How to Develop a New Product and Make Magic Happen

14 February 2020

Product development is a vital component of brand marketing that keeps a company’s product portfolio up to date and helps increase revenue.

Companies conduct thorough research before introducing a new product in the market for maximum impact. Read on for some key tips on generating ideas for a new product!

A unique product idea – that grabs a potential customer’s attention – is something all businesses strive for!

Traditional product development ideas often stemmed from studying competitors in a niche and surveying the market. But product development takes a different approach to contemporary business.

How to Develop a New Product and Make Magic Happen:

Here are some effective ways to come up with insightful ideas for your company’s next big creation!

Survey the Market:

To introduce a product in a dynamic marketplace you must decipher the needs of your customer first. You need to keep pace with the economic or technological changes that may affect the buying decision of your customer base.

Identifying the new trends in the market can help modify your ideas and align them accordingly to gain maximum benefits. Any brand marketing agency in your location can provide you with the resources to explore these trends.

Conduct A SWOT Analysis:

SWOT

Most companies realize the importance of regular strength, weaknesses, opportunities, and threats (SWOT) analyses to come up with innovative products. They help identify a business’ strengths, minimize weaknesses, expand on available opportunities — and ward off potential threats to a business or new product.

Coming up with ideas through a SWOT analysis emphasizes the need to build new strengths and seek out maximum benefit from opportunities in the market.

Research and Development Initiatives:

Research the market, competitors, similar products that are already available and consumer trends. Progressive companies allocate sufficient funds for research and development initiatives — to remain ahead of their competitors.

If you are a small company, research the R&D campaigns of established companies in the niche — and adopt one that best suits your market. It is often easier to improve on your competitors’ ideas and improvise.

Value Customer Feedback:

Customers and their requirements are the most important component of new product development. Collecting their feedback can be a challenging task, but pays dividends in the short and long term.

Offer live chat or another interactive communication platform on your business website to answer their queries and keep them engaged.

Short surveys about a product or service can offer valuable feedback to help launch a product that best caters to the target market.

Our Advice:

If product ideas are forcefully generated they can do more harm than good for a product lineup. Skim through the tips in the piece and draft your own strategy for a successful product launch.

With some insight and research, you can come up with ideas for a new product and achieve your business goals. The tips discussed in the piece can improve your marketing strategy and help introduce a product that meets the demands of customers.

How to develop a new product tips still aren’t enough to help you generate ideas, you can hire a brand marketing agency in your location to assist you!

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Lease Vs Buy: What’s Better For The USA Based Business

