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Make Your Million-Dollar Idea

Part 1 MAKE YOUR MILLION-DOLLAR idea Want to launch a small business designing and manufacturing your own supercool products? What makes your idea rise above the rest? LEARN 7 CRUCIAL STEPS TO CREATE YOUR ROCK-SOLID BUSINESS PLAN AND HEAD FOR STARTUP SUCCESS. PRODU CT DESIGN = $6 BILLI ON IND USTRY Bringing an MVP (Minimum Viable Product) to market can cost between $50,000 and $250,000, depending on the skill sets of the developers and designers you hire. A What's your idea? • Say it in a sentence or two. • What's the purpose/problem you are solving? • Is there a market/need for it? Gnalyze the competition • Are other people already doing it? If so, how? • Try to shoot holes through your idea. Will someone else do it better? A Value Proposition AIM BIG. REALLY BIG 3 • What makes your service or product unique? • Are you just really attached to the idea, or can it actually work? BIG What IDEA differentiates you? That's a key success indicator THE GOOD NEWS? Tons of cool, exciting products are hitting the market. THE BAD NEWS? Nail your value proposition and demand attention! The smaller you are, the higher your value proposition needs to be. BUILDING BRANDS TAKES A LOT MONEY AND/OR CREATIVITY. SETTING THE STANDARD Timbuk2 Starbucks High value proposition, savvy marketing, and tight supply chains Customized bags sewn locally and shipped Ethically sourced coffee, responsibly grown and trad 2 business days Birchbox Apple Elegant and simple designs, easy functionality - makes life better Betabrand Redefining brand discovery-beauty-sample Crowdfunding and user-generated product ideas subscriptions 4 Market opportunity • Is your product idea universally appealing or niche? • Use the "gut check" if you can't afford market research. - Profile your target market. - Google, Google, Google! - Visit stores to gauge price points and packaging. - Back up your "gut check" with public information from sites such as Pew Research's "FactTank." VOLUME VALUE Margins: A VOLUME VS. VALUE QUESTION • How many products do you need to sell to make a profit? • Pay attention to your profits. Higher profits per unit sold can be a safer bet. GROSS MARGIN (%J= [REVENUE - COST OF GOODS SOLD) + REVENUE A high-priced, high-value, low-volume item could be more profitable than a low-priced, low-value, high-volume product. Even though the cheaper item has a higher margin, profits are not as high, which means you'd need to sell more. Example: A high-end laptop bag sells for $180 but costs $65 to manufacture; Example: A computer accessory cable sells for $9.95 but costs $1.15 to manufacture; gross margin = 64%. gross margin = 89%. DETERMINE YOUR MARKUP 50% = AVERAGE SMALL-BUSINESS RETAIL MARKUP SELLING PRICE [ITEM COST ÷ (100 - MARKUP %)] × 1ØØ x2 24 Balance prices by marking some items up slightly higher to Don't overlook freight costs! Add the freight cost before Doubling the price may sound outrageous, but it's realistic when you consider the expenses for rent, taxes, insurance, supplies, labor, etc. compensate for the lower-marked items. you apply the markup. 6 Protatype • Making a prototype by hand is a great way to bring your product to life. Get Crafty • Use household items to test the product. Plastic Prototypes • Check out Shapelock. ONLY $14.95 PER CONTAINER. Injection Molds • Manufacturer injects metal, glass, elastomer, confections, or thermosplastics into a mold. • Costs $10,000 to $100,00. Microwave or blow dry the plastic to make pliable like clay. Mold and shape it into your prototype. $ 10,000 $ 100,000 Dries as hard plastic. Reheat and reuse. Rapid Prototyping Manufacturers & Distributors • Stereolithography (3D printing) creates solid, • Database of 610,000-plus FEW HUNDRED DOLLARS. plastic 3D objects from CAD drawings in a manufacturers, prototype developers, distributors, matter of hours. and service providers in the U.S./Canada. • Costs as little as a few hundred dollars. Geography New-shoring: Make it close, sell it close. The smaller you are, the more sense it makes to invest in a somewhat local supply chain you can know and control. TOP 3 REASONS FOR NEw-SHORING SOLD 37% 31% 26% Speed-to- market Lower inventory costs Lower freight costs • Industries with the greatest likelihood of new-shoring to the U.S. are: Transportation goods (e.g., automobile and aircraft parts) • Appliances and electrical equipment • Furniture • Plastic and rubber products • Machinery • Computers and electronics • Fabricated metal products Now you've got the building blocks. If you've passed these tests, then you're onto something cool. Stay tuned for the next in this infographic series on the logistics of your manufacturing process (sourcing components and materials, packaging, QC, etc.). VISIT LINESHAPESPACE.COM LINE/SHAPE/SPACE A AUTODESK. | | D7B8/253/Graebel_Whitepaper_Offshoring_HR_1572214820.pdf n-boost-business/ r-onshoring/ ttp:// eauty-startup-birchbox/ !rP4kz d-markup-and-margin-HA010132955.aspx 1B

Make Your Million-Dollar Idea

shared by Lemonly on Mar 18
Whether you’re an inventor, product designer, or entrepreneur wanting to bring an idea to life, this infographic may be for you. Our latest infographic with Autodesk’s small business blog, Line//S...





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