Checklist: New Product Development

(From Checklists for Starting an Internet Business)

Market research. Who is your intended market? Is there a demand for the product you plan to sell, and at the price at which you want to sell it? It's easier to find a market first and then determine what they want, then to put forth a ton of time, effort, and money into creating a product that no one wants.
Prepare a business plan to help you define your goals and stay focused. Again, the US Small Business Administration offers a lot of help.
Determine what equipment, materials, and supplies you will require. Contact several suppliers to compare quality, prices, and service.
Pricing. What price do you have to charge in order to make a decent profit (after expenses)?
- Your time. How much would you (reasonably) like to be paid after everything's said and done? A service such as web design requires a far greater time-commitment than, say, writing a book and continuing to sell it "forever".
- Production and marketing costs.
- Shipping and inventory. An electronic product that is delivered instantly over the 'net is very cheap to both store and fulfill, whereas a physical good that must be stored, packaged or shipped will incur extra costs.
- Customer service. Will you need to hire additional staff? For some products and services it is reasonable and even accepted to charge support fees (a typical example is technical support for a software product).
- Processing fees. How much of your gross sale is taken by your order processor or merchant account as their commission?
- Competition. What do your competitors charge, and how do they compare with you in value for the dollar?
Consider support requirements. Some products, such as software, will require more support or service than others, such as a book. What can you do to minimize support requests (ie. Create a help desk, or a database of frequently asked questions…)?
Outsourcing. It may well be that you cannot create the product on your own - for example, you may need the services of a database programmer. If you need to hire help, check references, get samples of their work, discuss product specifications, costs, timelines, and every other aspect of the job.
Consider getting your product reviewed. Colleagues (not competitors!) and prospective customers can provide valuable criticism you can use to improve the product. You may even get some great testimonials out of it that you can use in your marketing.
Marketing. Where and how do you reach your intended audience? Even the best product in the world will fail unless people know about it. Focus on both online and offline marketing medium. Prepare a marketing plan to help you shape your goals.

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