Small business owners face numerous considerations when deciding whether to purchase or lease a business facility. Once a business owner identifies their specific facility requirements and successfully locates the ideal property, they encounter another crucial choice: Should they buy or rent the property? This decision arises in two distinct scenarios: First, when the owner of the desired property is open to either selling or leasing it, and second when you have multiple options, some available for purchase and others for lease. To make this decision confidently, it's essential to evaluate the financial aspects and the determining factors that influence the suitability of leasing versus buying a business facility. Comparing The Economics Of Leasing Vs. Buying What should you go for when it comes down to lease vs buy for business? In business decisions, few choices are as pivotal as determining whether to lease or buy assets. This holds for many assets, from real estate to equipment, vehicles, and more. This decision can have significant financial implications for business owners, and understanding the pros and cons of leasing versus buying is crucial for informed decision-making. Let’s explore the economics of these two options, exploring the advantages and disadvantages of each to help business owners make the right choice for their specific circumstances. The Economics Of Leasing Leasing, as a financial arrangement, is a concept that extends beyond the realm of property and includes various assets such as vehicles, equipment, and even software. At its core, leasing is a method of obtaining the use of an asset for a specified period while making regular payments to the asset's owner, whether it's a lessor or a financial institution. The economics of leasing involve several key factors that affect the decision to lease rather than purchase outright. One of the primary economic benefits of leasing is the conservation of capital. When you lease an asset, you avoid the substantial upfront cost of purchasing it. This is particularly advantageous for businesses, allowing them to allocate their capital to other essential operations or investments. For individuals, it means not having to deplete their savings to acquire a costly asset, whether it's a car, a piece of machinery, or even a home. Leasing often offers more predictable and manageable cash flows compared to outright ownership. Lease agreements typically involve fixed monthly payments over the lease term, making it easier to budget and plan for expenses. Tax benefits can also make leasing an economically attractive option. In some cases, lease payments are tax-deductible as a business expense. This can lead to significant tax savings for companies. However, tax benefits can vary depending on the asset being leased and the specific tax regulations in place. However, There Are Economic Drawbacks To Leasing As Well: Long-Term Costs: Over an extended period, leasing can be more expensive than buying, primarily due to the cumulative cost of lease payments. No Equity Buildup: When you lease, you do not build equity in the asset. It remains the property of the lessor. Limited Control: The lessee must adhere to the lessor's terms and conditions, which can be restrictive. The Economics Of Buying The decision to buy an asset, whether a property, a vehicle, or any significant investment, is a fundamental economic choice with both immediate and long-term financial implications. Understanding the economics of buying involves considering various factors that impact the purchase decision and how ownership affects one's financial situation. One of the central economic aspects of buying is the upfront cost. When you decide to buy an asset, you typically need to pay the full purchase price, which can be a substantial one-time expense. This upfront payment represents a significant commitment of financial resources and can affect your liquidity, especially for big-ticket items like real estate or high-end machinery. Buying an asset often means having complete control and decision-making authority over it. You can customize, modify, or use the asset as you see fit. This sense of ownership can be economically empowering, allowing you to tailor the asset to your specific needs or preferences. Mortgages and loans are common financial instruments for buying high-value assets like real estate or vehicles. These arrangements enable individuals to spread the cost of the asset over time. While loans may involve interest payments, they make the purchase more accessible and can be financially strategic. However, Buying Also Has Its Economic Downsides: Higher Initial Costs: Purchasing assets often requires a substantial initial investment, burdening businesses with limited capital. Risk of Depreciation: Some assets, like vehicles and certain equipment, can depreciate over time, impacting their resale value. Maintenance Costs: Owners are responsible for maintenance and repairs, which can be costly. Reduced Flexibility: Selling owned assets can be time-consuming and might not be feasible in rapidly changing business environments. Factors To Consider When Making The Lease Or Buy Decision The lease vs. buy decision is critical and can significantly impact a business's financial health and long-term prospects. To make an informed decision, business owners must weigh several important factors. Here are key considerations to keep in mind: Financial Considerations The financial aspect is often the cornerstone of the lease or buy decision. One of the initial considerations is the upfront costs. Buying a property typically involves a substantial financial commitment, including a down payment, closing costs, and potential expenses for renovations or furnishing. On the other hand, leasing usually requires a security deposit and the first month's rent, which are notably lower than the upfront costs of buying. Another critical financial factor is the monthly expenses associated with each option. While leasing tends to result in lower monthly costs than buying, owning a property often entails higher mortgage payments. However, these payments contribute to building equity in the property. Additionally, the potential for property appreciation is a financial consideration, as owning a property allows you to benefit from the property's value increase over time. Conversely, leasing may increase annual rent, impacting your financial planning. Lastly, the tax implications are significant. Property ownership can provide tax benefits, such as deductions for mortgage interest. In contrast, leasing does not offer these tax advantages but may simplify financial management. Long-Term Goals Your long-term objectives play a pivotal role in the lease or buy decision. Buying might be the more suitable choice if you are interested in benefiting from property appreciation and potentially selling the property for a profit. On the other hand, if flexibility is a priority, such as the ability to relocate or change your living situation without the responsibilities of property ownership, leasing provides greater adaptability. Understanding your long-term goals is crucial in deciding to align with your aspirations. Responsibilities and Maintenance The responsibilities and maintenance associated with each option are essential factors to consider. Property maintenance costs, such as repairs and upkeep, are the responsibility of property owners. Leasing, however, often shifts these responsibilities to the landlord responsible for maintaining the property. Moreover, property ownership allows for customization and renovation, allowing you to modify the property to your preferences. In contrast, leasing may come with limitations on modifying the property, as any alterations typically require landlord approval. These factors highlight the practical aspects of the lease or buy decision and the degree of responsibility you are willing to undertake. Market Conditions The state of the real estate market at the time of your decision is a critical external factor. It can significantly influence the cost-effectiveness of leasing or buying. Buying may be more advantageous in a buyer's market, characterized by lower property prices and favorable interest rates. In contrast, leasing might be the more prudent choice in a seller's market with rising property prices, as property prices may be inflated, making buying less cost-effective. Duration of Stay Your anticipated duration of stay in the property is a key factor. For a short-term stay, leasing is often a more practical option. Buying may not provide enough time to build equity and recover the upfront costs of property ownership. Conversely, plan to stay in the property for an extended period. Buying can be financially advantageous in the long run, allowing you to benefit from property appreciation and build equity over time. Making The Decision The decision to lease or buy should be based on your business's unique needs, financial situation, and long-term goals. Conducting a thorough cost-benefit analysis, factoring in your specific circumstances, and considering how the economics of leasing or buying align with your business strategy is advisable. Read Also: How Business Owners Can Better Utilize Freelance Work 5 Office Organization Tips Every New Business Owners Must Know Alternative Business Financing – What Is It And How Do You Do It?

