I have a great idea for a product that I want to launch onto the South African market, but how do I know whether it will be successful? I don’t want to invest all of my money in this venture only to see it fail.
The first thing you need to do is create a business model. The process of developing a business model will give you the information that you need to determine whether your new product is a viable proposition. Within that document you need to outline the following:
- Your product: What are you planning to offer your customers? What makes it unique?
- Your customers: Who are you hoping to sell your product to? You need to know who your target audience is and where they can be found.
- Marketing activities: How will you find those customers and tell them about your product? This can include activities such a public relations, advertising or social media, to name a few. The channels you use will be dictated by the amount of money you wish to spend.
- Will you have a physical location or be an online business? It might be cheaper to start selling your product online initially and then open a physical store at a later stage, depending on what the product is and whether it lends itself to online retail.
- Financial information. Simply put, how will your business make money? You also need to include information about the costs of doing business, including your fixed and variable costs.
- Resources. Here you would list things such as your employees and their qualifications and capabilities, financial resources, and physical resources such a IT equipment, delivery vehicles and the like.