Your product or service is arguably the most important aspect of your entire company. The product must accomplish these things:
There should be a good answer to the question of why this product or service should exist. That means that the product or service should be of some benefit to someone. The product or service can solve a problem, entertain, educate, improve another thing or make some process easier or simpler, help save money or time, or anything else.
If the product is unable pass this test, it probably should not exist.
The product has to accomplish what it is meant to do with a sufficient degree of quality that is necessitated by the market place in which the company is to compete; the higher the quality of the product, the better it will fare in the marketplace and the more you can charge for it. Charging and being able to get someone to pay you for your product or service is very important because that gives you a revenue model and a business model.
The reason this item is optional is that in the beginning, few companies make a sufficient amount of money to sustain themselves and make a profit. Additionally, there are many schools of thought about whether revenue in the early stages of the company is important or not. For many companies, early revenue is a distraction and founders prefer to focus on making the product to be of as high quality and usefulness as possible. Eventually though, nearly every company needs to make money so do have in mind some ways the product or service can bring in revenue.
When you are thinking and planning your company, consider how necessary this product is to your potential consumers. You must be able to explain why your product or service should exist in the world and how much value it really provides to your target users. Not having a good answer to this question is a sign that the product or service may not have much demand.
If you do have an answer to this question, it must include why, how and how much it is helpful to your target users.
Understanding who your target customers are, and their behavior patterns is a must. If you do not understand your target market, it makes it much harder to build a great product for that market. This will also cause you difficulties when you will be trying to advertise to your target users because they will be difficult to target with your advertising. If you do not know exactly who your best converting target customers are, all your actions and initiatives will be less precise and targeted than they potentially could be.
Article by Alex Genadinik