Your Cloud Kitchen Essentials: From Licenses to Restaurant Softwares

The pandemic has been a woe for a few, while a blessing for others. Several restaurants closed down while others have been constantly bearing the brunt. However, during this time taking commercial kitchen on share or cloud Kitchens gained immense popularity as COVID-19 disrupted the restaurant industry. So, What is a Cloud Kitchen? Cloud Kitchens are famously known as delivery-only restaurants. They cater specifically to online orders placed through virtual delivery companies such as Swiggy and Zomato. Cloud kitchens bring with themselves the opportunity to conveniently reach a wider audience of foodies. Sounds simple right? Well, setting up your own cloud kitchen is as uncomplicated as its definition. In this blog, we will specifically dig deeper into the licenses and essentials required to run a Cloud Kitchen. 1. Location: Finding the perfect location for your cloud kitchen shouldn’t be a challenge considering you don’t have to take into account factors such as accessibility, design, and parking, among others. You can opt for a place that is close to your target delivery locations. In comparison to dine-in restaurants, location acts as a prime differentiator for bringing down the cost of investment. 2.Licenses: Obviously, there is always a legal compliance requirement! Obtaining the apt licenses and certifications are important to conduct your business as well as provide customer satisfaction. FSSAI (Food Safety and Standards Authority of India) : FSSAI Licenses are mandatory for every food business operator in India. This license ensures that the kitchen is maintaining the food safety standards of India. After you file your application for the same, an inspection of the premise is conducted. The license is granted within 60 days if the procedure is successfully completed. The cost for a new license ranges between Rs. 2000- 5000. GST Registration: GST is levied on everyone dealing with the supply of goods and services across the country. In order for cloud kitchens to partner with food delivery platforms, they require a valid GST registration. GST Registration is required only if your aggregate turnover exceeds Rs.20 lakhs. At first, you need to file the enrollment form on https://www.gst.gov.in/. After which, you must submit the necessary documents and you will receive an acknowledgment number. The government does not charge any fees for GST Registration. Shop and Establishment Act: All commercial establishments nationwide come under the purview of this Act. You must file for this registration within 30 days of commencing your business. The registration certificate can be obtained by applying through the official website for your state. Registration fees for the same depend specifically on the location of the restaurant. It costs approximately Rs.1000 for a single registration in various cities. Trade License: Trade license allows you to start your cloud kitchen within a particular municipal limit. This helps in keeping up with public health concerns. Trade license fees include a fixed one-time payment along with renewal fees. Fire and Safety License: This license requires the kitchen owners to take precautions in case of the risk of fire. The license is issued within 7 days from the date of application. You can fill out the signup form and get started here- foodlicensing.fssai.gov.in 3. Restaurant Software: While running a cloud kitchen you ought to have a quick automated solution and smart technology. Petpooja’s cloud kitchen software is your one-stop destination for an efficient and user-friendly Point-of-Sale System(POS System). Having a restaurant POS system or a restaurant software aids in integrating online orders, inventory management, customer engagement, employee performance, and restaurant analysis. Given the current situation, it is integral for restaurants to set up their own POS System. It goes without saying that setting up your own cloud kitchen with Petpooja is easy and convenient. Follow these 3 basic steps to set up your cloud kitchen and you are good to go. Reach out to us on 7046223344 or shivani.dad@petpooja.com for more tips and guidance. We would love to help you grow your restaurant business! Read Also: How to Choose the Best Commercial Restaurant Equipment The Basics of Restaurant Equipment Financing Kitchen Renovations Must be Done at Regular Intervals How Restaurant Space Landlords Can Be Successful

Trading Contracts for Differences

The capital markets present several opportunities to potentially make money every day. There are a plethora of instruments to use when expressing your view of future movements regarding specific assets. One of the most efficient ways to accomplish this is to use Contracts for Differences (CFDs). A contract for difference is a security that tracks the changes in another security. The benefits of using these tools far outweigh the costs, depending on your financial goals. What are CFDs: A contract for difference is a security that pays you the difference between the purchase price and the sales price. It is geared to track specific capital market instruments which include currency pairs, commodities, indices, ETFs and company shares. A CFD does not have value like a stock and does not pay dividends like a stock, but it will provide you with the opportunity to purchase the CFD shares as well as sell them without having to post the large capital required by most stock brokers. You also do not have to worry about the borrowing costs that you will incur if you attempt to short a stock via a stock broker. What are the Benefits of CFDs: CFD trading uses leverage instruments. Your broker views your risk as the maximum loss you could be expected to incur daily. They will provide you with leverage that allows you to significantly increase the capital you control. Many CFDs have leverage of up to 20:1. This means that for every dollar you hold in your account; your broker will lend you $20 to trade. CFDs are traded on margin. This means that you need to continue to post capital if the equity in your account falls below a minimum level. For example, your broker might require that you always have 33% equity in your account and when it drops below that level, a margin call is generated. A margin call is a request for immediate funds. If the request is not met, your broker will have the right to liquidate your positions to cover future losses. When to Use CFDs: CFDs are geared to investors who are looking to generate capital gains. This means that you are positioned to benefit if the price of the instrument you are trading moves in the direction that you have speculated on. If you are attempting to generate passive income from stocks, ETFs, currencies or commodities, then CFDs are instruments that do not specifically help your cause. Dividend-producing stocks generally require a large capital layout. Trading CFDs: There are several strategies that you can use to generate revenue from CFD trading. You can develop a technical strategy that provides signals. This can be generated by you. Or, you can purchase an automated process of signal generating from a third party. Before you risk your capital, make sure you implement risk management and due diligence. You can also have a fundamental strategy that is driven by monetary policy, supply, and demand for commodities or an earnings-driven stock strategy. However, if you decide to trade, CFDs will provide you with an efficient instrument to speculate on the capital markets. Read Also: How To Boost The Size Of Your Stock Portfolio Top 9 Forex Trading Tips For Beginners That Save You Money

How to Develop a New Product and Make Magic Happen