16-Step Guide to Evaluate the viability of the Product

In starting a business, it is important to plan what to sell and be sure that is relevant to the people. It is a necessary step so that your business will grow and develop.

The step in doing marketing and to be sure that you’ve picked the right winner is to research the marketing demand that scoop with your market depth and competitiveness.

If you get this step wrong, then you are just wasting your efforts, time, energy and everything, even money that you’ve invested, it will all gone in just a one snap.

Get this thing right to make your marketing successful.

If you want to build a strong foundation of your marketing, be sure that you’ve got an exact guide to have a viable and profitable product to your business. 

Let’s dive in.

Note: This post is a great help to analyse a different factor how viability of the product is all about.

Let us be guided that there is no product factor that will give us a 100% confidence. But, through the combination of variety of factors, it will be able to give us an assurance that the product choice will become a successful one.

Ways on how to build a business 

  • There are some ways on how to build a business before doing an evaluation. Let us put in our mind that the first thing to do is to decide what is a right product for business; make, manufacturer, wholesale or dropship.
  • Make - Making a product like coconut oil is not that easy, you need to look for a good ingredient to have your own good recipe. It doesn’t matter if it is sophisticated and expensive as long as it is a good hair product. If you used an inexpensive product, then you can sell it in a lower price, you need to be careful, control your over pricing and lower inventory risk.
  • Manufacture - When it comes to manufacturing a product, especially this coconut oil product, it needs to have a partner in making the product for hair care treatment. The costs will be much higher if it will be making on our own due to minimum order quantities set by the manufacturer.
  • Wholesale - This is to sell a product in large quantities to be retailed by others. This is only for people who will purchase a large quantity of product and given an amount with discount. Everytime you buy a wholesale coconut oil hair product, you can control your overpricing as prices organized by the manufacturers.
  • Dropship - this is to help the seller ship the customer’s orders direct from its suppliers. This is for retail businesses that does not want to keep a stock of product. This can also lessen the margin of costs, but before we can start up with drop shipping, we need to work with drop shipping workers.

When starting a business, we need to evaluate it first. Evaluation is necessary when starting a business to evaluate the viability of the product especially if it is own made coconut hair product and coconut hair conditioner. Remember that if the product you’re making is not appropriate for others, you can always look back and evaluate it.

Evaluating the product idea

The first thing to do when starting up a business is to make a plan that includes the target market, estimating the profit, the total revenue and if the product you want to sell is in demand or a trending product.

1. Capability of market size or demand?

Market size and demand are more difficult than expected. You need to have a good sense of market size and demand before investing anything in starting a business such as; time, money, effort and energy. You can use any alternative way especially and application to monitor your business, like how much product you can sell each day or how many people will purchase and talk about your product. It is important to monitor your product so that you can now have any idea how to estimate it next time so that you cannot waste any amount of time, effort, money and energy.

2. Know your competitors

It is a good idea to know who are your competitors that’s why in starting a business, you really need to have some idea about your competitors. Having competitors gives you idea how to adjust your sales on your product and understand more about competitive landscape.

3. Identifying the growth of market (trend, fad, or flat)

The potential market size and demand, should always know which right direction should take. In this potential, you need an amount of energy, time and effort to start a business.

4. Customers can buy product locally?

If you sell your product locally, then it is more convenient for people to purchase online. It can be so much easier for them to search the product they wanted and purchase it.

5. Know your target customers?

Target market or target customers are important when planning and starting a business. You need to think wisely who will be your target market. Don’t start a business without thinking your target customers.

From this information, customers are important in business because they will be the one to purchase your product and also a way that can boost your business well.

Criteria of Product-Based

After reviewing the market-based criteria, we now have idea about the direction of our business and the target customers. Considering the factors will lead to a better business.

Product-based criteria helps you to get understand and get aware about the product’s strengths and viability. This will help you to be aware of all about product-based criteria.

