Determine if your product is profitable before you make it
|
| Tweet |
|
Free PDF Download Reveal one of the most frequent mistake why thousands of small businesses flop - By Mark Gwilliam |
Identify Your Target Market
The first step is to identify your target market. Who needs your product or your service? The answer to this question will help you answer the question, "To whom are you going to sell your product or service?"
If you can't find an answer to these questions, you should abandon your business idea for a better one.
Conduct a Saleability Study
You can save tons of money if you take the time to do a study on the saleability of your product before you actually mass-produce and distribute it.
A simple survey asking people who belong to your target market (a random sample would be ideal) the question “would you be interested in buying this product or availing of this service in case it becomes available?” could save you from a very expensive mistake.
Conduct a Profitability Study
Your target market may be interested in your product or service, but are they interested enough to purchase or avail of it at your asking price? Thus, you have to analyse how much money and resources you'll need for producing and distributing your product or for offering and delivering your service.
Basically, you want to determine if your product or service can be produced or offered at a cost that will let you sell it for a large margin of profit.
Conduct a Competitive Study
Even if you can produce your products or offer your service at a rate that your target market can afford, this won't be enough if your price is not competitive. Even if your target clients are willing to pay $1,000 for a full online marketing service package, they are not likely to do this if they can get a comparable service for a lower price.
Starting a business requires deliberation and planning. Isn't it much more reassuring to know that you're headed for success before you take the first step? Thus, before you begin your new business venture, let a professional evaluate the profit potential of your business idea.
Related Articles
Home
> Small-Business-Consulting
> Mark Gwilliam
> Determine if your product is profitable before you make it
> Google +
|
Free PDF Download Reveal one of the most frequent mistake why thousands of small businesses flop - By Mark Gwilliam |
|
About the Author: Mark Gwilliam RSS for Mark's articles - Visit Mark's website Mark Gwilliam has worked extensively with several blue chip companies in the UK, Europe & Australasia and is an accomplished entrepreneur. He has written several eBooks & eCourses to help fellow entrepreneurs succeed, from the comfort of his home by the beach in beautiful New Zealand. Learn how to attract customers, enhance your customer relationship & propel your business. Claim 2 free gifts from Mark at www.themarketingdude.com & www.mark-gwilliam.com & look out for more special gifts to reward you for taking action! Click here to visit Mark's website. Why you need a unique selling point USP Why using a virtual office assistant may be more cost effective How to run a successful home based business Discover 7 Common Causes of Cash Flow Problems in your Business before it is Too Late Attract as many motivated prospects as you can handle |
Related Forum Posts
Share this article. Fund someone's dream.
Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva.
Over $50,000 raised and counting - Please keep sharing! Learn more.
Trending Articles
|
|
Like this page? PLEASE +1 it! |
Newsletter
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Suggestions
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.







