Chloe Andries
TechInAfrica – Every new idea could be the seed of success, but it will be given the necessary care and maintenance to flourish. Every new product or company starts with an idea. But how do entrepreneurs determine whether their idea is worth taking to a higher level? Proposing a unique idea is one thing but turning it into a successful and long-term product is another.
There are three key areas that you must consider carefully when assessing the sustainability of your idea:
Market and competitive environment
Every time you think about launching a new product, take a look at the market you are entering, and your potential competition should be at the top of your list of priorities. Be honest about the real existence of an opportunity to innovate and whether you can really compete in the marketplace. If you can’t make the impact you want, it’s an important warning signal.
Of course, you also need to evaluate whether your idea can bring in money. By looking closely at revenue generating opportunities and exploring different pricing models, you can determine if you should take the next step to turn your ideas into a product.
Analysis of the brand image and acquisition channels
As your idea begins to take on a more solid form, it is essential to focus on branding and customer acquisition. When it comes to brand image, you can ask yourself questions like “Can we launch a complete product portfolio with a unique brand narrative?” or “Can we outperform our competitors?”.
If you are convinced that the answer is yes, then it is important to thoroughly analyze how you can get support for your product. Customer acquisition has so many layers and possibilities that it must be executed correctly. You can ask yourself:
- How easy will it be to get community support?
- How effective is your communication with potential customers, whether by email or other means? Is paid advertising feasible?
These are all critical areas to analyze before going any further with your idea.
Product, operations and supply chain analysis
Exploring sales potential and margins will give you a better idea of the profitability you can expect your unit’s savings to become and in what time frame. If your product requires manufacturing, this is a good time to look for potential partners. You may want to think about the extent of production capacity, the availability of payment terms and order delivery times.
If you are considering creating a product portfolio, a crucial step in the process is thinking about R&D requirements and opportunities for differentiation. Any legal or regulatory concerns should also be fully addressed at this time.
After exploring all these areas, you will be in a much better position to decide if your idea has what it takes to become a legitimate and successful product. If you don’t feel confident, it’s time to go back to the drawing board. But if, after doing all those analyses, you decide to launch your product or company, don’t forget that this is only the beginning. For an idea to reach its full potential, it must be constantly nurtured, cared for and engaged in.
Source: Startupnation
