So you want to bring a new product or service to market.

You've done your

homework and decided exactly what you plan to offer; now all you need to
generate is sales. Sounds simple enough, doesn't it? But every day, countless
new product and service ideas are conceived--never to be born because they're
not properly brought to market. In fact, a large percentage of the calls my
company's coaches receive are from small-business owners who want exactly
this sort of help. And we carefully guide them through these seven important
steps that will help them successfully bring their new products and services to
market.

1. Study your competition. Many business marketing classes teach participants

how to perform a SWOT (strengths, weaknesses, opportunities and threats)
analysis. You have to start by taking a serious look at your competitors. Make a
list of the businesses that offer products or services similar to the one you plan
to launch. Even if you think your new product or service is entirely unique and
without existing competition, it's important to put yourself in your prospective
customers' shoes and imagine what they might buy in lieu of what you plan to
offer. Once you decide whom your competitors will be, review their marketing
materials, including their ads, brochures and websites. Evaluate how your new
product or service will stand up against what's already being offered, in what
ways you'll excel, and which companies or their offerings pose the greatest
threats to your success.

2. Target the ideal customer. To successfully launch your new product or

service with minimum financial outlay, it's essential to focus exclusively on the
prospects you believe are most likely to purchase from you. These may be
customers who are currently buying something similar and will appreciate the
additional features your new product or service provides. Your best prospects
have a perceived need for what you offer, can afford to buy it and have
demonstrated a willingness to do so--probably by purchasing from your
competition. Bear in mind, it's always easier to fill a need than to create one.

3. Create a unique value proposition. At this stage, you should have a clear
understanding of what you must offer in order to stand apart from your
competition and who will want to take advantage of your offer. But do you
know why customers will want to buy from you vs. the vast field of competitors
out there? What benefits and features will you provide that your prospective
customers will value most? The bottom line is that your product or service
"bundle" should be unique and meet the needs and desires of your best
prospects.

4. Define your marketing strategy and tactics. Next, choose your sales and
marketing channels. Will you market online, via catalog or through dealers, for
example? Generally, multichannel marketers achieve the greatest success
because customers who can shop when and however they like tend to spend
more and shop more often. Suppose your strategy is to market a low-cost
workout device to people who can't afford gym memberships or high-priced
home equipment. You might choose traditional direct marketing plus online
sales as your primary channels, and employ tactics including direct-response TV
spots and online ads and e-mail solicitations that link to your website.

5. Test your concept and marketing approach. With all the money it takes to
bring a new product or service to market, it's foolhardy to rush headlong into the
launch phase prior to testing. What should you test? It's best to examine your
product or service bundle plus your marketing message and you're your
marketing materials. Depending on what you plan to market and your budget,
you can use formal focus groups (or simply host roundtable discussions with
members of the target audience), employ online research or mall intercept
studies, or distribute your product to a select group of users for testing. Only
after testing is complete, should you proceed to the final creation of your
marketing tools and materials.

6. Roll out your campaign. Public relations often plays a vital role in the
launch of a product or service. You can use media relations tactics to place
articles and win interviews, get coverage by allowing key press to review your
product, hold a launch event, or use grass roots marketing to build buzz. But no
matter what publicity route you choose, first make sure your product or service
is completely ready and available for purchase in order to maximize returns
from the coverage you receive. And your other marketing efforts should follow
closely on the heels of your press roll out. Monitor the results from all media,
and in the first weeks and months, be prepared to adjust your campaign to take
advantage of what's working best.

7. Know your product's lifecycle. The campaign you use during the

introduction and education phase of your product or service launch will need to
be updated as your product or service matures. If you're monitoring your
marketing results carefully, you'll begin to see diminishing returns that will
indicate when it's time to revise the product or service itself, alter your media
message, or even phase out this particular offering and lay the groundwork for
the launch of your next great idea.

A technical feasibility study assesses the details of how you intend to deliver a product

or service to customers. Think materials, labor, transportation, where your business will
be located, and the technology that will be necessary to bring all this together. It's the
logistical or tactical plan of how your business will produce, store, deliver, and track its
products or services.

A technical feasibility study is an excellent tool for both troubleshooting and long-term

planning. It can serve as a flowchart of how your products and services evolve and
move through your business to physically reach your market.

Begin—or End—With an Executive Summary 

The word "summary" is key here. Highlight the key points of each section you'll include
in your technical feasibility study. You can do this in advance to provide yourself with a
sort of guideline or skeleton to follow as you prepare your study. It is often easier and
more concise to write it after you've finished, so you have the information you want to
include right in front of you.

In either case, the summary should appear at the beginning of your technical feasibility
study. 

Prepare an Outline 

Even if you decide to write your executive summary last, you can begin with an outline
that will serve a similar purpose in guiding you through the remainder of the study.

The order in which you present technical information isn't as important as making sure
you have all the components in place to show how you can run your business. You
don't have to include specific financial information in the technical portion of
your feasibility study. However, all information in this component should support
financial data represented elsewhere. 
Basic areas you'll want to cover include materials, labor, transportation or shipping,
physical location, and technology. Be sure to include a thorough description of the
services or products you'll be offering. How will your business benefit consumers? Give
investors a reason to choose you over your competitors.

