Business Essentials 2: The Product of Business.

We all need products and services. But how do you pick which one you buy? Often, it comes down to these 3 things:

1. Price. If there’s lots to choose from and they all seem about the same, we call this a commodity. And commodities are ruled by the lowest price available.
2. Ability to solve an issue. This is key. If you need something, you have an issue or problem that needs to be solved. If something does that well, you want to buy it. If it solves more than one problem, that’s even more compelling!
3. Cool factor. Sometimes it’s just cool to have something. It plays on your ego. And that’s ok.

Have you ever thought of a product or service that solves a problem? Do you think it’s unique? Or perhaps is simpler/cheaper than something already offered?

Than you could start a company that offers it.

Although it truly isn’t that easy. It takes a lot of time, energy and money to develop the product. Here are 3 things to consider:

1. Consider your potential audience. What specific group of people will want/need your product and have the money to purchase it? The answer is not “everyone“. If you think it is, then consider who’s the “easiest” subset to sell to. It’s almost impossible to sell to everyone. Plus it will cost more. The more targeted, the easier it is to sell to them.
2. Who will manufacturer it? Will you make this product yourself? Or will you deliver the service yourself? I would caution that if everything involves you; it’s not a good plan. You need to consider how to get others to build it (or deliver it) cheaper than you can, so you can make profit (and run the company). If you are “required” all the time, you will be controlled by your business, rather than controlling your business.
3. How much money will you need? So many failed businesses didn’t start with enough capital. You need to figure out the amount you’ll need to start making your own cashflow. And it’ll take you even more than you can imagine. Remember, you need marketing dollars, manufacturing dollars, distribution dollars, etc. Now is a good time to look for investors. But remember, you’ll need to share your profits with them. They’ll expect it!

So what are you waiting for?!? We’re a generation of inventors and dreamers. It’s why we have so many amazing products in the marketplace. But there’s always room for another. Yours.