This is the third installment in our series about Building a Business Case, which covers points that provide guidance and direction to entrepreneurs.
See the complete Building The Business Case document.
Where in the world do you plan to sell your product / technology / service?:
Sure, you can envision people using your product at their business or facility, that’s easy. But really, where are you going to sell it? It’s not like you can set up a table in front of the local WalMart and try to convince the passers-by to purchase your product with the loose change in their pockets. Take the time to consider the possibilities and do research to find out the best route for you to market your product.
Are there regulatory and/or certification requirements pertaining to your product / technology / service?:
It is important to find this out as early as possible and design your products based on the requirements. It is really pointless to do or plan anything until you know what these are. “Well, how am I supposed to know what the requirements are?” you may wonder. Check out the FDA website, FDA.gov if your product is a medical device, pharmacutical, or food. For other types of products, try the websites of the regulatory organizations in that market, such as the FCC, or HIPAA. If all else fails, ask people in the industry for guidance.
What is the size of the market(s) for your product / technology / service?:
This could determine how much you are willing to put into your project and if it is even worth the effort to pursue your idea. For example, manufacturing snow shoes specifically fashioned for The Abominable Snowman might sound like a brilliant idea, but the market is so small, not to mention hard to locate, that you’d be hard pressed to sell any, let alone make a profit.
In the next post on this topic, I will cover the last three points in Building a Business Case which involve considering competitive products and patents. For the previous blog posts in this series see:
Building a Business- The First Step
How Well Do You Really Know Your Market? The Next Step to Building the Business Case