Do you have a great idea for a new offering to add to your product/service line? No matter how excited you may be, don’t just jump in. Instead, analyze your idea by considering the following it from all angles.
Here are five things to consider.
Five Ways to Analyze a New Offering
1. Will this offering enhance the reputation of your business?
Does it compliment your current offerings? Does it seem like a natural fit or could it confuse customers and prospects.
2. How easy/difficult will this be to add to your existing line of offerings?
Do you already have the staff and equipment to deliver this product/service, or will you have to invest significant time and money? If so, how much? Where will that come from?
3. How easy will it be to sell? Is this something your current customer base will purchase?
Can you use your current sales methods to sell it alongside your other offerings to existing prospects and customers?
4. Will it cannibalize your other sales?
If customers buy this rather than your existing offerings, can you justify that by higher profit margins on the new offering?
5. How profitable will this be in the short and long run?
What is your first year profit after factoring in start-up costs? What do you project for future years?