A proof of concept could be as informal as creating a marketing video and gauging interest in the product idea or as formal as creating a simple hand-built version of the software to test its feasibility.

Regardless of the exact approach, proof of concepts are typically low cost and developed very early in the formation of a new business or product idea. They can be used to justify later stages of product development such as a prototype or minimum viable product (MVP).

A successful proof of concept will answer the questions “is this idea feasible?” and “is this worth developing further?”

While not the right fit for everyone, a PoC project is an important step for many startup teams as it can test out one or more business concepts before moving on to develop a full product prototype or raise funding.

Proof of concepts are particularly important for businesses that are entering an unknown market or introducing a new type of product. Depending on your product idea you may find that a proof of concept is helpful to:

  • Test a new business model or strategy
  • Validate a project idea is worth pursuing further
  • Gauge market demand
  • Determine interest in a new or original idea
  • Get feedback from the target market

Uses For A Proof Of Concept

Ultimately, proof of concepts can help new business owners validate their ideas, increase their chances of success and avoid wasting time and resources on projects that are doomed to fail.

As you make a plan to test your business idea with a proof of concept, you should have first thought about what your goals are as well as have defined success criteria for your project. What are you trying to accomplish by building a proof of concept? Some goals might include:

  • To collect feedback from your target audience
  • To visualize how the basic features will look
  • To gauge interest in your product
  • To attract potential investors
  • To validate if your idea is feasible

Your high-level goals for the proof of concept will dictate what type of proof of concept you should build, what your budget and timeline should look like, and what team members need to be involved in the process.

Remember, a proof of concept is different from a product prototype or minimum viable product. To help keep costs to a minimum, proof of concept project teams should be as small as possible (often just one person). While some teams choose to hire project managers to help develop the proof of concept, most teams should be able to handle the PoC build internally.

7 proof of concept examples from real startups

We often hear about an early version of our favorite apps, but these “early” versions were often months or even years after the first proof of concept was built. If you’re building your own software product, it can be helpful to see how others before you have started out, so let’s take a look at 8 successful proof of concept stories.

Proof Of Concept Steps

Test the waters with an explainer video (Dropbox)

When you think of a proof of concept, you probably don’t think of making a video. But, that’s exactly what Dropbox did in the early days of their business. They aimed to answer the question “does this solution resonate with people.”

And, resonate it did.

Explainer Video

The video demonstrating potential basic features of the software went viral. Dropbox’s beta sign-up list went from 5,000 to 75,000 overnight thanks to the proof of concept video they built.

Using a simple video (as opposed to actual working software), Dropbox was able to draw a very large audience. This accomplished a few things. First, it helped them validate that their idea was valid - they had real people interested in it! And, second, they built an audience (future paying customers) before the product was even built.

Build demand before you have a product (SwipeWell)

Dropbox created demand by using a video, but there are many other ways to generate (and validate) demand before you ever have a product. Many companies such as AngelList and SwipeWell have built simple websites and blogs to stir up interest before they ever built a full product.

AngelList, a company that started as a site introducing tech startups to investors, made a very early business introduction by way of a blog . The blog garnered so much interest that they used it to build an email list, which later turned into a means to acquire their first customers.

SwipeWell recently announced on Twitter that they have 1,000 accounts created before they’ve launched their product. This is another proof of concept process that is built around the idea that you can (and should) build demand before you have a product. Doing so allows you to first and foremost prove there is interest in your idea, and second, allow you to more quickly scale once your product is launched.

Swipe Well

Validate an idea through customer interviews (Drip)

Email marketing engine, Drip, aimed to validate the value of their product idea by talking to potential customers. The founder conducted interviews within his own network to see how much people would be willing to pay for the product he aimed to develop.

This proof of concept example demonstrates the value in keeping this phase high-level. The aim of the PoC should be to validate the proposed idea, not to provide technical proof of its validity or provide a working model of the end product.

OpenBay also interviewed customers during the proof of concept stage, but their goal was to see what people thought of their idea more generally. As a marketplace platform, they wanted to validate that both sides of the marketplace resonated with their potential product.

Doing this type of market research through interviewing your target audience is a great way to prove your business concept is valid before you begin the costly software development process.

