Most people start a new business because they have developed a new product or service or have worked for another company and now want to go into that same type of business themselves. Below is a checklist of considerations to review.
1. Definition. Develop a comprehensive description of the product or service. State what it is and what it does. Describe every possible aspect, including the possible limitations of the product or service. Focus on this to define the narrow market niche you are seeking.
2. Benefits versus Features. Think as consumers do. They are interested in benefits not features. They want to save time and money and they expect reliability. Sell benefits not features. Businesses succeed by satisfying customers' needs and wants.
3. Product or Service Line. It is never too early to think about extending your single product to a line of products or services. Regular reviewing of your business plan will include this. Sizes, colors and options will increase in time.
4. Competitive Analysis. Competing products and services should be analyzed honestly against yours in terms of:
Market acceptance
Performance
Durability
Others
Quality
Service and parts
Price
5. Product Positioning. If your product or service belongs to a large group of similar products, where do you want to position yours? High cost, low volume; low cost, high volume; customized versus standard? Where in the array of offerings will yours appear to the buyer?
6. Frequency of Sale. How does it relate to advertising, pricing, sales efforts and other business considerations?
One-time only sale
Repeat sale (brand loyalty)
Yearly sale
Purchasers buy from multiple suppliers
7. Product Life Cycle. All products have a life cycle which includes 1) introduction, 2) growth, 3) maturity, and 4) decline. These parts of the cycle will change as competition develops and as users' needs or preferences change. Technologies and environment also change.
8. Research. As part of your write-up, devote space to the various types of testing and research which have been done and will be done. How was the original concept or prototype evaluated? How extensively was it evaluated by future purchasers in terms of usage or prices? Why do you believe it is superior or equal to others on the market?
9. Final Checklist. How has your product or service planning reviewed:
