By: Joe Donoghue, President and CEO at Leardon Solutions
Many famous entrepreneurs sat on their new product ideas for some time before prototyping that invention and taking it to market. Those same entrepreneurs often say their biggest regret is that they didn’t do it sooner citing lack of resources and information.
In today’s rapidly developing and evolving information super highway, an entrepreneur has nearly light speed access to just about any fact or figure. An argument can be made either way that the sheer abundance of data is helpful or harmful to ones cause. Efficient entrepreneurs find ways to focus on the information they need and block out the rest. So what type of questions does an entrepreneur need to ask when exploring a new product idea further? Are there questions that should be answered to help avoid data overload and sitting on an idea opposed to making it happen? The answer is yes. Here are four questions entrepreneurs should answer when getting started.
Who is my market? Before developing a product, it’s extremely important to do your homework. This means conducting an analysis to truly understand who it is that you’re trying to target. Identifying a market entails looking at every aspect of your expected customer such as the average age, marital status, average annual income, geographic location, purchasing habits, behaviors and more. Take the time to not only determine your customer profile, but to evaluate the competitors in the space you’re looking to enter and your market potential. Consumer products typically have many online forums from dedicated loyalists that share information that would otherwise cost thousands of dollars from professional research firms. It would be in your best interest to examine those. Other ways of researching market demand for particular types of products is to review sites such as eBay and Amazon to see what products list for new and used and gather valuable feedback on what people do and don't like about a product.
For example, if an entrepreneur is looking to build a road bike accessory, they would want to know who the top manufacturers are for recent years and what the specs are on those bikes.
What makes my product different? Product differentiation is key to successful innovation within a market. The product needs to be unique and solve some pain point. If there’s something similar already on the market, be prepared to convey why it’s different. Is it better than the other options? Is it faster? Is it cheaper? Combined with effective marketing, product differentiation can make for a long term product run on the market leaving the competition in the dust.
For example, Leardon Solutions recently helped Resolution Biomedical develop a patent-pending cytology vial in an effort to maximize the retrieval of the cellular material. The internal wall of the vial is lined with six ridges that provide resistance to the collective device to assist in transfer of the cellular material from the device to the collection fluid. This makes the vial superior to other products on the market and significantly improves test results in a cost-effective manner.
Does my product offer value? Value comes in many different forms, but ultimately, it comes down to price, problem and quality. Does your product fix a customer problem for the right price and is it frustration free? Value plays an important role in consumer decision making and customers need to feel as if they’re getting what they pay for.
Is your product needed or wanted? A consumer purchasing decision comes down to one of two primitive mindsets. Is your product needed or wanted? The answer should provide some insight as to when to launch your product and for how much. It’s important to note that needed items tend to be more recession-proof, but also have lower margins and more competition while wanted items do well in the months leading up to major holidays and when tax refund checks start arriving in the mail.
In order to develop a product, it’s imperative that companies can answer these basic questions. If you’re unable to, your new product idea needs more work before considering spending money on prototyping or patenting. Understanding your target market is key to selling a product. Don’t just go with your gut feeling and skimp on doing the necessary research. In addition, be sure that whatever it is that you’re making is different from anything that’s currently available and solves a specific problem customers are experiencing. Lastly, not only does the product need to offer value to the consumer, but it needs to be something that is needed or wanted by them as well.
About the Author Joe Donoghue is the President and CEO of Leardon Solutions, a turn-key product developer that provides small and medium-sized businesses, entrepreneurs and startups with the tools required to take a product idea to market. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..
