Product Selection For Business And Startup.
In this article we shall outline the various methods used for product selection for business or startup. It is important for every business or startup to identify the focus product of the business, if your business or startup has no defined product, it becomes hard or difficult to succeed.
Now let us explain in detail the term product selection.
¤ We define them as a resulting output which was transformed from selected ipnut or the effort transformed into an output.
¤ Anything that can be produced, manufactured or a service that can be rendered which was altered from its original way and transformed into an advanced state e.g extracted crude refined inorder to get petrol or kerosine.
¤ Anything that can be presented to the public market space for use, acquisition or consumption.
THE NATURE AND CHARACTERISTICS OF PRODUCT
As we all know, a product is the outcome of an input that was transformed into an output. In this case input can be transportation, materials, the methods used, work manpower or workforce, money and machines. These items mentioned above are transformed into an output. Transformation is the process were raw materials are changed into semi finished products which is the output of the final product.
” Product must provide solution to the user or consumer”
The characteristics of products may be the weight, the operational effectiveness, maintanance and size. The Product must stand for profit or survive the test of competition. It must satisfy the want of the consumer.
THE CRITERIA FOR PRODUCT SELECTION
As a startup or existing business, when selecting a new product to acquire for your business or a product you want to produce, there must be a relevant selection criteria compiled and distributed to the sales force.
Now you can make use of this to compare the various product offerings and also create a shortlist with products selected for further evaluation. During the process of the product selection, you should be able to identify the various products that are expected to meet the requirement of the market.
THE FACTORS THAT ARE ASSOCIATED WITH PRODUCT SELECTION FOR BUSINESS AND STARTUPS.
A business or startup should know these things and work on them properly. The factors include;
¤ The legal aspect of the business. The legal issues that are associated with your business.
¤ The availabilty of raw materials needed or related with the product you’ve choosen to produce.
¤ The use of latest technology for your business. For your business to strive and become successful, you need to make use of latest technology of course your competitors are already using.
¤ The Business infrastructure
¤ The Government policy in your area and its regulation.
As a business or startup, what you should know, the moment you select the product you want to produce, you still have to carry out further research to know the process of production and other government requirement on licenses.
IDEA GENERATION FOR BUSINESS PRODUCT FOR BUSINESS AND STARTUPS
As a business owner, the basic thing you should do is to know the type of product currently offerred in the market. Yeah, this aspect is kind of difficult for businesses to actualize. However it is important to do so, know what is offered already, your potential rivals and competitors. Carrying out research to find new idea for product you can produce is important for the success of your business. There are several ways you can use to identify a new product idea. However if businesses can provide a valuable product idea properly evaluated, executed, it will go a long way in securing the success of the business.
SOURCES OF GENERATING NEW IDEAS.
(A) Mass Media
(F) Being Creative
(G) Business Exhibitions
(I) From your personal skill
(K) Existing companies.
Well, these sources listed can still be difficult for generating new ideas. You can also do things like testing the ideas you’ve generated and see if it will work.
Brainstorming: it is the process or the technique ised to create problem solving as well as generating ideas.
THE STEPS INVOLVED IN STARTING THE PRODUCT SELECTED FOR YOUR BUSINESS.
There are no guarantees that a business venture or idea willl work. You can plan but if the planning is not concrete enough, the venture will fail. Assumptions can be a critical factor in developing your venture. Many startups, entrepreneurs fail as a result of making assumptions that cannot be realized. You should define every aspect of the venture, try to make sure if it can be a relistic venture. Making assumptions that cannot be realized is a total waste of time. inorder to have confidence in the design of a business, you should try to define each level, and other factors necessary to help you reach the next level of the objectives.
Starting your business, you need to have that confidence no matter the obstacles you face , you can still stand to achieve your set objectives. So yo need to examine the factors that are important in helping you achieve your objectives.
THE STEPS INVOLVED IN PREPARING PRE-FEASIBILITY STUDY.
