Considering small business funding to add a new product or service to your business? Great! Finding new and interesting services and products is one of the best ways to stay relevant in a perpetually changing marketplace. A new product can unlock profit streams you never imagined, but it might also pull your focus, and should it fail to catch on, could cost you. How can one avoid that kind of pitfall?
As anyone who has started a business knows, ambition and growth require risk. That risk is both personal and financial, meaning your funding for small business investments will be dedicated to a risky venture whether it succeeds or fails. The fear of new ideas failing leads many businesses to maintain a safe strategy instead of reaching for a bigger consumer base.
In an effort to safeguard your business from bad decisions without stifling growth, here are some ways to test a risk before you invest business funding in it:
- Survey Your Customers: Ask customers, either in person or with online surveys, if your new product or service idea interests them.
- Look at Similar Businesses: Whether they are your rivals or just a similar business in a different town, checking in on businesses that have taken a particular risk prior to you is always a good idea.
- Do Not Let Something New Take Away Focus: Your business is only as successful as it is because of what you made it. Be sure to maintain that quality and consistency.