Tuesday, December 7, 2010

a product or a service?

I beleive that every young entrepreneur should start with a product. Something you can see, touch, feel, taste. Why is this? I have learnt that people get much more excited by something that is real, rather than a concept. When I lecture at RAA course for young woud be entrepreneurs i always tell them that the final presentations should be with real prototypes. They will have though about a creative idea like the recycled computer biltong drier or the shower kettle or a builders hard hat under-cap, and they need to show everyone what this product in its most basic form will look like. Those students who choose services or products that are more IT based find it difficult to explain and showcase. A product also provides the discipline of costing properly, which leads to more accurate sales prices. With the stick fighting company i have the following products. I have sticks ( 2) and a list of rules ( for sale at R60 ), I have corporate workshops ( for sale at R3,000 for 30 minutes in the boardroom), I have padding, helmets etc, I have tournaments ( for sale to sponsors at 12 tournaments for R350,000 sponsorship in 2010), I have a coffee table book, I have a reality TV show, and I have a non-profit trust that will raise funding for young boys to learn the skill by older men. All great products! I beleive that once someone has cracked a product and all the hard work that goes into it, a service becomes a lot easier.