Thread by @businessbarista

I have 9 questions for you.

Questions to ask when considering launching a new product.

The hard part of building a business is SAYING NO, but it can be the difference between success and failure.

These questions will help you find your answer with confidence.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟭: 𝗗𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝘀𝗼𝗹𝘃𝗲 𝗮 𝗰𝗹𝗲𝗮𝗿 𝗽𝗿𝗼𝗯𝗹𝗲𝗺 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗮𝘂𝗱𝗶𝗲𝗻𝗰𝗲?

If the answer is no, that makes your decision easy.

If the answer is yes, you're not in the clear.

Keep reading.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟮: 𝗔𝗿𝗲 𝘄𝗲 𝘄𝗲𝗹𝗹-𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻𝗲𝗱 𝘁𝗼 𝘀𝗼𝗹𝘃𝗲 𝘁𝗵𝗮𝘁 𝗽𝗿𝗼𝗯𝗹𝗲𝗺?

Just because there's a job to be done doesn't mean you are best-equipped to do it.

Think about your unfair advantage as a business & if this opportunity leverages it.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟯: 𝗛𝗼𝘄 𝗹𝗮𝗿𝗴𝗲 𝗶𝘀 𝘁𝗵𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗶𝗳 𝘄𝗲 𝘀𝗼𝗹𝘃𝗲 𝘁𝗵𝗶𝘀 𝗽𝗿𝗼𝗯𝗹𝗲𝗺?

Understanding the upside will allow you to think critically about your return on investment.

Investment = money, time, distraction

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟰: 𝗛𝗼𝘄 𝗰𝗼𝘂𝗹𝗱 𝘁𝗵𝗶𝘀 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝗲𝗾𝘂𝗶𝘁𝘆 𝘃𝗮𝗹𝘂𝗲?

Short-term financial opportunity gives an incomplete picture of ROI.

Products aren't created equal. Consider business model, potential acquirers, etc.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟱: 𝗗𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗵𝗲𝗹𝗽 𝘁𝗼 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝘆 𝗿𝗲𝘃𝗲𝗻𝘂𝗲?

Not all new products must drive a different source of revenue.

But understanding exposure to revenue risk is important.

P.S. new revenue source ≠ better revenue source.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟲: 𝗜𝘀 𝘁𝗵𝗶𝘀 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗮𝗹𝗶𝗴𝗻𝗲𝗱 𝘄𝗶𝘁𝗵 𝗼𝘂𝗿 𝗯𝗿𝗮𝗻𝗱 𝗽𝗿𝗼𝗺𝗶𝘀𝗲?

Countless businesses find early success, get excited, and create a hodgepodge of products.

Create off-brand things and your customers begin to question your commitment.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟳: 𝗛𝗼𝘄 𝗰𝗼𝘀𝘁𝗹𝘆 𝗶𝘀 𝗶𝘁 𝗶𝗳 𝘄𝗲 𝗱𝗼𝗻'𝘁 𝘀𝗼𝗹𝘃𝗲 𝘁𝗵𝗶𝘀 𝗽𝗿𝗼𝗯𝗹𝗲𝗺?

Think about downside with every decision you make.

Is it 1 FT employee & $50,000? 3 contractors & distraction?

Understand your downside to protect against it.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟴: 𝗖𝗼𝘂𝗹𝗱 𝗶𝘁 𝗷𝗲𝗼𝗽𝗮𝗿𝗱𝗶𝘇𝗲 𝗵𝗼𝘄 𝘄𝗲 𝗰𝘂𝗿𝗿𝗲𝗻𝘁𝗹𝘆 𝘀𝗲𝗿𝘃𝗲 𝗼𝘂𝗿 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿?

Businesses fail to consider the strain new products put on current employees.

Understand the contagion caused by anything new that you do.

𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝟵: 𝗪𝗵𝘆 𝗶𝘀 𝘁𝗵𝗶𝘀 𝗮 𝗯𝗲𝘁𝘁𝗲𝗿 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝘁𝗵𝗮𝗻 𝗱𝗼𝗶𝗻𝗴 𝗻𝗼𝘁𝗵𝗶𝗻𝗴?

The burden of proof is on you to justify why forgoing focus is the optimal decision.

If you can't answer this final question confidently, the others don't matter.

And that is my framework for evaluating new products and opportunities.

Want a deeper dive into thinking clearly as new opportunities present themselves?

Here's today's Founder's Journal (🎧 ) on the topic...

Spotify: spoti.fi/3vVixBO

Apple: apple.co/3sjAtnw

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