After a long workday, you’re on your way home. During the journey, you have time to think, and suddenly something pops into your head: a brilliant idea for a new product! Ideally, you’d make it a reality that very evening.
The process from idea to market introduction can be overwhelming. Fortunately, a good step-by-step plan will get you a long way. In this blog, we explain what you need to do when you have a new product idea.
We will go through the following steps:
Would you like to make your idea a reality? Then join us for a cup of coffee and let’s discuss the possibilities.
1. Investigate the feasibility of the idea
It all starts with the question: what is the feasibility of your new product idea? Answering this question is an important step in determining whether your idea is not only innovative but also viable. To find out, you conduct market research. See if your new product idea already exists, who your competitors are, and whether (potential) customers actually need your solution.
Tip: We recommend conducting the market research yourself. Although it may take some time, you will gain valuable insights into the market and the needs of potential customers. By researching the current market, you can even refine your product idea into a unique variant. This way, you immediately create your unique selling point (USP).
2. Be aware of the necessary requirements
Before the product is manufactured, it’s wise to check if there are any product requirements. For example, there are specific requirements for food, chemical products, or cosmetics. Additionally, in most cases, you will need a quality mark or certificate for the product that proves it meets certain standards. Lastly, in some cases, you must comply with environmental regulations.
Don’t let this discourage you! There are many product developers who have extensive knowledge in their niche and are happy to help you with this. For example, our specializations include apps, hardware, software, industrial design, data, and cloud solutions.
3. Collaborate with a product developer
Realizing a new product is often not something you do every day. It is therefore wise to enlist the help of the right people. Does your new product idea involve developing a concept or prototype? Then it’s a good idea to involve the right partner for this from the start. Collaborating with a product developer is not mandatory, but it does provide you with a sounding board who can offer advice on feasibility, product requirements, financing, and registering your idea. Additionally, a product developer can contribute to the concept and develop the prototype for you.
Have you found a partner? Then don’t forget to draw up and have them sign a non-disclosure agreement (NDA). This prevents your new product idea from being made public. We will discuss protecting and registering your idea further in step 6.
Curious about what we can achieve together with you?
4. The financing of your new product idea
When realizing your new product, you will incur various costs, such as for the development of the prototype and the actual production. It is therefore wise to prepare a budget in advance of the costs you expect to incur and how you intend to pay for them. For example, you can choose to finance part of it yourself and obtain another part through external funding. Additionally, there are various subsidy options and tax schemes that can cover a portion of the costs.
Tip: A product developer can advise you on the amount of investment required and the various possibilities.
Subsidy options and tax schemes
The government offers various subsidy options that depend on the industry in which you operate and your innovation. With the subsidy and financing guide of the Netherlands Enterprise Agency (RVO.nl), you can check which subsidy schemes you are eligible for.
In addition, the government offers several tax schemes. With these, you do not receive money upon investment, but you pay less tax later. When you have a new product idea, the following tax schemes are interesting:
- The innovation box: Thanks to this tax scheme, you have to pay less corporate income tax on profits from innovative activities.
- Innovation credit: The government offers a loan for part of the technical development costs of a new product, service, or process.
Additional financing
If you opt for external financing, it is important to have a clear and realistic story to present to the investor(s). Both your idea and the required costs must be clear. The following options can be considered for external financing:
- Crowdfunding: Through crowdfunding, you can raise money for your new product from a large audience. This way, you not only obtain financing, but you can also immediately see how well your idea is received.
- Loans: You can apply for a loan from the bank for your new product idea. This often requires a detailed business plan and proof of the potential profitability of the new product.
- Angel investors: These are individual people who invest in new products, (often) in exchange for shares in the company. Angel investors in the Netherlands can be found on the website of the Business Angels Network Netherlands (BAN). This platform connects networks that bring investors and entrepreneurs into contact with each other.
5. Create a prototype of your new product
A prototype is a tangible version of the new product and perhaps the most important (and fun) part of product development. It shows whether your idea is feasible and how your concept functions. A prototype can also be used to determine whether the product is financially viable.
Additionally, you can use a prototype to test the initial reactions of users. Does it meet their needs? And would they actually want to buy the new product? The feedback provides you with more clarity and certainty for attracting further funding.
To have a prototype of your product designed, you need product developers. They realize your idea and test it directly with the target group. This allows them to immediately collaborate with you on making any necessary adjustments. This aligns well with Beeliners’ approach. At the start of the development of a first prototype, we look at the showstoppers and resolve them first.
Then, we can define a plannable project. This reduces uncertainty in the development process and provides better control over development costs. We also use an agile methodology. This means that we constantly ask for feedback and make adjustments where necessary. This allows us to continuously refine your new product idea together into a prototype that fully meets your requirements.
6. Register your new product idea
It goes without saying that you don’t want someone else to run off with your new product idea. That’s why it’s important to protect your new product with an intellectual property right, in addition to the aforementioned non-disclosure agreement. This protects the product against counterfeiting, among other things. We recommend doing this once the prototype has been developed, as you cannot protect a standalone idea.
Intellectual property consists of various types of rights. There are rights that you need to register yourself and rights that you receive automatically:
Rights you can register:
- Patent right: Also known as patent law, this right protects a technical invention. You don’t get a valid patent easily. An invention must have a technical character and meet 3 conditions: inventiveness, novelty, and industrial applicability. On this page of the Netherlands Enterprise Agency, you will find all current information and conditions.
- Trademark law: This protects the name and/or logo of your organization, product, or service.
- Design right: With the design right, you can protect a design.
Automatic rights:
- Copyright: Texts, photos, and software are protected by this.
- Database right: This protects data against retrieval and reuse in databases.
- Trade name right: This protects your company name.
If you choose to collaborate with Beeliners, the intellectual property rights remain with you. However, we are happy to help you arrange the correct rights and the associated paperwork.
7. Gather user feedback
We already mentioned this in step 5, but before you bring your product to market, it’s important to test it. You do this by presenting the prototype to a larger group of users. During these so-called field tests, your new product will be actually used, and you can see if users use it as you intended and what the initial reactions are. This way, small errors, such as design flaws, incorrect usage, or unforeseen circumstances, can be quickly discovered. You can then improve these before you bring the final product to market.
8. Choose the right producer
The prototype has passed the tests and is ready to be produced. It’s your task to find the right producer for this. This is an important strategic choice for your product. A producer and supplier(s) influence the quality, delivery, and production efficiency. Some things to consider are:
- Production quality: Can the producer meet your specifications?
- Scalability: Is there a possibility to scale up if the demand for your new product increases?
- Costs: Do the costs of the products fit within your budget?
Of course, you can also choose to produce or assemble the product yourself. In that case, it’s not about choosing the right producers, but about the right suppliers.
A product developer like Beeliners can often help you find a suitable producer and/or supplier(s) thanks to their experience and connections.
9. Bring the product to market
The time has finally come. Your new product is ready to be produced and can be brought to market. Before you take this step, you determine the price of your new product. In most cases, this is based on the costs you incur for its production and what your customers are willing to pay for it. You also determine how you want to sell the product, which sales channels you will use, and how you will use marketing to effectively reach your target group with your product.
Bringing a product to market is not just about the product, but also about your organization. Beeliners helps you get your product ready for the market. Although we do not help with the production of the new product, we can advise on the necessary organization, such as setting up after-sales, service, and maintenance.