Doing Proper Due Diligence On A Potential Product

There really arent many rules where conducting business research is concerned. Patience and persistence are necessary to research every angle of a potential product.
Often, a little logic is all you need but there are others where you may have to make a few calls and conduct a little research online before reaching a conclusion on a new product.

A thorough investigation of the product is definitely advised before making a commitment. Without sound research, a faulty product can cause a nightmare that could literally devour your business in the process. Of course, it is likewise true that the right product can launch your company to an unprecedented level.

The library and Internet are good resources to use. It is usually easier to find information on good products with a solid reputation. Most companies are only too happy to brag about a great product.

Evaluation of a Product in 3 Steps

Rely on your experience. All great success stories begin with a person that has knowledge or a great interest in the product theyre selling. Is the product interesting to you?
Will you use it on a continuing basis? What is the life expectancy of the product? Do you know people that are familiar with the product?

Lets examine scrapbook supplies. Everyone is talking about them. Over the years, scrapbook stores and scrapbook courses have been growing in popularity. More and more magazines are listing articles on how to create a scrap- book and where to find materials. If you can think of several people who would purchase scrapbook supplies, its a safe bet you can proceed to the next step in the product research process.

Listen to your friends and family opinion of a product.
Request product brochures from your supplier and pass them onto your family and friends. Ask them to give you an honest opinion on the price, quality, or warranty of the product. Is this something they would use?

Its important that youre not asking your family and friends to buy from you. They must have a clear understand- ing of what youre requesting from them, so they can provide you with an honest answer. The key here is to find out what potential customers are looking for. And by developing a small questionnaire, you can aid your family and friends in properly evaluating a product.

The company making the product will know how well their item does in the market so work with them to find out all they know. It is impossible to believe that they would not conduct their own market research so do not be afraid to ask to see some of it, especially that from current owners.
Look for demographic data of the target audience so you know who exactly you are going to be selling to.

Once youve gathered the basic information on a product, you can then make an educated evaluation of its performance and value in the market. Of course, any good business profess- ional knows that there must be a need for your product in the marketplace for it to be profitable. Take your time to do the research and use all of the tools available.