With a new product in hand, you have to evaluate its viability to make sure it is a worthy investment to offer to retailers. Inventors should carry out a viability analysis. That way, they can ascertain whether the product will sell, the size of the market, and even its future. It is a crucial process that can help a business avoid major pitfalls that startups experience.
A product ought not to be based on feelings; it should be guided by tangible research, a clear picture of how the product would perform, and evidence-based information to make the crucial decision. When it comes to a new idea product, here is some idea validation help for inventors.
Who are you targeting with the new product?
You need to establish the target audience. What are its characteristics? Is there a need for your product? Will retailers want to buy it? Answering these idea validation questions for inventors will help give you information on whether there is a need for the product. It would be a big mistake if you continue investing in a product that has no adequate market.
Once you have established there is a market, you need to study the characteristics of the market, such as their likes, preferences, tastes, and demographics among others. Armed with this information, you will have a clearer picture of whether it’s worth investing in the idea or what you need to ensure that the idea becomes viable.
Are there others who are selling similar products?
Another factor when it comes to idea validation help for inventors is you need to establish who the competition is. These are businesses producing similar products or offerings that can be easily substituted for what you are planning to produce. Consider the following:
- Who is the largest competitor?
- What is their market share?
- What strategies have they used to remain at the top?
- Are you able to match that with your current resources?
- How can you capture their market share?
- What marketing strategies do you need to use to ensure that the new product gets a sized market share?
To help answer these idea validation questions, inventors need to study the current market and also visualize what the future for their product might look like.
How do you make your product profitable?
At this stage of the idea validation process for inventors, you or you need to help your team establish all the costs that will be incurred to produce your product. To produce gains, you need to make some profit; therefore the revenue-generating capability of your product will have to be beyond the cost. The profit margin should be enough to allow you to grow your product and, at the same time, enable the product to remain competitive. High or low-profit margins will end up hurting your business, putting its future in jeopardy; therefore, set it at a reasonable level.
Think carefully about these factors! They are crucial in ascertaining the viability of your new product. The research will help inventors answer these idea validation questions. However, remember that any business venture will always be risky, but gathering enough evidence will allow you to make tangible decisions and ultimately lead to the success of your venture.
This guest blog comes from the Chicago-based retail consulting company Retailbound. They help innovative product start-ups and small companies get their products “retail-ready” and firmly placed with major US retailers.
Yohan Jacob, their Founder and CEO, recently guest-starred in MAKO’s Product Startup Podcast! Click here to listen to the episode now!
Have a product you want to offer to retailers? Contact them at info@retailbound.com for more information!
About: MAKO Design + Invent is the original firm providing world-class consumer product development services tailored to startups, small manufacturers, and inventors. Simply put, we are the leading one-stop-shop for developing your physical product from idea to store shelves, all in a high-quality, cost-effective, and timely manner. We operate as one powerhouse 30-person product design team spread across 4 offices to serve you (Austin, Miami, San Francisco, & Toronto). We have full-stack in-house industrial design, mechanical engineering, electrical engineering, patent referral, prototyping, and manufacturing services. To assist our startup and inventor clients, in addition to above, we help with business strategy, product strategy, marketing, and sales/distribution for all consumer product categories. Also, our founder Kevin Mako hosts The Product Startup Podcast, the industry's leading hardware podcast. Check it out for tips, interviews, and best practices for hardware startups, inventors, and product developers. Click HERE to learn more about MAKO Design + Invent!
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