If you try to Google “how to make a new product that pays for itself” you will get stuck with many articles on paying yourself as an entrepreneur. This leads us to believe that there is not much information on ensuring that your new business development project, service, or product, will make your company revenue. Instead, it appears that once you’ve developed a new product or started a new campaign, you are on your own.
Fortunately, here at Business Success Consulting Group, we understand that businesses operate with their bottom line in mind and are loathe to make changes that will cost the company money, instead of earning it the projected income.
Is Your Project Viable?
The first question to ask yourself when you consider embarking on a new project or launching a new product is: “Is this viable?” To put it another way “Can I be assured that this project/product will earn the company money?”
Many factors go into determining viability. Here are a few questions you can answer to discover if your new project, product, or plan will be a success:
How long will it take to develop and implement?
Often, a new product or service will pay for itself, eventually. However, in business, it’s essential for a new concept to pay for itself as quickly as possible. That’s why it’s important to get a realistic idea of how long it will take to develop and implement your newest project.
What are the upfront costs?
Developing a new idea has costs associated with it – even if it’s just your own paycheck. Take a hard look at all of the upfront costs before considering whether the product or project should go forward.
Can I get funding before release with pre-sales or investment?
If your business is well known it may be possible to get funds for your product before its release through pre-sales or investment. This will mitigate the costs of development and get your product into the hands of your most dedicated customers.
What would it look like to have the product pay for itself?
A full cost analysis will let you know how much money the product/project needs to make before it pays for itself. This should include how much employees are paid to develop it, material costs, cost of office space, and more.
Understanding the above points will help you decide if your company should go ahead with the new product, service, or project. Whatever you do, it needs to pay for itself rapidly.
Five Ways in which a Product or Service Can Pay for Itself
If your product, service, or project appears viable, you may be wondering how you can get it to pay for itself, rapidly. Here are five strategies you can implement to help your business recover any money invested in your newest commodity.
1. Organize and plan
Releasing a new product or service consists of more than just developing and then delivering your commodity. There needs to be a dedicated program created specifically for your release. This should include marketing, PR, sales, manufacturing, development, and anything else that will contribute to the success of your endeavor.
2. Cut out anything that isn’t working – fast
While a product release needs to be precisely planned out, it also requires flexibility. If you or your team discover a particular approach is not working, it’s important to adjust, adapt, and either build a new strategy or reinforce something that is already successful.
Selling your products or services before they become available is a great way to make sure your commodities make money before they are ready for release. This one strategy can help support further research and development of existing products, upgrades, and new products.
4. Create buzz among your dedicated customers
Once you have your product/service in development, share some of the excitement with your most dedicated customers and any industry influencers through press releases, teasers, and more. This can help ensure publicity as soon as the product is ready for release.
5. Set up a limited release for early adopters
One very successful strategy that the entertainment industry has down to a science is providing early, limited release to reviewers, die-hard fans, and select individuals who are willing to pay a premium for an early version. This limited release creates buzz and brings in extra income before the product is released broadly.
Business Success Consulting Group is here to help your business grow. Contact us today to find out how our organizational, leadership and financial consulting services can benefit your company.