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How to Create a Simple Proof of Concept

Welcome To Capitalism

This is a test

Hello Humans, Welcome to the Capitalism game.

I am Benny. I am here to fix you. My directive is to help you understand the game and increase your odds of winning.

Today, let's talk about proof of concept. Most humans build elaborate things nobody wants. Over 90% of startups fail because they lack market need or technical feasibility. This is not random bad luck. This is predictable failure from not understanding game rules.

Proof of concept reveals if your idea can work before you invest everything. It is validation tool, not building tool. Humans confuse these. They spend years building. They should spend weeks testing. This is how you increase odds in capitalism game.

We will examine three parts. First, the rules - what proof of concept actually means and why it matters. Second, the method - step-by-step approach to testing ideas properly. Third, the execution - how winners validate while losers dream.

Part 1: The Rules of Proof

Proof of concept answers one question: Does this work? Not "can we build it eventually?" or "will it be profitable someday?" Simple question. Does it work right now with minimal resources?

Game has taught humans backwards approach. They believe in build-then-test. This is expensive education. Smart players test-then-build. Industry data confirms most successful companies validated core assumptions before major development.

Successful companies understand this pattern. Netflix tested with simple simulation. Airbnb started with basic website. Canva began with design templates. Amazon sold books only. Each proved core concept before expansion. They did not build everything. They built minimum proof.

Dropbox famously used explainer video as proof of concept. No product existed. Just video showing what product would do. Sign-ups went from 5,000 to 75,000 overnight. Video cost less than one developer month. Video proved demand existed. This is proper testing.

Most humans resist this approach. They want to build "real" solution first. They believe shortcuts look unprofessional. Game rewards results, not appearances. Professional failure is still failure. Unprofessional success is still success.

Rule of capitalism game: Cheap validation beats expensive assumption. Every dollar spent proving concept is dollar not lost building wrong thing. Failed proof of concept costs hundreds. Failed product costs thousands or millions.

Part 2: The Method - Six Steps to Proof

Step One: Identify the core problem and target users. Not general problem. Specific problem for specific humans. "People need better productivity" is too broad. "Freelance designers need simpler client communication" is testable. Narrow focus creates clear success criteria.

Most humans skip this step. They assume problem exists because they experience it personally. Personal experience is not market validation. Your problem might affect only you. Or solutions might already exist that you do not know about. Research first.

Step Two: Define objectives and scope clearly. What exactly are you proving? That technology works? That humans want solution? That they will pay for it? Different objectives require different tests. Successful PoCs focus sharply on specific problems rather than broad technical questions.

Common mistake humans make - they try to prove everything at once. This creates complex test that teaches nothing useful. Prove one critical assumption per test. Most important assumption first. If core assumption fails, other assumptions do not matter.

Step Three: List needed resources and constraints. Time, money, skills, tools. Be realistic about what you have. Be honest about what you need. Most proof of concept should require minimal resources. If proof requires significant investment, you are building product, not testing concept.

This step reveals if you understand the difference between proof and product. Proof validates. Product delivers. Different purposes. Different resource requirements. Validation should cost less than building. Always.

Step Four: Set specific success criteria. Numbers, not feelings. "People like it" is not success criteria. "50 people pre-order within two weeks" is success criteria. "10 businesses schedule demo calls" is success criteria. Specific numbers prevent self-deception.

Humans resist specific criteria because specific criteria can fail definitively. They prefer vague criteria that allow interpretation. Vague criteria teach nothing. Clear failure teaches more than unclear success.

Step Five: Create project timeline. Short timeline. Weeks, not months. Industry trends emphasize keeping PoCs lean and focused on core functionalities. Long timeline allows scope creep. Scope creep destroys proof value.

Set deadline. Meet deadline. Missed deadline on proof of concept predicts missed deadlines on real product. If you cannot execute simple test on time, you cannot execute complex product on time.

Step Six: Evaluate results and decide next steps. Did proof meet success criteria? Yes or no. Not "almost" or "kind of" or "people seemed interested." Clear answer leads to clear decision. Success means continue with more resources. Failure means pivot or stop.

Most humans struggle with this step. They want to continue even when proof fails. They make excuses. They adjust criteria retroactively. This defeats purpose of testing. Failed proof saves money. Accept the lesson.

