New Product Introduction

M checks in to clarify the process of business start-up:

On Jan 28, 2013, at 11:01 PM, Mi wrote:

Hi John,

My name is Mi and I was a student In your import/export class.

Though the class ended in December, I wanted to ask your advice on how

to best pursue a business concept.

***Hi Mi***

The fact you emphasized that we think of a solution to a problem has

enabled me to really look within my passion and I believe I finally

answered the question for myself and have come up with an idea and

have a customer in mind.  I have researched and interviewed clerks at

Nordstrom, Sephora, Macy's and know that there is no such thing in

existence.  I have a design in mind as well.

***Very very good... many do not get even this far....***

My question is what is the best way to go about identifying  the

buyers and decision makers of these high end retail stores and set up

time to review my concept with them?  Would this be my next step or

would you suggest building a prototype to present to them first?

***Very important point... these people are busy doing what they do, and reviewing concepts is not in their work.  The fact that you've spoke to clerks is in itself "concept review" work.  The validation you need, what you want, is validation sufficient to encourage you to take the next "risk" and that is getting samples of what your design, now validated.  You may simply need to speak to more clerks... and remember, the validation is 2 part:  it's a good idea and does not exist.  Did they think it is as a good idea?  That is as important as "does it exist?"

And recall, when you are looking for suppliers, your greatest recommendation will be the stores you can name that said "it is a good idea and does not exist."***

There are points I would like to quickly get validation on:

1). Will the concept sell in their store given their customer

preference and gage their interest

***They will never know that in advance, and could not tell you.  Recall that the specialty store buyers first question is "what is new?" and second question (if they like it) "what is your minimum."  Buyers never have any idea whether something new will sell.  They test everything and manage risk by buying a tiny test order to start.  That is the bad news.  The good news is they all order tiny test orders to start. so you can amalgamate enough orders to cover your suppliers minimum, and then you are in business.***

2). Initial gage on timing & orders so i can decide how to best build

& develop prototypes

***  As you develop prototypes,with the best factory in the world, they will inform you of timelines, lead times, prices, all of those details.  So the process is validation from the stores as you try to "buy" your idea from the retailers who are your target market, and once sufficiently validated by your inquiries, you find the best supplier in the world, and create the item based on your initial idea enhanced by the retailer conversations in this initial validation phase.  I am being wordy because people have a hard time maintaining discipline and as actors say, "staying in the role."  Someone goes into a store as a "customer" trying to buy their idea, and the clerk says "it is a good idea and does not exist..."  and all of sudden this "customer" steps out of role and tries to sell to the clerk the idea, when the "customer"  does not even have a source yet.  Just take your time, do each step thoroughly, and you truly cannot lose.  No one ever loses going down this path, just some people quit for whatever reason.  (I find usually lack of passion and joy in what they are pursuing.)***

I would greatly appreciate advice on my next steps.

***Advice:  make sure you are sufficiently certain that there are enough stores with people who say "it is a good idea and does not exist" for you to go into the next phase, which is to develop samples with the best place in the world.   So you will disappear for a while as you get samples and all of the info you need to make a run at milestone 3#: enough orders from retailers collectively to cover the suppliers minimum order run, in a workable amount of time, profitably.***

John

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