Evaluate an idea with crowdfunding (Allbirds)

It’s one thing to ask people how much they would pay for a product. It’s another thing altogether to actually ask people to _pay. _That’s exactly what companies like Allbirds and Pebble did long before they had a shipping product.

Allbirds

Today it’s easy to set up crowdfunding through a site like Kickstarter . A business can put their idea out into the market and have the option for people to “pre-pay” for the product before it’s actually ready. This type of proof of concept tests not just if people are interested but if they’ll actually get out their credit cards and put real money in.

It’s a great option for companies who are looking to kill two birds with one stone and validate consumer interest and also raise capital to move onto building a prototype or minimum viable product.

Asses demand with a landing page (Buffer)

If you’re not up for putting your project on a site like Kickstarter, you could opt to build a simple landing page or website to assess demand. Many brands, like Buffer story , are opting to do this “pre-marketing” work before they are even fully funded.

Buffer

It’s a great way to not only see if people are interested in your idea but also to start establishing yourself in the market and building the foundations of SEO-driven content. This type of proof of concept demonstrates the value of putting your idea out there as early as possible, rather than waiting until you have a minimum viable product.

Experiment with a simple prototype (Instacart)

Prototypes and proof of concepts are often confused. You might hear people actually use these two terms interchangeably, but they are quite different.

In general prototypes are at least a somewhat functional version of the end product. Prototypes aren’t typically a version of the product you could actually ship to customers, but they are an early version that can be used to raise funding or conduct testing.

However, a really early prototype could be used as a proof of concept. Sometimes the best way to test feasibility of something is to actually try to build it.

Instacart

Instacart founder Apoorva Mehta did just that. He created a simple app that he used as both the “shopper” and the “customer.” He used this early prototype version of Instacart to validate his idea was possible.

Similarly, Stripe founders built a quick-and-dirty version of their app in their college dorm rooms. Their aim was less to validate its feasibility and more to experiment with functionality and get input from friends.

Building a very basic prototype as your proof of concept can work for many companies. Sometimes the only way to try out an idea is to put in a little software development work early on. However, be very cautious that you do not overspend on this stage of product development. If you can’t implement the simple prototype yourself (or at least at a very low cost), we recommend you try a different software proof of concept process.

Let another company do the heavy lifting (Etsy)

Sometimes instead of building a proof of concept from scratch you can simply observe what’s already working in the market and base a product off of that.

This is exactly what Etsy did . They observed how well eBay was doing, and they decided to build a similar site that was more craft-focused.

This validation-by-observation is perhaps the simplest form of a proof of concept. But, you should be careful not to make too many assumptions when doing this kind of observation. eBay may have helped prove the validity of a digital consumer-to-consumer marketplace, but it didn’t necessarily prove the validity of such a site for the crafting niche.

Regardless, letting other companies do the heavy lifting and using keen observation skills can help prevent unnecessary spending on a pilot project or proof of concept.

As we’ve seen, proof of concepts can come in many forms from ultra-basic blog posts you could spin up in a matter of hours to a somewhat-functional app interface that might take weeks or months to build.

Because of the wide range of types of projects, the PoC development process can vary quite substantially. However, proof of concept development generally follows these steps:

  • Set goals for the proof of concept
  • Decide on the general PoC approach
  • Choose the right technologies or platforms
  • Select the development team
  • Build the proof of concept
  • Asses the results

With all of this proof of concept inspiration, you might already be thinking of a few ways you can spin up a proof of concept for your own startup.

If you’re not sure how to move forward with PoC development, don’t be afraid to reach out . At SoftKraft, we provide end-to-end product development support . We’ll help you sort out your ideas, develop a basic PoC and then move right into developing an MVP to help get you your product to market faster.

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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!

Case Studies

Case studies: proof of concept.

