THE PRODUCT MEETS A NEED
When you run a business you are occasionally presented with products and services that claim to add value to your business and increase your revenue potential. You have to know how to handle these situations as business owner and make sound decisions
Sometimes these situations are pressurised and you have to make a quick assessment of a product. That’s why it’s best to have strategy in place beforehand. If you’re caught off guard ask yourself whether the product meets the needs of either your customers or your business.
THE OPPORTUNITY WORKS AT YOUR LOCATION
There may be an excellent product or service on offer but the question is, does it work at your location? Many businesses exist within a local vacuum. What works there may not work elsewhere and vice versa. The trick is to understand the present mood within your target community.
Once again there is a chance you will be caught off guard with an opportunity when it’s presented. You don’t want these situations to be guesswork necessarily, so the best thing to do is to gather as much data as possible, prior to the event. Conduct regular market research to gain a strong idea of your target audience needs.
IT ADDS VALUE TO YOUR BUSINESS
Does this product or service add value to your business? And is that value direct or indirect. Value might be in the form of increases in revenue from a profitable product, but equally it could be a boost to reputation which also qualifies as added value.
For instance, if you operate a dental business and have a surgery in the local area, you need to make sure that the environment is clean, hygienic and modern. Medifit Design and Construct are one company that could transform your dental office for staff and customers, making it professional, contemporary and appealing.
YOU CAN SELL THE PRODUCT
Often the products that are offered to companies are appealing for one reason or another. They usually have some contemporary relevance to your business or industry. But that also means they are competitively priced and taking on a new product line can be risky. You need to make sure the numbers work.
This is one of those elements to include in your decision criteria. When presented with an excellent business opportunity you should first decide if the pricing works for you and if you can make a profit with it. There’s clearly no point in investing otherwise. Don’t be afraid to negotiate.
THE TIMING IS RIGHT FOR YOU
Investing in new products and services can add value to your business and increase your profits, but only if you make informed choices. You have to know the data of your industry, know what prices work for you, as well as the market conditions.
Understand the trends in your market and the mood of your target audience, this will help you decide if a product is likely to take off at the right time or whether it’s a little bit late for the market. Balanced decision making here can keep you one step ahead of competitors.