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How to Add a New Product or Service to Your Business!

  • By Lauri Paxton
  • 14 May, 2015
If you are a business owner you already realize some of the benefits of being your own boss. But with those benefits also come the large responsibilities of being profitable and successful. It is often a fun and exciting feeling when you come up with a new idea for a product to sell or a service to offer, knowing and feeling that it could be the next great thing that sets you apart from other businesses. Now before you go and launch a new line, or provide a new service it’s time to be a business owner, take a step back and analyze this hip new idea and decide if it is really the direction in which you want to move.
It all starts with a solid plan.Now your new idea may in fact be the next step for your business, but you need to evaluate it from all sides. Doing this will help to prevent your new idea from potentially damaging your reputation or simply moving forward with an idea that you will soon look back on and realize that it might not have been the right step. So once you have found the next best thing for you and your business, take some time to step back, put on the owners hat and evaluate the idea answering the following questions to help ensure your success.
  1. Will the new product or service help to improve the reputation of your business?
    Does the new idea or product help to improve and flow in naturally with your current business and build upon your brand? Be clear and descriptive as to what the new idea provides. It is often useful to explain your potential new product or service to someone who has no knowledge of it. Determine if they see the value and benefits of the new product or service.
  2. How easy or difficult will the new product or service be to add to your existing products and services?
    A big part of launching a new product or service is having the capital to be able to properly provide it. That’s where having strong financials to make informed decisions come into play. Will you need money for extra staff or supplies to produce the product? If so, where that money will come from?
  3. How easy will the new product or service be to sell?
    Is the new product or service something that you will be able to sell to your current customer base or will your sales force have to find new clients? If not, you and or your sales team will need to come up with a sales strategy and budget marketing dollars toward marketing and sales support.
  4. Will your new product affect sales of your current products and services?
    It is important to analyze if your customers may choose to purchase this service or product over your current products and services. Do your homework to make sure that the profit margins on this new product and service will be as profitable if sales shift from current products and services.
  5. How profitable will the product be in both the short and long term?
    As you probably know at this point, many small business are not profitable their first or even second year. Take the time to look at the start-up costs and come up with a projected profit for the first year and what you would project for future years.
Being able to answer these questions will not guarantee success, as it is impossible to know exactly how your new idea will be accepted across your client base. It will however help you to step out of the shoes of the excited inventor and into the shoes of a more objective owner who is looking at the costs, ability to take it to market and the financial success to your business.
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