  • Concept: Tesla aimed to develop autonomous driving technology to enable self-driving cars.
  • PoC Objective: To demonstrate the feasibility of autonomous vehicle navigation and safety features.
  • Implementation: Tesla implemented a proof-of-concept version of its Autopilot software with basic autonomous driving capabilities.
  • Results: Conducted extensive testing on public roads to validate the performance and safety of Autopilot features.
  • Outcome: Positive results from PoC trials paved the way for further development and refinement of Tesla ’s Autopilot technology, leading to its integration into production vehicles.
  • Concept: Amazon proposed using drones for autonomous package delivery through its Prime Air service.
  • PoC Objective: To test the feasibility of drone delivery technology in real-world conditions.
  • Implementation: Amazon conducted a proof-of-concept trial with prototype delivery drones in select locations.
  • Results: Tested drone flight capabilities, navigation systems, and delivery logistics in various weather conditions and environments.
  • Outcome: Successful PoC trials demonstrated the potential of drone delivery for faster and more efficient package shipping, leading to further investment and regulatory approvals.
  • Concept: Google introduced Google Glass, a wearable augmented reality device with various applications.
  • PoC Objective: To showcase the potential of augmented reality technology in everyday life scenarios.
  • Implementation: Google conducted proof-of-concept trials with early adopters and developers to explore use cases.
  • Results: Gathered feedback on user experience, functionality, and practicality of Google Glass in different settings.
  • Outcome: Despite initial excitement, mixed reviews and concerns over privacy and usability led to the discontinuation of Google Glass as a consumer product, but it found success in enterprise applications such as healthcare and manufacturing.
  • Concept: Uber proposed a network of electric vertical takeoff and landing (eVTOL) aircraft for urban air transportation.
  • PoC Objective: To assess the feasibility and viability of eVTOL technology for aerial ridesharing.
  • Implementation: Uber conducted proof-of-concept demonstrations with prototype eVTOL aircraft in test flights.
  • Results: Evaluated aircraft performance, safety features, noise levels, and infrastructure requirements for urban air mobility.
  • Outcome: Positive results from PoC trials demonstrated the potential of eVTOL technology for reducing urban congestion and enhancing transportation efficiency, leading to continued investment and partnerships in the emerging market.
  • Concept: SpaceX aimed to develop reusable rocket technology to reduce the cost of space exploration and satellite deployment.
  • PoC Objective: To demonstrate the feasibility of landing and reusing rocket boosters after space missions.
  • Implementation: SpaceX conducted proof-of-concept tests with prototype Falcon rockets to achieve successful booster landings.
  • Results: Iterative testing and refinement of landing procedures led to successful recoveries of Falcon rocket boosters.
  • Outcome: Successful PoC trials validated the concept of reusable rocket technology, leading to significant cost savings and increased efficiency in SpaceX’s space missions.

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.

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Our content and product recommendations are editorially independent. We may make money when you click links to our partners. Learn more in our  Editorial & Advertising Policy .

A Proof of Concept (POC) project begins when an organization starts a new or existing program. Usually, at the beginning of a large-scale effort, a POC should be a Testbed Project. A Testbed Project takes a smaller portion of the overall effort and contains it to see if it works with the company objectives.

Take, for example, a new financial system with multiple software components for each business area is in consideration. The company might create a small POC team with representative members from HR, Finance, IT, the solutions provider, and an executive sponsor. This team will be a separate entity dedicated to testing the software to see if it’s a good fit for the company.

A Proof of Concept project can also be created if a current project shows issues, is struggling to align with the corporate goals and vision, or is lagging in approach. Again, creating a small team of the appropriate players will expose the most complex areas in the project for testing.

Read more: Project Proposal Template & Examples

Why Implement a POC Project

Why should you implement a Proof of Concept project? A POC effort can work in any business or industry. Teams in finance, HR, sales, and marketing can all successfully use a Proof of Concept approach.

Many organizations make the mistake of trying to take on overly large programs that affect multiple departments of a company at once. Chunking a large program into smaller POC efforts — with an overall plan to complete — will save money, time, and aggravation.

Answer these questions first before beginning any strategic corporate initiative:

  • Does the project align with our company’s core business?
  • Is the program new on the market?
  • What division is asking for the system?
  • If there is an external vendor, what is their area of expertise?

Read More : Project Management Terms & Concepts to Know

How to Establish a Valuable POC Team

Determine the team structure. The POC Team should be relatively small. A good rule of thumb is 10 to 12 people. Determine who should be involved, and what, when, where, and how these people will be best utilized.

Limit participation to key stakeholders. Ensure that only the responsible business areas commit resources to the effort. While other regions of the company may want to be involved, the success of a POC depends on keeping the core team focused on the effort. Why? The focus of the POC is to determine whether the project should be adopted by other areas of an organization.