1. The management approach to feasibility study: There is one thing researching about the business you are going into and there is the aspect of ideas you’ve gotten, sometimes you may have gotten the right ideas and procedures but you decide to go the other way round. So inorder for you to achieve the objectives of the business you are about to start, you should;
(i) Try to understand if the business will achieve its set objectives
(ii) How can you improve on it as time goes on or taking it to the next level.
(iii) Wether you can still achieve it if you are low on budget.
(iv) The benefits that will cover the cost.
2. How the business can succeed and how it can be improved: These are questions that are important to business or project. I believe during your research, you also asked these questions, because you need to have an idea of its success and some possible cause of its failures.
If you have an idea of the factors that may cause the business to fail, then you can avert it. Therefore it is important to note this.
3. How to analyze the assumptions you’ve made for the business: Now ensure that you’ve identified all aspects of the business, ask questions and know more factors that could prevent you from reaching the business objectives. You can look at the factors such as;
(A) Managerial Factors
(B) Financial Factors
(C) Cultural Factors
(D) Political Factors
(E) Technical Factors
(F) Market Factors
(G) Cost Factors.
Now let us dig deep into the list above and explain the types of assumptions.
¤ Managerial Factors: You should try to know the type of training you need inorder to run the business smoothly.
¤ Geological/Climatic Factors: Identify if the business will in anyway affect the environment you are, would it destroy the ecosystem.
¤ Financial Factors: Know where to find funds to run the business, also how to control the money i.e money management
¤ Cultural Factors: Try to know if the business fit the lifestyle of the people
¤ Political Factors: Try to know wether the head in government in that area supports your business idea, license and inspection needed.
¤ Market Factors: Though you may not be able to predict such scenarios but the period when your product has launched, does the populace in that region have enough income to dispose? And also can you reach your customers and make good profit.
¤ Cost factors: Understand the cost it will take for production, the amount you will spend on your labour force and the total amount of repeated cost are likely to occur.
¤ Technical Factors: The technology use make us of for production, if it can be maintained. Are replacements parts easy to obtain? Try to know these problems, knowing this can help you.
THE TECHNICAL ANALYSIS FOR PRODUCT SELECTION.
In this apect, you should stry to evaluate the facilities for the product selection, the technology for the selected product and how to source for raw materials for the product you’ve selected.
1. Waste Disposal
(i) Provide in detail the quantity your business will dispose.
(ii) The method, place and how much it will cost.
(iii) Waste disposal must comply with environmental protection requirement and should be done legally.
2. Business Location
You should draw out a map of your area showing the location of your business. You can also do it online via google my business or any other business directories available on the internet.
There must be a description of your product such as the materials used, the function and user description.
4. Business size and schedule of production.
Provide a description of the size of the business and the productin schedule.
5. Acquisition of raw materials.
(i) Describing the physical and mechanical properties.
(ii) You should provide an overview of the cost of the raw materials you are using for production including the source of the raw material.
6. The impact of your business on the environment
(i) You should have an insight of the impact of your business on your environment.
(ii) The type of technology you make use of in your business.
7. Equipments and machines
Describe the type of machines you have, the capacity and how you are able to run them on your day to day business activities.
8. Product processing activities
Show a description of the product processing produres, show a comprehensive list of materials and energy required.
9. Labour requirements
(i) Skilled and unskilled labour requirements.
(ii) Managerial and technical staff requirement.
THE EFFECTS OF GOVERNMENT POLICY AND REGULATIONS ON THE BUSIINESS PRODUCT SELECTED FOR PRODUCTION.
What you should understand is every business requires permission to operate in any given area. Your business may require permission, license before you start.
THE ENVIRONMENTAL IMPACTS ANALYSIS OF THE BUSINESS.
Whenever you want to start your business, you should consider and analyze the impact of production process on the environment you’ve choosen for the business. Try to find out the negative effects of the business in that environment and look for ways to either control it or eliminate them.
Take these into account;
(i) The liquid waste from your business
(ii) Any solid waste
(iii) Air pollution
(iv) Chemical Reactions
(v) Hazardous materials
2. Environmental degredation.
3. Health risk.
(i) The health risk of staffs and workers in your business.
(ii) The possibility of increasing already available risk
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