A great business idea remains an idea until you find a way to monetize it. Here are some steps that will help you turn your idea into a successful money making product.
Step 1: Begin with a concept
Why do people need you product? And with the presence of competitors in your market segment, why should people bother buying it?
An example would be the fact that nowadays, people want things done right away. So you think, why not make a way of cleansing hair without having to wet it so you can rush off to your activity without wasting time drying your hair? After thinking about it for a while, you suddenly come up with an idea of why not make a dry shampoo that can cleanse your hair without water for those times that you are in a rush.
Formulating a good business idea still relies on one concept: it needs to satisfy a need or a want.
Step 2: Put it on paper
Now that you have the concept you should list down the specifics of the idea. Who’s your market? What will you call your product? How will you market it?
There are generally two ways to define your product: first is to go through actual research such as a focus group discussion, wherein representative respondents from your desired target market of about eight to ten people are placed in a room with a facilitator where they discuss the concept. The second step is to find a company to handle your product development.
Plotting your goals and putting them on paper gives you a blueprint to follow, and more importantly, a rough action plan on what to do next.
Here’s a rough example of a product proposition:
a. Product? Shampoo
b. Positioning? Dry Shampoo – convenient hair cleansing without the
need for water
c. Packaging? 100ml PET Bottle w/ full color label
Step 3: Make a prototype/sample
You need to create samples of the product to test them and see what could be improved. The tests will also show the durability and effectiveness of your product. After it has been approved, accelerated stability tests and product usage tests may be conducted to ascertain the product’s longevity and effectiveness. Once these are done, you now have a mock-up of the product that was once just in your mind.
Step 4: Take care of the legal paperwork
Getting the proper accreditation will not only help legitimize your business, but also protect your product ideas from people who wish to exploit it. This is a practical move that some businessmen overlook because they find it tedious and time consuming; don’t be one of them.
This is to ensure that the product you would want to sell is safe for public consumption. This process is called Product Registration which starts by completing all the required documents, submitting it to BFAD, paying the required fees and waiting for the actual registration number to come out.
Simultaneous to this, it is also advisable to register your brand name and logo with the trademark division of IPO (Intellectual Property Office) to make sure that no person or company has used or has a pending registration of the brand name you wanted.
Step 5: Begin actual production
Now that you’ve finished product development and the legal paperwork its time to turn your vision to reality. Prepare to source raw materials from reliable suppliers and you can start making and selling your product. Remember to do your homework before signing up with a supplier and/or manufacturer. Make sure that you get the best deals by ‘canvassing’ or doing a short survey of potential suppliers and manufacturers in your area of business. In business, it pays to be prepared.
Patricia Besinga is the Managing Director of Prestige Labels Co. (PLC), a product development and marketing company. PLC services include product formulation, packaging sourcing and design, as well as supply management. You can reach Patricia at telephone number (632) 8256202 or log on to www.prestigelabelsco.com.
Source: Your 5 step guide to creating a product by Patricia Besinga from Entrepreneur Philippines Magazine
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