6. The ability of your selling price?

Prices are important when it comes to business. The potential selling prices will help you find more customers. Be sure that the prices are achievable enough for people who want to purchase your product. Don’t let the customers hesitant to purchase, be sure that they are confident to buy online.

7. Capability of your markups?

Markup is the value of the price that a seller adds to the cost price of the product. This mark up will also get to help you to have profit. For example, the coconut oil hair care product, starting a small amount of price as the cost price, the seller or retailer add some small amount of price as value. Markup refers to a cost that margins to the price to have a profit.

8. The quantity of SKU’s needs to stock

In business, the more SKU’s the more you can have a hard time dealing with those issues. If you’re planning to have a clothing line business, you really need to be sure that you all the sizes that people are looking for, not just sizes but also colors so that they’ll have choices what they like about. Though, this will increase your cost for inventory and potential shipping mixups.

9. Offering a subscription for online business

Having an online business, it is necessary to have a good value and customer. When it comes to subscription, it is also a good idea for the product you are selling on your online business to maintain the customer’s value. This can help you provide the ability to spend more to gain more customers and to make your business successful. 

10. The product size and weight

The product size and weight of your business is important because it has a big impact on your sales. This will cost a lot when it comes to shipping, if the product is heavy, it is more costly and this can decrease potential buyers and squeeze the margins of your product sale.

11. The durability of the product

The quality of your product is necessary if it is durable or not, because durability is what people are been looking for, always remember that quality over quantity. If the product is durable enough, then it is more ideal. This will prevent from breakage during transit to different places.

12. The seasonality of the product

As seasons change, the trends also change. People will depend on seasons or what product is now in trend. You need to be ready that all products will depend on seasons, for example, Christmas seasons, people will look for decorative product that will fit to the season, if it is summer seasons, then people will purchase a product that they can use for summer seasons. Be sure that your product you are selling is suitable for all the season, because it is what people like about.

Seasonality is important and we should always bear it in mind because it can affect to our overall viability in business.

13. Passionate product or solving customer’s problem?

Having business is much nicer if it serves as your passion not just the idea of it is nice to have this business because after all, the development of business is important in the end. We don’t want to waste our business, we don’t want to slip it away, right? So, be sure that you start a business because it is all you ever wanted and it is your passion to run a business. It is a great idea that you do that thing because it is your passion not just you are required to build a business because it is now in demand.

14. Usable or disposable product?

Lowering the marketing costs and increase the average customer’s value is all ever want with business owners. Consumable or disposable product is a great idea this can give a great opportunity to the business and business owner’s perspective. This can also gain more trust from your previous customers.

15. Is the product biodegradable?

Choosing a right product is important, don’t choose a product that is perishable because it will only give you a hard time and a disaster. You only find yourself struggling to find a good market and market sales. 

16. Are there limitations or control on your product?

In many businesses, it is really important to plan ahead of time before building a business; Business plan is needed and necessary to estimate how much time, effort and money you will invest, that is why there is restrictions or regulations on your product it is already part of life of business. This will give us an idea or better understanding how we can work smoothly with the business. This will save the money, effort and energy that the business owners invested. So, business planning is important if you don’t want that your business will be wasted.

Conclusion

To conclude this, after knowing and understanding about all these ideas about business, it comes up in our mind that having a pretty idea for our business will have a strong and potential market for it. There are some ideas that become a highlight because of low cost that stands out in starting a business. Also, a product that is in demand, trend and seasonality stand out as well. 

However, there are few concerns about this. We don’t want that the business we build will just be perished in a one snap. We need to prevent this, don’t let anything to be slip away. Some concerns are about the selling price, low product price and competitive landscapes.

To have a large part of potential success is a result for having a developed business product that is better from coconut oil product.

What are your ideas based on the criteria that has been discussed above? Are you confident or unconfident? In percentage, how many percent are you confident or unconfident? Give your thoughts.