When you have a great new product idea, you probably can’t wait to get started with the development and introduce it to your customers. I would like to share with you 3 Mistakes you should avoid when starting a new product idea.
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Mistake One: you don’t create a project briefing
Before you go full speed ahead, it’s wise to spend some time writing a project briefing. In this briefing you define how you’re going to execute this project from start to finish. How much time you estimate it’ll take, how much budget you think you need, but also which disciplines you need in your team to make this project a success.
By writing a proper project briefing, you’ll be better prepared and equipped with the right resources and fundingwhen you start developing your product.
Mistake Two: you don’t create an overview of estimated costs
You’re able to make a good estimation of all the costs you’re going to need to make to get your product developed, produced and in the hands of your customer.
Sample costs, engineering costs, testing costs, product design, packaging design, software development, lab costs, certification costs, transport costs, training, marketing & communication materials, social media, ads.
Enter all these cost elements in a spread sheet like Excel and calculate the total costs. You need to have an overview of all these different cost elements to monitor your project spending and to take corrective action when financials do not look so good.
Mistake Three: you don’t calculate the profit margin and earn back time of your new product idea
Before you start developing your new product idea, you need to know whether you’re going to earn money. By creating a spreadsheet where you enter the estimated quantities you think you’re going to sell, the sales price, the cost price and the development costs per product, you can calculate the gross profit margin and earn back time of your investment.
When you avoid these three mistakes, you give your new product development a good start!
Go get organized!
I have a FREE Excel template for you to get started with your project action list.
Click here to get your free download.
If you like to listen to more project management tips for product-based businesses click the link below to tune in on my podcast From Product Idea to a Thriving Business.