Many of the Concepts Used in New Product Development Can Also be Applied to a Service Business.
I recently passed a self-contained flower shop that had no proprietor. It was outside. The flowers were located in little cubicles with clear glass windows so that you could see the flowers which were beautifully lit. There were instructions on how to pay for the flowers. You put your money or credit card in and the door would open and you could take your flowers to go.
The prices were good because there was not the usual high overhead of a store and salesperson. And you had the gratification of selecting them yourself. Here was this beautiful bouquet of flowers--you could look at them, pick them out, and take them home. Here the new technology of these automatic self-serve compartments spawned a new service--basically, the service of instant flowers.
As you can see, creating a new service business is, in many ways, like creating a large new consumer product. Keep the following in mind:
1. The service needs to be new and exciting, something that will really attract attention.2. Like a new consumer product, a new service business idea is usually borne out of some new evolving need or trend in society.
3. New developments in technology often trigger ideas for a new service business just as they inspire new consumer products.
4. The look and design of the store or office has to be just right to accomplish your goals.
5. You need to think through and decide how the customers are to be treated in various situations.
6. You need to get feedback from customers and provide all the materials needed to test market a successful consumer product.
7. You need to decide how to attract customers and market your business.
8. You will need to create a business plan.
9. You will need to decide how to finance your business and how to attract investors if you need to.
10. You will need to protect your business' name and written materials that you create. So, just as with a consumer product, you will have trademark and copyright considerations.
11. You will want to test the service in one location and work out all the bugs, just like you would test a prototype of a consumer product.
So, you can see that the principles used for consumer products are very applicable to a service business, as well. Good luck with your new venture.
The above article was excerpted from Tarlow's MIND TO MONEY, a cassette tape/workbook package that can help you develop a new product from the idea stage to the marketplace. MIND TO MONEY may be ordered from the Dream Merchant at $59.95 plus $4.95 CA sales tax and$5 shipping and handling ($69.90 total). Send orders to the Dream Merchant, 2309 Torrance Blvd., Suite 104, Torrance, CA 90501.
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