New Products

An existing business serving an existing market can expand through the development of new products or services. For example, some payroll service companies are now actively marketing retirement plans to their customers. Launching a new product is definitely a time when you'll want to create a business plan. The scope of the plan may be limited to just the new product, provided that you've already planned for the time and resources that the project will require. If not, you'll have to revisit your existing business plan and integrate the new product project into the overall plan.

In general, a new product introduction will have a substantial effect on your business. Consequently, any of the following events would justify creating or amending your business plan:

• providing a wholly new product or service that differs from anything that was available at the time of its introduction (consider the first pocket calculator and fast oil change services)
• enhancing or modifying an existing product or service
• repackaging of existing products