If you want to put a new product together, expand your current offerings or make your entire line more valuable, you’re probably at a stage in your career where things are going very well. Your original offerings are selling well, you’ve sold out quite a few times, and now you’re looking to the future.
But should you go guns blazing into this new product and throw as much money at it as possible? Probably not. In fact, it’s best to take precautions and move slowly. Here are a few reasons why.
Does Anyone Actually Want It?
It’s easy to get caught up in the euphoria of product development. However, are you sure the product you’re in the middle of designing is actually wanted and needed by the market you serve? There might be a gap or two out there, of course, but does the prototype in your hands address this? Always double check this throughout the process. The moment you stray from the mission course, it’s important to get back on it.
What Will It Cost to Manufacture?
This is quite possibly the biggest risk to consider before putting a new product plan into action. The cost of manufacturing might not be a wise spend at this point in your business’ life. After all, you’ll have to invest in items such as bulk material handling equipment and the associated labour of hiring people to man the conveyor lines for you. It’s not just the design you’re responsible for, but every other step in the journey from idea to store shelves!
How Long Will it Take?
How long between now, the initial design phase, and the final touches of the percussion process? How long until your item will be ready for sale? If you don’t know, or you don’t even have a ballpark figure to run by, it might be worth it to halt the process and take a bit more time doing your research. The longer you’re spending money, the more you’re going to lose, even if you’re sure you’re going to make it back in the end. As a small business, this protracted period of time might even be a time you don’t survive.
What Will it Add to Your Workload?
If you’re already struggling to get things done in your workplace, this is the final thing to consider about developing new products. What will doing so add to your workload? Will it overwork your current team and make their office hours untenable? What will it cost you in overtime? The more you think about these issues now, the less it’s going to cost you in payroll later on. You don’t want to overwhelm your employees – that’s what leads to a high turnover, which is never a good reputation for a business to have.
If you’re thinking about designing a new product, double check you’ve taken these risks into account throughout your plans. The more you assess, the easier it’ll be to make money.