Always have a an executive sponsor. Why include an executive sponsor? Extensive efforts need someone to be a spokesperson that can communicate and help clear the way for the POC team. The organization’s leadership, especially in mission-critical rollouts, should be seen, heard, and supported by the team.

Keep the team independent. The POC team needs to focus its efforts on only the POC Project. If they are on other projects or have competing responsibilities, the POC will not be successful. Remember, a Proof of Concept Project is an encapsulated effort; a POC should not be or become a long-term exercise. The purpose is to determine if the project is viable for the organization.

Read More: What is Project Management? Definition, Types & Examples

How to Use the Results of a Proof of Concept Project

Understanding the importance and need for a POC Project will help an organization know if a more laborious or troubled project will work at scale. Creating a solid POC Team is vital for success, especially when it comes to the executive sponsor. The hardest part of a POC effort is ensuring the project meets the corporate goals.

If the POC team determines that the tested program isn’t a fit, consider a new approach or classify the effort as a sunk cost. Too many organizations start significant efforts and don’t realize it may be a bad idea. A POC project can help determine this success or failure early on, ultimately saving time and money. A Proof of Concept effort is an excellent tool for anyone responsible for corporate initiatives.

Read next: Establishing Meeting Cadence for Remote Project Teams

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business plan proof of concept

Every day, ideas for new software, new products, new web applications... emerge. But how many of these ideas are really viable? A minority. So before developing a project with little chance of success, it's best to study its feasibility. This is where the Proof of Concept comes in. So what is a Proof of Concept? What's in it for you? What are its limitations? And above all, how do you conduct a PoC? Find out the answers.

What is proof of concept (poc), definition of proof of concept.

Proof of Concept is a key methodology in project management . Particularly popular with Agile methods, it is used to verify the feasibility of a theory, concept or idea. PoC is therefore used right from the start of the project management process.

This method can be applied to all companies, whatever their sector of activity, size, level of maturity or project. One of the best-known examples of Proof of Concept concerns concept cars in the automotive sector. But beyond the launch of a new product, it is possible to apply this method to the reorganisation of a department, the construction of a business model, the development of a secure mobile application, and so on.

In all cases, the aim of the PoC is to identify whether or not a business opportunity exists. To do this, two key questions need to be answered:

  • Do customers (or the organisation) need this product/service?
  • Is it feasible and secure?

If the answer is yes to these two questions , it’s a GO. If not, it’s best to continue refining the project or developing another until the answer is yes. Thanks to this testing phase, project managers can validate or invalidate their initial hypotheses. It is preferable to abandon a project at the outset, rather than commit resources to a project that cannot be achieved.

Good to know: Proof of Concept is fully in tune with the times, when agility is increasingly essential to meet consumer demands.

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  • News for Mobilicom

Mobilicom and Airbus complete successful integration and flight proof-of-concept on Airbus Mid-Sized Jet-UAV for long-range operations

  • Mobilicom has expanded its offering and total addressable market (TAM) beyond small-sized drones into the mid-sized uncrewed aerial vehicle (UAV) market with its newly released MCU-70 & MCU-300 products
  • Major milestone delivering live HD video and broadband data from high-speed jet UAV over long range operations up to 100 km

Shoham, Israel, April 18, 2024 (GLOBE NEWSWIRE) --   Mobilicom Limited ( Nasdaq: MOB, MOBBW ), a provider of cybersecurity and robust solutions for drones and robotics, today announced that in collaboration with Airbus, it has successfully completed the flight proof-of-concept for high-speed jet UAV-to-ground livestreaming of high-definition (HD) video and broadband data. Mobilicom’s cybersecure long-range, high-speed communications systems were successfully integrated into Airbus’ Do-DT25 UAV, one of the top performing target drones in the world.

Mobilicom’s newly released MCU-70 aerial unit was installed on the Airbus jet UAV high-speed long-distance drone, which communicated with Mobilicom’s new MCU-300 ground unit under highly rigorous conditions, including complex high-speed maneuvers at up to 150 meters/second as far as 100 kilometers from the base station. Live, high-speed video has now been made possible by Mobilicom’s MCU-70 aerial unit and can enhance a drone’s performance and accuracy by providing real-time decision support data for human ground crews and digital processing systems.

