As a business grows the question of the introducing new products/services arises. Launching new products/services means taking risks and managing change. Growth and change must be managed at the same time as ongoing business operations.  Maintaining momentum is challenging for small businesses with limited resources.

The business owner looking to introduce new products/services should carefully consider:

• what is the market demand?
• do customers need the new products/services?
• does the business have manufacturing/servicing, production, storage and distribution capacity and capability?
• can warranty and service requirements be met?
• what is the competition in equivalent products/services?

When a new product/services is being considered, a business case should be prepared in order to weigh up the pros and cons of the new venture.  Importantly, as well, the return on investment to the business must be calculated.

The business case should include, but is not limited to:

1. Confirm  customer needs and requirements – understand the market
2. Define the product/service and its unique selling point(s)
3. Design (conceptual) or detail the product/service – including quality, safety, compliance and functionality
4. Identify suppliers and understand material supply issues
5. Decide whether to  manufacture, assembly or purchase
6. Calculate the cost of manufacture – including procurement, materials, labour and plant
7. Calculate your price for the product/service – what will the market bear? Is the new product/service commercially viable?
8. Evaluate storage and distribution capacity and capability
9. Calculate lead times to get the product/service to market
10. Identify risks associated with lauching a new product
11. Consider interal impacts including staff, financial, other constraints
12. Calculate total cost to the business and expected ROI.

New product/service development should be indentified in the strategic planning process 

Consult the local Business Advisory Service  for support when considering the introduction new products/services.

AusIndustry programs might also be able to assist.