Calculate Material Requirements

List the materials you'll require to produce a product or service. This section is where
you'll indicate where you'll get those materials. Include information such as whether
volume discounts will be available as your business grows or if you plan to manufacture
your parts at some point in time. 

Include what parts and supplies you'll need to produce a product, including things like
glue and nails. Mention all materials that will be involved in producing or manufacturing
what you're selling. 

You don't have to include actual financial data in this portion of the study either.
However, financial data that supports your narrative assessment should be included as
an attachment in a separate spreadsheet.

Calculate Labor Requirements

You can't run a business, offer services, or manufacturer products without the help of

others and that help will cost you. Even if you start your business as its only employee,
you'll have to add to your labor pool at some point if you plan to grow.

In most cases, labor will be one of your biggest small business expenses, if not the
biggest. List the number and types of employees you need to run your business now
and that you might have to employ in the future as your business grows.

You can break labor into categories if necessary, such as senior-level management,
office, and clerical support, production or distribution staff, professional staff
including lawyers, accountants, engineers, and marketing, and fulfillment employees—
those in the mailroom or shipping department.
If you plan to outsource order fulfillment, fundraising, or other aspects of your
company’s business, be sure to list what functions you're targeting and to whom you'll
send these tasks. 

Transportation and Shipping Requirements

How will you transport items if you must send them from one place to another? Smaller
items can be shipped via local carriers, DHL, or USPS, but heavy or bulk items must be
transported via a freight or trucking company.

If you're shipping perishable items, you'll need special overnight handling. You might
also need special permits to ship certain items, and nonprofit organizations should
consider applying for discounted postal rates. These are all things that affect the “how”
of moving your goods from one place to another.

If you offer services, how will trainers, educators, consultants, and sales personnel get
to customers and clients? You will need a licensed distributor or pharmacy to ship on
your behalf if you offer a product that's governed by state or federal law such as
medications or prescription medical supplies,

Calculate Marketing Requirements

How will you reach consumers? It is a crucial consideration because your business will
fail without them. It's something investors will be keen to know. 

Go beyond simple advertising plans, although this is important, too. Exactly what type of
advertising campaign do you plan to launch? Will you lean more heavily on print media
or other options and what consumers will you target? Explain why they would want to
buy from you rather than any of your competitors. 

The Physical Location of Your Business

Where you run your business will have an effect on your success. If you're starting in
a home-based office, determine when and if you'll need a “brick and mortar” office at
some point in the future—office space outside your home. Will you eventually need
warehouse facilities, your factory, or your trucking facility? Will you require a retail
storefront or any other purchased or rented facilities to conduct your business?

Discuss the pros and cons of where these facilities will be located in the physical
location component of your feasibility study. Should they be in one central location or
across state lines? Do you need special parking considerations for customers or trucks?
Do you have to be near other facilities such as an airport, a commerce center, or a
shopping mall?

Technology Requirements to Run Your Business

Every business needs at least some kind of technology to operate. The technology
component of your feasibility study should include discussions about telephone
answering systems, computer hardware and software, and inventory management.

Don't overlook items like cash registers and potentially the ability to accept credit cards
and process checks. You might need special devices to accommodate the disabled, or
teleconferencing equipment and facilities. Cellphones and PDAs are almost a must for
most businesses, and you might need alarm or camera systems and manufacturing
equipment as well. 

Include Target Dates 

Tell investors when you plan to do what to bring your concept to fruition. Don't neglect to
mention the small steps. Cover it all, from initial organizational meetings to when you'll
purchase equipment or facilities and when and how you'll open your doors for business.

Be reasonable. You don't want to promise that you'll perform by a miraculous deadline
then fail to do so. 

Support Your Financial Information

Don't make the mistake of trying to entice investors with your staggering growth

projections and a potential return on their investment. There's always an increase in
expenses with an increase in revenue. 
Don't rely strictly on feasibility study conclusions to impress an investor. An experienced
investor or lending institution will read your entire report and come to their conclusions.
It's therefore critical that the technical and financial data in your study reconcile. If other
parts of your feasibility study show growth, you'll also have to project labor and other
costs and the technical ability to support that growth.

The technical component should serve as the written explanation of your financial data
because it offers you a place to include detailed information as to why an expense has
been projected high or low. You can explain why it's even necessary. It demonstrates to
potential investors and lenders—and in some cases, potential clients—that you've
thought about the long-term needs your business will have as it grows.

Summary of the Technical Feasibility Study

Be sure to include all the technical requirements of your business from production to
customer receipt. This information will help investors know more about the operations of
your business. 

Having a great idea for a product or business isn't enough—you have to show how you
can make money from it. The technical feasibility study addresses the physical and
logistical mechanics of it, and how you'll be able to get something into the product and
back out the door to customers.

ARTICLE TABLE OF CONTENTS Skip to section

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 Begin—or End—Executive Summary

 Prepare an Outline 
 Calculate Material Requirements
 Calculate Labor Requirements
 Transportation and Shipping
 Calculate Marketing Requirements
 The Location of Your Business
 Technology Requirements
 Include Target Dates 
 Support Your Financials
 Summary


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