Turn a great idea into a lucrative business with this expert advice.
Do you have the perfect idea for a product but feel lost on how to turn it into a real business? Shark Tank star, real estate mogul, and powerhouse businesswoman Barbara Corcoran has the tips you need to succeed.
Grow Your Idea
This is the first step after your brilliant idea first comes to you, and there are a few things you can focus on to grow your idea in the right way and analyze its viability in the competitive business world. First, determine that there is a real need for the product. Ask yourself if there is anything like it on the market already. Determine how many people out there are looking for a product like yours and would use it. Then, compare your price to the market, making sure that you can produce the product for less than what it's currently going for and ensuring the margins are big enough that you can still make a profit.
Build a Buzz
For many new business creators, this can be a point of discouragement when it seems like you're not getting much traction in the market. Corcoran recommends sending your product to influencers, such as bloggers or individuals with large social media followings, so they can post about it to their followers if they like it. You can also hire people who believe in your product to sell it for you in markets you may not have access to, and pay them commission. However, as your idea begins to catch on and your revenue grows, beware of licensing solicitations - do a lot of research on the licensing requirements for the market you're trying to break into so you don't get duped.
Decide Pricing Points
This can be a little easier to do after you've gotten a feel for the market, the demand, and other people who will be involved in your business. Make your product as cheap as possible while still making a profit in order to pull consumers from your competition, and don't hesitate to do a consumer survey through social media, e-mail, or contacts in order to effectively find out how much people will pay for your product. Don't forget to consider who needs to be paid - whether it's salespeople, the stores you get your materials from, and you!
When you name both your product and your business, make sure that name is unforgettable. It has to be something that people remember when a need for the product crops up, and that they can remember when they need more. Try to recruit others in your field to team up and share ideas. And again, giving free products to industry influencers can be a useful tactic at this later point in your business growth as well - you're losing a product but potentially gaining free advertising. When you have a great idea, there's no reason it has to remain just that.