Small Business Q & A: How To Tell If Your Amazing New Product Idea Is Really Worth Gambling On

Q: I have a great idea for an amazing new product. There is
nothing like it on the market and no competition that I can find.
I think it will be a huge success and so does everyone I tell
the idea to. I'm willing to bet the farm on this one. What do
you think my chances of success are?

A: I'm a lousy poker player, mainly because I can't help grinning
like the village idiot when blessed with a winning hand or
frowning like a sad clown when dealt a dud.

I also never make odds on the success of "amazing new products"
because more often than not the only thing that's amazing is the
way the product is totally ignored by the buying public.

In my software business there have been times when we came up
with what we thought was an amazing idea for an amazing piece of
software - a piece of software so amazing, in fact, that we knew
that all mankind would sit up and take notice, then line up to
write us checks.

After hundreds of hours and thousands of dollars spent
developing the product we were amazed to find that the only
people who thought the software was truly amazing was us.

We made mankind yawn. Quite an amazing accomplishment, if I do
say so myself.

It worries me that you say there is nothing like your idea on
the market. While you may think that is a good thing, it might
actually mean that there is no market for your product. The
same holds true for a lack of competition. A total lack of
competition might mean that there is no demand for such a product.

Rarely does a product come along that revolutionizes an industry.
Rarer still does a product create a new industry on its own.

So, how can you tell if your amazing new product really is
worth gambling on? The truth is, you can never be 100% certain
that your idea will sell. No matter how enamored you are of it
or how much your friends rave about it, the success of a new
idea depends on a number of factors, many of which are beyond
your control.

Such factors include:

·The viability of the idea: is this really a product that
you could build a company around? Does the idea have the
potential to generate revenue or customer loyalty?
·The people implementing the idea: the right team can make
even a mediocre product a huge success (ever heard of Windows).
Inversely, a bad team couldn't sell ice water in Hades. Pick
your team carefully. The right people really do make all the
difference.
·The demand for such a product in the marketplace: will this
product fill a need or satisfy an itch?
·The competition: is the market already crowded with
competitors? If so, what will it take to move your product ahead
of the pack?
·The depth of your pockets: even an amazing product requires
a ton of cash to go from drawing board to store shelf.
·The availability of other resources required to take the
product from the drawing board to the consumer: do you have the
time, the drive, the perseverance, the knowledge, the contacts,
the support, and a hundred other things required to bring your
amazing idea to fruition?
·The list wouldn't be complete without sheer luck and timing.
·And a thousand other things.

Before you invest too much time and money into your idea, do a
little research to determine if it's an idea that's really
worth gambling on:

·Research the market for similar products. Again, if there
are no similar products on the market that might mean there is
no market for that product. If there truly is nothing exactly
like your product, research similar products that fill a similar
void in the consumer's life. Learn all you can about such
products: pricing, market share, track record, etc.
·Research the competition. As mentioned earlier, if there
is no competition there may not be a market for a product like
yours. If there is competition, research the competition fully
(little guys and big guys) to help determine if you can
realistically compete for market share.
·Identify your target customer and ask them for an honest
evaluation of the idea and its marketability. Avoid friends and
family as they usually just tell you what you want to hear.
If your target customer is a 35 year old female, pitch your
idea to every 35 year old female you meet and gauge their
response. Just don't break any stalking laws in the name of
market research… :o).

The best advice I can give you when it comes to amazing new
product ideas it's best to follow your head and not your heart.

It's a lesson that took me years to learn. If I had a nickel
for every amazing new product I've invested in I'd go play a
few hands of poker.

Here's to your success!

Tim Knox
tim@dropshipwholesale.net
For information on starting your own online or eBay business,
visit http://www.dropshipwholesale.net