As a service professional what steps do you take before investing in the development of a new product or service?

“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.” -Sun-tzu, The Art of War

Innovation has an opportunity cost of both  time and resources.  So what criteria should you use to  determine the value of developing a new product or service?  Defining the market in great detail IS THE MOST IMPORTANT. Nothing else really matters.

TELL A STORY

You need to be able to identify the market in terms of a story or narrative. Eben Pagan and John Carlton suggest creating an "Avatar" of your best customer for the product. With this Avatar or narrative you will know what pain your product or service will satisfy, where to advertise, how the buying decision is made, and how long the sales cycle will be.

HOW TO DO THIS?

Survey potential customer pool. Use industry Data and Statistics. Organize A Focus Group. Use creativity when writing (YES WRITING) the narrative. And don't forget to include pictures, schedules and family profile. The better you know the customer Avatar the better you'll be able to market and sell to your potential customers.”

Some other ideas:

• Clearly state how it will make money or save money.
• Develop a list of 100+ potential buyers and clearly know where they can be found.
• Is the price of the service something the buyer can bear.