Demystifying Proof of Concept: A Beginner's Guide

What is a Proof of Concept (POC)?

Proof of Concept or POC is a principle that states that a certain concept or theory has real-life application. POC is proof that a project or a product will come up to the expectations of the customer and is justified for the cost needed to support and develop it.

POC is usually needed by investors who need proper proof and documentation of a startup. POC is a mandatory document that investors generally ask for to maximize the return on investment. For example, you are planning to create a game that you think will go viral. You will create a POC or proof of concept. It is the basic version of the game that you would release to a small team in your office to test and check. If the small group approves the game, you can decide to launch it online. Otherwise, you can still make changes and work on the improvement areas of that concept. This proof of concept example demonstrates the potential of the concept.

Benefits of Using Proof of Concept

There are many important benefits of POC in various domains : 

Helps to Check your Idea Before Launching it on a Larger Scale 

Proof of Concept helps to check if your idea is working and is worth launching on a huge scale. Presenting your idea to a small group and examining the reactions is the most budget-friendly and easiest testing technique.

Helps Build Confidence in Investors

Investing in a project can be worthy as well as risky at the same time. You never know whether a particular startup will hit the marketplace or not. By generating a proof of concept, Investors are more likely to trust your idea as it briefly outlines the concepts and results of the startup and demonstrates the product's benefits to the Investors. 

Identify Problems at an Early Stage 

When a POC is issued, two possible outcomes can take place: 

• either the project will be successful and ready to be launched at a larger scale
• or the project might have some errors and glitches in it. 

When problems are detected at an early stage, there is room for improvement, and the risk factor can be mitigated. 

Steps to Write a Proof of Concept

Follow the below-mentioned steps to write an effective proof of concept: 

1. Evaluate the Need for Products in the Market

The first step of writing a proof of concept is determining the pain points of customers who need this product. Focus on the problems and issues of the target audience and evaluate how your product can solve their needs. 

2. Create Objectives

Create Objectives for your project. Show how you can implement an action plan to achieve the goals and objectives of your project. 

3. Create an Action Plan

Once you know your objectives, create an action plan to help you achieve them. You can collaborate with different team members for effective ideas and task allocation. Share this plan with your team and assign the duties and responsibilities to every individual.

4. Create a Sample and Test 

Create an illustration of your project and test it on a small group of people. If the project seems fine and without any particular errors, it is ready to be launched on a large scale. If significant errors are found, it is a sign to check and test your project again. 

5. Ask for Feedback

Collect feedback from the group of people on whom you have tested your project. Work on those feedback and recommendations and alter your project accordingly. 

6. Present to the Investors

Work on the received feedback and prepare a presentation for the investors. Educate them about the project and how your product is a solution for fulfilling the needs of customers out there. Gain their trust so that they can confidently invest in your project. 

Proof of Concept Examples

There are many real-life proof of concept examples from the companies that are working well today. We will consider the example of Dropbox. 

Whenever it comes to proof of concept, no one thinks to create it in a video format. But Dropbox did it, and that's the secret to its success today. 

Dropbox's proof of concept, "Test the waters with an explainer video," was successful in relating to the target audience. Their objective was to answer, "Does this solution relate to people?"

And it was successful. The video, showing the features of Dropbox, went viral on the internet, and the sign-ups for the app increased. This was all possible because of the POC video made by them.

Proof of Concept vs. Prototype

A Proof of concept is a test demonstration of how a particular product will work to solve the problems of users. In contrast, a Prototype is a practical illustration of a product, which gives an overview of its real-world applications. 

Conclusion

Proof of concept is an important tool that helps investors and founders equally. A startup can achieve valuable insights into how their product will work in the marketplace by setting up clear objectives, creating an efficient action plan and working on feedback. 

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FAQs

1. What does POC mean at work?

POC at work means a small-scale test conducted to verify whether a product is effective. 

2. Is POC part of a project?

Yes, POC is a stage of a project. It best illustrates how the target audience will perceive your project. 

3. How do you write a project POC?

To write an effective proof of concept, clearly define your objectives, justify a target audience, create an action plan, implement the plan, test your project on a small scale and ask for feedback or recommendations. The last step involves presenting your project to the investors for final approval.

4. What is an example of POC?

Proof of concept examples can include a basic version of a mobile app you decide to launch online.