How To Test Your New Product or Product Idea

business_ideas

Continuation from Friday…….(How To Build A Minimally Viable Product)

Once you campaign is up running you should track it very carefuly, adjusting it along the way. When optimized, it will give you an idea if your business can be successful and/or profitable. If it is, move on to full scale business development. If it is not, keep one important thing in mind. Oftentimes, it takes months of constantly adjusting your product offerings and marketing campaigns before you hit the pay dirt. A lot of people tend to give up right before that happens. DO NOT abandon your project at this state, until and unless, you are 100% sure that you have exhausted all possible options.

Product Centric Business:

If you have a prototype product you would like to sell, the time to develop it into a working concept is now. Attempt to create a working version, no matter the cost. If nothing else, this process will give you a full understanding of what it takes and how much it will cost to put your product together. Once completed, attempt to test it in every possible way in order to determine what types of failure(s) your product is susceptible to. If not much develops, try to understand if you product can be manufactured in large numbers and at a price that will be accepted by its eventual customer base. A price that will also yield a profit for you.

If you are lucky enough to successfully get to this point, it is time to roll up your sleeves and start the sales cycle. Yet, unless your product is absolutely amazing or unique, don’t try to hit the ball out of the park. That means you shouldn’t approach Walmart or Costco in an attempt to sell 10 Million units. It doesn’t work that way. Most large retailers and distributors won’t even bother talking to new merchants such as yourself. In majority of the cases, they will require a multi-year track record and an income statement showing millions of revenue before they will even bother to let you into their parking lot.

In other words, start small. I would suggest the following multi-tier approach…..

Develop your own product website and sell direct. You can follow the steps outlined in the “Online Business” section above or develop your own store in a matter of minutes. There many websites services out there that can help you do just that. To the point where you can have your own store, shopping cart and credit card processing service in a matter of minutes. Shopify.com is one of the most popular services in the space.
Open your own storefronts on Amazon.com and Ebay.com. While it will take you a few hours to set them up, both platforms will bring hundreds of millions of potential buyers to your product. If nothing else, it will give you an idea if your product has mass appeal.
Depending on what your product is, attempt to find physical retailers in your city that carry similar product lines. Mom and pop shops would be your best bets as large corporate chains are unlikely to place your products in their stores. Approach them and ask if they would be willing to attempt to sell your product. In order to see if there is a demand. A major selling point for you might be leaving you merchandise behind on consignment basis as opposed to trying to sell it outright. It would be great way to develop initial relationships with local merchants as many more businesses will take a risk on such an offer.
If your product permits, try selling it at local fairs, swap meets and flea markets. Again, it will help you determine if your product can be sold and/or if it has mass appeal.

Once you have completed all of the steps above, you will have a fairly good idea if your product is ready for mass market. If it is, move into full scale business development model. If you are still not sure or if the product is not performing very well, don’t give up. Keep playing around with your product and sales channels until all options are exhausted.

To Be Continued Tomorrow…...(Why Am I Seeing This On A Financial Website?)