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Creating a new product can make or break your business. That’s why you should have a good product development process which is suitable for the nature of your business and your management style. However, many entrepreneurs usually get stuck on ideation because they wait for the perfect product idea that would undoubtedly sell. So, how do you create a new product?
In this post, you’ll learn the step-by-step process on how to create a new product for your business.
Ideation and Brainstorming
The first step of product development would be generating a product idea through brainstorming and product research. Also, it helps to ask your potential customers by conducting a customer survey and getting feedback on your existing products.
Listing all your ideas is important, along with considering the feedback and suggestions of your potential customers. Also, it helps to see what areas your products will be useful based on industry or niche. You can seek expert advice from Avomeen to help you kickstart your product design.
Many entrepreneurs don’t understand that the best ideas usually come from the concept of an already existing product. One of the best tools to use during this stage is the SCAMPER technique, which guides you in generating diverse product ideas. Instead of thinking unique and original ideas, it provokes you to gather ideas from existing ones. Here are the details of the acronym SCAMPER:
- S for Substitute, such as substituting genuine leather with faux leather
- C for Combine, such as launching a smartphone case and a screen protector in a kit
- A for Adapt, such as a brassiere with front clasps perfect for nursing mothers
- M for Modify, such as creating a portable electric fan with music capabilities
- P for Put to Another Use, such as memory foam for dog beds
- E for Eliminate, such as a middleman selling smartwatches and passing the savings on to target consumers
- R for Reverse or Rearrange, like a duffle bag to avoid wrinkles on suits
If you already have a product in mind, it’s important to validate a product idea first. By doing so, you’ll ensure that you create a product that sells, and avoid wasting time, effort, and resources. Getting feedback from an unbiased audience is important during this stage.
Check these helpful tips to help you in validating your product ideas:
- Create a list of ideas and then share it with appropriate decision-makers, like your management team.
- You can narrow down the list by discussing the advantages and disadvantages of each product idea based on potential revenue generated, resources, and time allotted for creating the product.
- Discussing your product idea with family and friends is also a good idea.
- You can carry out an online survey to get customers’ feedback. You can also use social media also to solicit feedback through comments.
- Ask for feedback on online forums, such as Reddit.
- Start a crowdfunding campaign
- Research online demand via Google Trends.
- Launch a “coming soon” web page so you can gauge the interest of customers via pre-orders.
Competitive Situation Analysis
Now, it’s time to analyze your product ideas from a business perspective. During this stage, you have to determine the product demand and your competitors. Also, it’s the best time to know the manufacturing and operational costs to determine your profit margin.
Prototyping is the act of experimentation with numerous product versions. Its primary goal is to create a finished product you can use as a sampler for trial purposes before mass production. By doing so, you can slowly eliminate options and improve your product until you achieve a satisfactory final sample.
You can release a few of the final samples of prototype or have a soft product launch before the official product launch so you can perform market testing. At this point, you can evaluate the marketing strategies and competitive price of the product.
Product Launch Preparation
Start production of the product for the first batch and determine how many products you should produce based on the result of your market testing and the demand. You can also speak to product advertisers and distributors about ordering your product and retailers to be sold in stores.
Here are the important considerations when preparing for a product launch:
- Choosing Suppliers
Before launching a new product on the market, you have to be prepared with all the things you need. You need to be ready with all the tools, equipment, and manpower, aside from the raw materials so you can achieve your short-term and long-term production goals for your new product.
Here are some helpful tips on how to choose the best suppliers for creating your new product:
- Find the Best Suppliers: It’s important to find the best suppliers so you can deliver your products without delay and at the right price. Make sure to choose reputable suppliers that are following quality standards and adhering to industry regulations.
- Begin a Bidding Process: For you to make an informed decision, you can send companies Requests for Proposals or RFP, which include the details about your product and your other requirements.
- Monitor Performance: Make sure to check all bids and proposals and compare them to determine the best suppliers for your business.
- Managing Inventory.
Managing inventory is crucial before launching a new product. Failure to do so may leave you with a lot of problems such as stockouts, mismanagement, and inaccurate recordkeeping.
Here are the inventory types you have to manage:
- Raw Materials: It involves managing all raw materials that you need to create your new product, such as cloth, buttons, and thread for a clothing line.
- Works-in-progress Inventory: These items are on their way to production but not yet approved and ready for sale.
- Finished Products: It pertains to managing all final products that are ready for sale.
With all the steps mentioned above, you can create a new product for your business without wasting too much time, effort, and resources. Through brainstorming and ideation, you can think of the best product idea for your new product, which is not necessarily a hundred percent original or unique.
Product validation and market testing will help you prepare for the product launch. It helps determine the product demand, the best marketing strategies, target audience, and competitive pricing of the new product.