The Mobilicom MCU-equipped Airbus Target Drones are designed to be used for military training purposes in battle scenarios that simulate various environments with different payloads. Airbus’ Target Systems have been used to train armed forces worldwide in over 3,500 missions.

“We believe that this is an important milestone in Mobilicom’s expansion strategy as we grow our market into mid-sized drones and jet UAVs to serve our growing customer base. We have demonstrated our new systems’ robust capacity to communicate HD video and high-speed data at long range with Airbus, one of the largest aeronautics and space companies in Europe and a worldwide leader,” said Mobilicom CEO and Founder Oren Elkayam. “The proof of concept marks a significant step forward in our end-to-end offering supporting our customers across mini, small and mid-sized platforms, including MESH networking solution for fleet and SWARM operations.”

About Mobilicom Mobilicom is a leading provider of cybersecure robust solutions for the rapidly growing defense and commercial drones and robotics market. Mobilicom’s large portfolio of field-proven technologies includes cybersecurity, software, hardware, and professional services that power, connect, guide, and secure drones and robotics. Through deployments across the globe with over 50 customers, including the world’s largest drone manufacturers, Mobilicom’s end-to-end solutions are used in mission-critical functions.

For investors, please use https://ir.mobilicom.com/ For company, please use www.mobilicom.com

Forward Looking Statements This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. For example, the Company is using forward-looking statements when it discusses its expansion strategy as it grows its market into mid-sized drones and jet UAVs to serve its growing customer base. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Mobilicom Limited’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Mobilicom Limited undertakes no duty to update such information except as required under applicable law.

For more information on Mobilicom, please contact:

Liad Gelfer Mobilicom Ltd [email protected]

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Play It Forward Program Triumphs at the Kravis Concept Plan Competition

Kravis Concept Plan Competition Winner

Play It Forward, a community-based sports program created by CGU alum Ben Daugherty (MA in Management, 2023), won this year’s Kravis Concept Plan Competition by a unanimous vote. Founded in 1990 and hosted annually by the Drucker School of Management, the Kravis Concept Plan Competition allows students and alumni of the Claremont Colleges to pitch their business ideas to a panel of experienced judges for a chance to win up to $10,000.

Inspired by the profound influence of his grandfather, a legendary high school basketball coach in Ohio, and his father, who coached him in basketball and guided him in developing the business, Daugherty founded Play It Forward in the hopes of expanding access to youth basketball coaching programs by employing former athletes to lead clinics in partnership with YMCAs and community centers nationwide.

“Hearing my grandfather’s former players tell me how much of an impact he had on their life really influenced me,” Daugherty said.  

Daugherty said his motivation for entering the Kravis competition stemmed from a desire for clarity and structure in his business approach. “I had a realization that my idea and game plan needed a little more clarity. I thought creating the concept plan would be a great way to organize my ideas for the business and get a clearer picture of what I was trying to accomplish.”

Though Daugherty won the competition by unanimous vote and was awarded the entire prize amount—not always a sure bet—there were significant challenges he had to overcome. Tight time limits during the pitch forced Daugherty to significantly shorten his presentation, allowing him to present only the core elements of his business plan. Key to his preparation was the guidance he received from Clinical Professor of Management,  Dr. Kristine Kawamura , who provided critical feedback on his concept plan and presentation. “Dr. K met with me prior to the competition to help me organize my presentation. She was incredibly encouraging and gave me the confidence that I wasn’t in over my head with my idea.”

The Kravis competition prize money will fund an increase in the coaching staff, enabling Play It Forward to double its clinic operations this fall. “The investment is going directly to paying coaches,” Daugherty said. “With this money, we now have the capacity to run twice the number of clinics as we previously could. Our team is so grateful for the investment and is so excited we now have double the capacity to grow this year. We want to have over 30 programs running this fall, which is a difficult but attainable goal in my opinion.”

Looking ahead, Daugherty said Play It Forward aims to be at the forefront of youth basketball, not just in terms of coaching but also in educating young athletes on essential psychological and social skills. “I hope to spend even more time trying to understand sports psychology, social emotional learning, and other youth development related concepts that we can implement across all of our events.”   

