Don't Launch a New Product Before Answering These Five Questions

Clarity In Business

I have seen many emerging companies as they've attempted to become successful and I have noticed a core problem that keeps a small business owner captive in the thick fog. The problem is just the clarification of direction. Lacking clarity brings on numerous issues that range from investors not understanding what you do to customers not "getting" what you offer.

In order to increase clarity in your company, you must internalize your answers to the 5 following questions. Not knowing the answer to any of questions will be a huge obstacle and will hinder your progression both in sales and company management.

1.<b>What Is The Problem You Desire to Be the Solution For?</b> Remember that I did not ask, "What is the problem you <i>are</i> the solution to?" Always begin with asking yourself, "What do I wish to be the solution to?" This question appears straightforward enough; but, you would be astonished at the number of individuals in this business that fail to answer this question and how many are not selling to the market they desire to sell to.

If you can't answer the question your customers and potential investors will be confused about what it is that your business actually does. When you are launching a new business, or product, you ought to ask this question up front, and not after your products have been manufactured.

Many times we have observed as someone finish creating a new product only to wonder, "Now that we have an ultra-amazing widget, I wonder if there are consumers who have a need that our widget can fill?"

2.<b>Which Group Of People Have The Problem?</b> Before you introduce a new company or product, be sure you understand who is going to buy your products. Looking for a market after the fact is a risky way to do things. Think about doing surveys to comprehend the interest level of your proposed audience.

3.<b>How Many People Are Dealing With This Particular Problem?</b> In the past I have consulted a number of companies that truly had no conception of what size their market was. This is easily and most frequently seen in small businesses. Typically those who launch small businesses in community markets don't put forth the effort to plan appropriately to understand the market they want to join. Take the time to find out how large your market is.

4.<b>What Sort of Prices Can the People In Your Market Afford To Pay?</b> It isn't enough to just have a solution to a problem that a lot of people have. The people have to be able to afford your solution. If the people can't afford it, they won't buy it and your product sales will take a severe blow.

The methods you will use in pricing your product are different depending on your market. If, for example, you're selling a consumer product, and you are dealing with middle-class Americans in a mass market, your product may have to be somewhere around $10 for no resistance to $100 for some spending resistance. Above $100 and you'll start to disturb the family's monthly budget. When you put your customers in a position that they have to make a 'serious' financial decision, you amplify the skill level necessary to sell your product and extend the selling process�sometimes resulting in the downfall of your company.

5.<b>What is Your Solution?</b> The product offering is the moment of truth. Don't hesitate to adjust the type of product you offer to create a suitable solution. Nearly all of us act like parents when it comes to decisions about our products. Start acting as if you were an investor. Build a solution that will actually sell, offer immense value to the purchaser and make you an honest profit in the process. Don't get so emotionally fond of your products that you refuse to alter your offering to fill the needs and wants of your market.

As you follow this pattern of building a business you will meet with a higher level of success.

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