What is the first most important question to answer when creating a business plan for a new product?

Answer 1

Is there a market for this new product?

Many entrepreneurs make the mistake of creating new products and spending so much money developing and marketing the product -- only to find that the buying public does not want it or does not need it.

Sometimes, what you think will click with the consumers does not click -- and if you have limited resources and your product is a dud -- that will be the end of your business. If you've watched the American Inventor show, many inventors suffered from this assumption who believed that the world would love their product -- only to be told by the judges that no one would buy that gadget.

The very first question you need to ask when writing a business plan is whether this is a product that people will actually buy. And to answer this question, you need to conduct some form of market research study which should be presented in your business plan. If you can afford it, hire a market research company to do some concept tests for you, even market research.

Or gather some secondary data by pouring over stats and researches on the needs of the target market. If there are similar products in the market, check if there are any data (e.g. industry or company revenues, number of players in the industry, etc.)

Answer 2

In my mind a business plan is like a road map, on a journey towards some target, so the obvious thing to ask your self with the journey is;

Where am I going, or put in a different way, what will the business look like when I have completed my vision of it.

Once you have figured out the ultimate objective, for example, your new product in every house in the world, and you earning a fee for every item produced, sold or used. then it becomes an exercise to reverse engineer the process of achieving your objectives.

For example, if you wanted to achieve your objective in say 20 years, try to describe exactly what that looks like, how it operates, what your involvement is, what you need to be doing, what you need to know, what you need to have and with whom you would be working (in 20 years)

Then you set say 15 year targets, along the same criteria, then 10 years, 5 years, 3 years, 2 years, one year, one month, weekly and daily, so that you can determine exactly what you need to do, need to know and need to have each and every day, that will eventually allow you to achieve your ultimate objective.

Good book to read is the Emyth by Michael Gerber. And surround yourself with talented people in all areas of your own weaknesses, on all levels, in order to built a team of specialists all working towards your objectives (this is what has created the most powerfull organizations).

Good Luck

Answer 3

What is my business's purpose? Or How will my business benefit others? Don't just say money is the purpose. If you answer with money state why and how people benefit by
sending money to you! Do this as brief and as clear as you can. I suggest you get the Lotus Program and it will have a list of questions for promoting or starting a business plan

Answer 4

Know who will benefit from this product. Do research to know exactly what demographic (age group), gender, and psycho-graphic
(lifestyle), are the most likely to purchase your product. Then your marketing plan will most effectively reach your target audience.
Clearly define what makes your product different than anything currently on the market.

Answer 5

What is the new product would be the most important fact, followed by who will buy it.

Answer 6

The purpose of the product and its' viability.

Answer 7

Am i going to buy this, if I see it in Retail ?. .

Answer 8

Is there a market, and where?

Answer 9

Will anyone buy it?