Daugherty’s success at the Kravis Concept Plan Competition highlights the importance of such platforms in nurturing the entrepreneurial ambitions of students and alumni of the Claremont Colleges. For those who may be considering their own ventures, Daugherty offers this piece of advice: “Do it! And be sure to ask for help from as many people as possible along the way.”  

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Majority of US couples do not have an estate plan, study finds

Ameriprise survey finds couples overwhelmingly tend to trust each other, but many have serious details to work out when it comes to retirement.

FOX Business' Ashley Webster talks to diners at The Villages in Florida about retirement after a Northwestern Mutual survey claims it will take $1.46M to retire comfortably.

Diners weigh in on retirement as new study shows what it would take to retire comfortably

FOX Business' Ashley Webster talks to diners at The Villages in Florida about retirement after a Northwestern Mutual survey claims it will take $1.46M to retire comfortably.

American investors in committed relationships overwhelmingly say they trust their partners and share the same retirement goals , but most have not put an estate plan in place, new data suggests.

Ameriprise Financial's "Couples, Money & Retirement" report released Wednesday found 95% of couples agree they are honest and transparent with one another when it comes to their finances, and 91% said they share the same financial values. 

401k pension retirement

A new survey by Ameriprise found most American investors in committed relationships have some significant details to work out with their partners when it comes to retirement. (Annette Riedl/picture alliance via Getty Images / Getty Images)

But many have not reached a consensus on a number of emotionally-charged decisions about money .

The survey, which polled more than 1,500 American couples with $100,000 or more in investable assets, focused primarily on those between the ages of 45-70 who have retired within the last decade or plan to do so in the next 10 years.

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While it found that 93% of couples share similar goals for retirement and agree on when to retire, 24% of respondents said they have not come to an agreement on how much money they will need to save or how much they should spend on children and grandchildren, both today and as part of their estates. 

senior couple laptop

Most couples do not have an estate plan in place, according to a new study by Ameriprise. (iStock / iStock)

In fact, more than half (52%) of couples surveyed said they have not yet set up an estate plan.

Marcy Keckler, senior vice president of financial advice strategy at Ameriprise Financial and a certified financial planner, offers the following advice for couples who still need to set up an estate plan:

1. Don't be intimidated by the concept of estate planning

"Estate planning is for everyone, no matter their wealth or complexity of their financial situation ," Keckler told FOX Business. "At some point, all of us will need an estate plan."

She explained that, at its core, estate planning is about making decisions about what you want to happen after you die or in the event you’re incapacitated and can’t make health-related or financial decisions on your own, even temporarily.

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2. Engage professionals

"A qualified financial adviser and estate planning attorney can help you initiate important, yet often emotional conversations and ensure you have decisions documented to cover a variety of potential scenarios that may arise,' Keckler said.

"Guidance from professionals can ensure your wishes for the legacy you want to leave your heirs and other loved ones are carried out."

A financial advisor speaks with a woman and man.

Financial advisers can provide expert-led guidance for individuals or couples who have complex finances. (iStock / iStock)

Keckler recommends selecting professionals willing to collaborate, noting that one of the biggest mistakes couples can make is creating a will that specifies beneficiaries and then forgetting to update their accounts to actually identify the correct beneficiary. 

She added that financial advisers and attorneys can work together to help ensure you’ve taken all the steps necessary to have your plan executed according to your wishes.

3. Once you complete your estate plan, be proud of yourself

" Estate planning is an important part of protecting your family and financial legacy," Keckler said. "It’s a big accomplishment that should be celebrated once it’s completed."

She recommends ensuring you know where the original documents and any physical or digital copies are, so you can refer to them in the event they become needed. 

"If you have a doctor or hospital of choice, send them a copy, so they can keep it on file," Keckler suggested. "This can save valuable time and stress you or a loved one would otherwise spend trying to find them in an emergency."

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4. Revisit your estate plan at least every five years, and more frequently if a big life event happens

"Estate plans need to be updated as your life evolves to ensure they reflect your wishes," Keckler added. "Moments in life such as the birth of a child or grandchild, major shifts in income, a divorce, acquisition of new property and a child reaching the age of 18 are a few examples of when your estate plan may need to be revisited."

