Content of this unit
Product or service risk
Before launching your product, you need to establish if it is likely to succeed in the current market. Will people need it? Does it solve a problem? Is the product easy to market? How will people know about it?
It is crucial you understand what purpose or need your product or service serves to sell it successfully. If you are starting a business based on an idea that is not unique, are you confident that it will really work?
What if a competitor does it better than you or a disruptor comes along and eliminates the need for your product? Could you adapt and diversify your product to meet market needs or will you be out of business as a result? Is your product strong enough to withstand all these potential risks?
It is also imperative that you understand every detail of how to bring your product to fruition. How will you manufacture and source your product? What if suppliers no longer meet your expectations, let you down on delivery times or increase their prices?
You should also consider if the product needs certain licensing, copyrights and intellectual property (IP) before you spend money and time creating something that may not even be legally sellable.
It is crucial you understand what purpose or need your product or service serves to sell it successfully. If you are starting a business based on an idea that is not unique, are you confident that it will really work?
What if a competitor does it better than you or a disruptor comes along and eliminates the need for your product? Could you adapt and diversify your product to meet market needs or will you be out of business as a result? Is your product strong enough to withstand all these potential risks?
It is also imperative that you understand every detail of how to bring your product to fruition. How will you manufacture and source your product? What if suppliers no longer meet your expectations, let you down on delivery times or increase their prices?
You should also consider if the product needs certain licensing, copyrights and intellectual property (IP) before you spend money and time creating something that may not even be legally sellable.
