Stepping into product creation and production is the goal of many entrepreneurs. When you have an idea, the next natural impulse is to turn the idea into form but there are several other stages of the process you may want to go through first before you invest too much time and resources into actually producing the product. Without some testing and market research, you may find yourself continually going back to the drawing board to make a product that will actually sell. You may not have the resources available to conduct more thorough research but here are a few testing strategies you can use to get market validation for your product or service whether you’ve invented a widget or you’re a consultant with a process to offer. When you’ve gotten a YES in these areas, then you’ll know it’s time to proceed to the next step.
1. Talk to your customers AND end users. These two groups are not the same and usually represent the retail buyer and their customer or your distributor and the person who buys from them. For instance, you may interview Home Depot customers who would buy your product if it was available but if the store’s buyer doesn’t get it, he won’t place an order from you. This also applies to online marketing when you’re working with affiliates. You want buy-in from BOTH groups.
2. Know where your product will sell first. Your product may look different on a store shelf, selling online, selling in Costco or bundled with another product. Discover which distribution channel will be most lucrative for you first and then make a product that will suit that channel. I knew someone that invested his first round of capital developing a product for Lowe’s Home Improvement only to find that the packaging was totally inappropriate and the buyers weren’t interested in carrying the product but he hadn’t taken the time to discuss it with them. It would have been better suited as a direct response product and sold via infomercial to start.
3. Test your price points. Karen Neuberger makes a famous line of loungewear for women. Her primary market is high-end Nordstrom’s but her outfits also sell in lower-end Marshalls stores. Even though the products may look very similar, there are very distinct quality differences between the two. The quality of the product made is a reflection of the price point that is most suitable for that particular market.
4. Pre-sell whenever possible. There is nothing that provides validation as much as early traction—knowing there are people willing to pay for your product. You can pre-sell by selling small orders or pre-sell the idea and then make the product later.
5. Be sure you can fulfill orders in a reasonable time and with minimum cost . You may have a great idea but the costs related to getting the product to the customer are greater then any demand would be so it may not make sense to even produce or promise the product. This is also true of a service when your time is involved. Regardless, make sure you know you can deliver on your promise before you commit to producing your product. For instance, think of the logistics and resources involved for FedEx or Super Shuttle Transportation to deliver on their brand promises of rapid transportation. A dentist who promises rapid response for walk-ins and then is faced with 500 new patients walking through the door will need to rethink his/her fulfillment and distribution model.
To schedule your complimentary “Passion To Prosperity Strategy Session”, contact Maria Simone by sending an email to admin@passion2prosperity.com. You may reprint this article in its entirety with author's contact and bio information.
Wednesday, June 30, 2010
Friday, June 11, 2010
Prospering With Systems In Your Business
Your business infrastructure is the series of systems, strategies, processes, and automated activities that correctly combined will allow any small business to safely grow to a 6, 7 or even an 8 figure business. Your business infrastructure is not unlike your body’s skeleton. Without your skeleton (I’ll keep this G-rated), things would get pretty messy and we wouldn’t have the ability to be very mobile let alone GROW. As they say in pop culture, you’d be a “hot mess” without it. Solopreneurs and small businesses experience this all too often when they wear too many hats and literally become the bottleneck of their business. Even with the realization they’re severely limiting their growth, it may seem difficult to break out of this exhausting cycle. Here are some action steps you can take to create more structure, experience more freedom and experience more prosperity in your business.
1. Remember it’s a BUSINESS not a BAKE SALE. You want your business to take on an energetic life of its own and that will only happen if you allow it to develop its own culture and brand that’s independent of you so it has the chance to be a formidable entity that serves the greater good. The objective is to lead the process responsibly, not treat it like a part time hobby, take anything too personally or be too controlling with it.
2.Define what the most productive activities are in your business. These would typically be specific revenue generating activities OR if you’re in start-up mode, raising capital. Start doing more of THOSE and less of the busy work
3.Define and document all pertinent tasks in your business. If you’re the ”chief, cook and bottle washer”, it’s going to be difficult to delegate unless you’ve taken some time to document all that you do so that others can follow in your footsteps.
4.Automate your customer service and marketing activities. If you’re going to invest time and money attracting new customers, the last thing you want to do is ignore them after the sale. Consider using an automated marketing tool that will manage your customer intake, product sales, track referrals, and will send preprogrammed reminder and marketing messages to continually engage prospects and customers. I’ve been using http://www.prosperitycart.com/ for several years in multiple businesses and it has been responsible for bringing in more revenue then any other tool in my business.
5.Avoid doing an activity more than once. If you have activities that must be carried out repetitively and are not the best use of your time, then make plans to automate, delegate or package them in a way so you no longer have to spend time doing it.
6.Create timelines and schedules that have beginnings and endings. Structure your days so that you’re working on manageable tasks, stick to realistic timelines, and create ways to measure completions for yourself and your team.
7.Institute basic Quality Control standards. How do you measure if something is working or acceptable in your business? Especially with regards to safety, training, productivity, profitability or customer satisfaction.
In my 30 Day Revenue Makeover Program (http://30dayrevenue.com), you’re guided through a series of strategies similar to these that help you create a more solid infrastructure in your business and thus improving your revenue potential. You may reprint this article in its entirety with author's contact and bio information.
1. Remember it’s a BUSINESS not a BAKE SALE. You want your business to take on an energetic life of its own and that will only happen if you allow it to develop its own culture and brand that’s independent of you so it has the chance to be a formidable entity that serves the greater good. The objective is to lead the process responsibly, not treat it like a part time hobby, take anything too personally or be too controlling with it.
2.Define what the most productive activities are in your business. These would typically be specific revenue generating activities OR if you’re in start-up mode, raising capital. Start doing more of THOSE and less of the busy work
3.Define and document all pertinent tasks in your business. If you’re the ”chief, cook and bottle washer”, it’s going to be difficult to delegate unless you’ve taken some time to document all that you do so that others can follow in your footsteps.
4.Automate your customer service and marketing activities. If you’re going to invest time and money attracting new customers, the last thing you want to do is ignore them after the sale. Consider using an automated marketing tool that will manage your customer intake, product sales, track referrals, and will send preprogrammed reminder and marketing messages to continually engage prospects and customers. I’ve been using http://www.prosperitycart.com/ for several years in multiple businesses and it has been responsible for bringing in more revenue then any other tool in my business.
5.Avoid doing an activity more than once. If you have activities that must be carried out repetitively and are not the best use of your time, then make plans to automate, delegate or package them in a way so you no longer have to spend time doing it.
6.Create timelines and schedules that have beginnings and endings. Structure your days so that you’re working on manageable tasks, stick to realistic timelines, and create ways to measure completions for yourself and your team.
7.Institute basic Quality Control standards. How do you measure if something is working or acceptable in your business? Especially with regards to safety, training, productivity, profitability or customer satisfaction.
In my 30 Day Revenue Makeover Program (http://30dayrevenue.com), you’re guided through a series of strategies similar to these that help you create a more solid infrastructure in your business and thus improving your revenue potential. You may reprint this article in its entirety with author's contact and bio information.
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