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COMMENTS

  1. 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.

  2. 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.

  3. 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 ...

  4. How to write a proof of concept (with 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 ...

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

    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.

  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. 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 ...

  9. 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 the proof of concept.

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

    PoC. Proof of concept (POC) is data acquired from a pilot project that is carried out to show the viability of a project plan, business strategy, or product proposal. Clinical trials, for instance, are performed to acquire proof of concept for a finished product in the drug development industry.

  11. Mastering Proof of Concept (PoC) in Business: Your Ultimate Guide

    Understanding the Power of Proof of Concept (PoC) in Business. Technology plays a pivotal role in determining the success of a company. To stay ahead of the competition, organizations must adopt new technologies and ideas. ... Data-Driven Approach: Develop a plan for data collection and analysis. Know how you'll gather the right data to ...

  12. How to Create a Proof of Concept in 2024

    Step 3: Create a prototype and test it. Once the team has arrived at a feasible idea, they should create a prototype based on the decided requirements, features, and solutions. The project team ...

  13. 10 Proof of Concept Templates to Validate Project Feasibility

    A proof of concept template is a path toward building a persuasive narrative that wins over stakeholders, de-risking your product, project, or business plan in the process. So, instead of wasting hours on what facets to demonstrate to your stakeholders, you can simply fill out the document to validate your hypothesis.

  14. Proof of Concept (POC): Definition, Steps and Examples

    To equip you with a solid plan, we've put together a simple proof of concept template. This proof of concept checklist can serve as a roadmap, guiding you through the key checkpoints and helping you test the waters in an organized manner. ... Here's another great example of proof of concept in business. Back in 2013, Melanie Perkins, an ...

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

    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 ...

  16. 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 ...

  17. 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 ...

  18. 7 Proof of Concept Examples from Real Startups

    Proof of concept goals. 7 proof of concept examples from real startups. 1. Test the waters with an explainer video (Dropbox) 2. Build demand before you have a product (SwipeWell) 3. Validate an idea through customer interviews (Drip) 4.

  19. 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.

  20. Proof of Concept And Why It Matters In Business

    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 ...

  21. What is Proof of Concept (POC)?

    A Proof of Concept (POC) project begins when an organization starts a new or existing program. Usually, at the beginning of a large-scale effort, a POC should be a Testbed Project. A Testbed Project takes a smaller portion of the overall effort and contains it to see if it works with the company objectives. Take, for example, a new financial ...

  22. 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 ...

  23. 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.

  24. Proof of Concept: What is it? Why is it important?

    Proof of Concept is a key methodology in project management. Particularly popular with Agile methods, it is used to verify the feasibility of a theory, concept or idea. PoC is therefore used right from the start of the project management process. This method can be applied to all companies, whatever their sector of activity, size, level of ...

  25. Mobilicom and Airbus complete successful integration and flight proof

    "The proof of concept marks a significant step forward in our end-to-end offering supporting our customers across mini, small and mid-sized platforms, including MESH networking solution for ...

  26. Tokenized RWA Firm PV01 Completes Proof-of-Concept With Bond Issuance

    PV01 completed its proof-of-concept issuance of a tokenized bond, a U.S. treasury bill, with market makers B2C2, BlockTower Capital and Keyrock investing. Tokenization of real-world assets like ...

  27. Play It Forward Program Triumphs at the Kravis Concept Plan Competition

    Play It Forward, a community-based sports program created by CGU alum Ben Daugherty (MA in Management, 2023), won this year's Kravis Concept Plan Competition by a unanimous vote. Founded in 1990 and hosted annually by the Drucker School of Management, the Kravis Concept Plan Competition allows students and alumni of the Claremont Colleges to pitch their business ideas to a panel of ...

  28. Majority of US couples do not have an estate plan, study finds

    In fact, more than half (52%) of couples surveyed said they have not yet set up an estate plan. Marcy Keckler, senior vice president of financial advice strategy at Ameriprise Financial and a ...

  29. Indoor pickleball concept coming to Jacksonville

    PickleRage will open a corporate-operated club in Jacksonville. PickleRage, an indoor pickleball club franchisor, announced its plans to open a corporate-operated club in Jacksonville this summer ...