Research the idea; determine FACTS on how big an idea this is. Who will want it? What are buyers currently using that this item will replace? WHY will buyers make the change? How much will they be willing to pay for this new item? How many people will have interest? Will they buy it again & again …. or it it a one time purchase so you will need to market again and again to get new customers?
by Alice Nadin, Counselor
Look to the trade that will carry this product. Who are they? How do they make decisions on what to carry in their stores? Will you be able to direct sell them or do you need to go through a distributor/wholesaler/broker? Become an expert in the distribution channel your product will go through.AND what are your costs? Materials, rent, employees, marketing and so on. Will you make it or contract to have it made? or are you trying to sell the idea? Should you patent it? Trademark it? Are you prepared to monitor and defend your idea?
Work on all those questions and many more until you have FACTS to back up your idea then determine next steps. Many of your answers will be based on assumptions but use quantified statistics to base those assumptions. For example, you may say – all males between 18 & 24 yr old, living in major metro areas will want this product. Determine statistically how many of this target there are. Overlay that assumption with other facts.
Lastly look at the competition and what this product will replace or improve on. Learn their 3-5 year sales trends and make assumptions on how you will capture that business. AND make assumptions they what actions they will take with your entry.
Pull all of this together in a business plan. A plan will step by step guide you though all the areas you need to know.