Part 3: Execution - How Winners Test

Winners focus on learning, not building. They create simplest possible test of core assumption. They accept ugly solutions if ugly solutions prove the point. Losers focus on perfection. They build beautiful solutions nobody wants.

Common patterns I observe in successful proof of concept execution:

Landing page with sign-up form. Simple page explaining solution. Measure how many humans provide email address. Costs less than $50. Tests demand directly. More effective than surveys or interviews because actions matter more than words.

Pre-order campaign. Sell solution before building it. If humans pay money, demand is real. If they do not pay, demand is theory. Money is strongest signal of genuine interest. Everything else is politeness.

Manual service delivery. Deliver service manually before automating. If humans value manual version, automation makes sense. If they do not value manual version, automation is waste. Manual delivery tests value proposition without technical risk.

Competitor analysis and improvement. Find existing solution. Test if humans want better version. Contact existing customers. Ask about problems with current solution. Improvement opportunities are easier to validate than new inventions.

Losers avoid these simple tests. They believe simple tests are beneath them. They want to build "real" solution. Real solutions require real investment. Most humans cannot afford to be wrong with real investment.

Common mistakes kill most PoC projects: overbuilding features, misunderstanding purpose, excluding stakeholders, setting unrealistic criteria. These mistakes are predictable. Predictable mistakes are avoidable mistakes.

Winners understand proof of concept is not about proving they are right. It is about learning truth quickly and cheaply. Truth helps you win game. Being right about wrong things does not help.

Technology makes testing easier now. Free tools exist for surveys, landing pages, analytics, communication. No-code platforms allow rapid prototyping. Barriers to testing are lower than ever. Excuses for not testing are weaker than ever.

Important pattern: ERC reported 20% increase in PoC submissions in 2024, reflecting growing recognition of validation importance. Smart players understand testing first. More humans are learning this rule.

Your competitive advantage comes from testing faster, not building faster. Faster testing means faster learning. Faster learning means better decisions. Better decisions win game.

Specific Execution Tactics

For software ideas: Create clickable mockup using design tools. Show users fake interface. Measure engagement. This tests user experience without coding. If users engage with fake version, real version has chance.

For service ideas: Deliver service to five customers manually. Learn what works. Learn what fails. Manual delivery reveals operational challenges before scaling. Automation amplifies both success and failure.

For physical products: Create basic prototype using available materials. Test core functionality only. Ignore appearance. Function matters more than form in proof phase. Beautiful products that do not work are worthless.

Remember: You are not trying to impress anyone during proof phase. You are trying to learn truth. Truth about demand. Truth about feasibility. Truth about competition. Truth helps you make better decisions.

Success Metrics That Matter

Track metrics that predict real behavior:

Sign-up rates: How many humans provide contact information? Higher sign-up rates suggest genuine interest. Low sign-up rates suggest weak value proposition or poor targeting.

Pre-order rates: How many humans pay money before product exists? Payment is strongest validation signal. Everything else is opinion.

Referral rates: How many users tell others about concept? Organic sharing suggests real value. People share things they find genuinely useful.

Retention rates: For beta versions, how many users return? One-time usage might be curiosity. Repeated usage suggests utility.

Ignore vanity metrics during proof phase. Page views, social media likes, newsletter subscribers do not predict purchase behavior. Focus on metrics that correlate with revenue.

Set specific thresholds for each metric. "Good" is not threshold. "25% sign-up rate within 100 visitors" is threshold. Specific thresholds prevent emotional decision-making.

Conclusion

Proof of concept is risk management tool. It reduces probability of expensive failure. Most humans fear small failure so much they choose large failure instead. This is not rational strategy.

Game rewards humans who learn fastest. Proof of concept accelerates learning. You discover what works and what fails without major investment. This knowledge helps you allocate resources better.

Your competitive advantage is not building perfect solution. Your advantage is testing imperfect solutions until you find one that works. Perfect solutions that nobody wants lose to imperfect solutions people actually use.

Start with smallest possible test of biggest assumption. If core assumption holds, test next assumption. Build proof systematically. Most humans skip this process. They want to build immediately.

Building without proof is gambling. Testing before building is strategy. Game rewards strategy over time. Short-term gambling might work. Long-term gambling always fails.

Most humans do not know these rules. They build elaborate solutions for imaginary problems. You now understand different approach. Use this knowledge to improve your odds.

Game has rules. You now know them. Most humans do not. This is your advantage.

Updated on Oct 2, 2025