Businesses need to renew themselves just like their products because there comes a time when sales are no longer increasing in the same way or have stagnated. Before this situation occurs, it is time to think about a new product that will increase sales again and position the brand. Randall Castillo Ortega, the founder of SME investor, provides insight into knowing when to make the right move.
SMEs that have the aspiration to become large companies, must know how to identify when it is time to think about creating a new product and launch it. When deciding to embark on this new commercial journey, keep the following pending:
You must first consider the customers, because they are the consumers. Conduct satisfaction surveys to find out if they would like to try something new. If most of the answers are positive, then already the idea of the new product you had you should put it into development. In addition, you must involve your customers so that you can favor both their needs and yours.
Explains Castillo, “Observing the market can also give us the opportunity. There are times when conditions are created without you noticing and this you must take advantage of. If it happens that your idea for the new release will attack a niche that has opened, then let’s get to work.”
To do this, make a calculation about how big this new market is and how important it will be that you occupy it. You cannot launch a product just because there is an opportunity. You have to first study it so as not to lose the investment.
Another ideal moment is when there is a significant injection of capital or you get new investors. Of course, here, it is not about spending for the sake of spending, but rather about creating a new product with a purpose or goal to achieve.
Starting with what is necessary is known in the entrepreneurship environment as “bootstrapping,” and doing so has its advantages, because although it is true that you can experience greater growth with a strong initial investment, you also assume a financial risk and the stress that this entails; In addition, adding investors to your venture means that the company belongs to more than one person.
Starting a business with little money will allow you to get away from stress and feel the pressure of investors who want to see their money reflected in a short time, different from if the little you have is yours and you decide when to generate the right profits. Also, if for some reason later you have to sell your business, that decision and the money are exclusively yours.
The current economic times, fueled by the global pandemic, have led to the creation of many new companies. Some have started due to need and others have started due to an increase in personal time to create a more desirable and reliable source of income.
The best idea for starting a business is to focus on something you’re passionate about and have a high level of expertise in. For example, if you want to start a podcast and monetize it through ads, you should choose a niche that you are passionate about and about which you have a great deal of knowledge.
Although cryptocurrency is a very popular topic today, it would be very difficult to publish quality content without in-depth knowledge of the sector. On the other hand, if you’re an expert at buying homes, you could create a podcast with tips and useful information. Your passion and expertise will lead to content that adds value, and from there, your traffic, audience size, ad impressions, and revenue will increase as you continue to create content.
Starting a new business is very hard at first: it takes many hours and tedious work. You’ll have a much better chance of getting through this stage if your business involves something you really love and enjoy.