As an entrepreneur, you have trained your mind to find solutions to some of the gaps that exist in your world. When you finally find THAT solution, the excitement of its prospects tends to cloud your judgement a great deal.
Yes, we certainly are the 'crazy' ones as Steve Jobs calls it, but in order for our crazy to be truly valuable to not only ourselves but the world around us, its important to consider a few critical steps to help cement our wonderful impact in exchange for some cash to make up for all the labour we have gone through. The solution? Market testing.
Before going out to test the market that you are solving for, you certainly need a tangible reference that this very market can give you solid feedback on. A product prototype, is exactly that. When looking at your idea, a prototype document will either be developed or evaluated depending on what you bring to us. Such a document should thoroughly discuss the following key areas to further aid the product formulation of your new business offering as optimally as possible:
Detailed product description
Production cost and mark-up
Different pricing scenarios
Product cost vs. Product value
Supplier Analysis
Viability report
Market Analysis
This document should further provide traceable metrics from which key decisions about the product offering can be made prior to not only testing the product, but also launching the product officially.
If you are still not convinced on the need for testing the market with a product prototype, check out this article that may convince you otherwise: 5 Creative Ways to Test-Market a New Product
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