I am always a bit confused when getting a "new product launch" case. More specifically, the following times: "A good friend of yours wants to start a new business and asks for your advice whether he should continue with it or not. It is a XXX-type of business".
I am often confused about the type of clarifying questions are key to ask, most of the time I start with these:
- Which criteria should we consider to assess whether to continue or not?
- When does he want to break even?
- What is the value proposition of the product/service?
- What regions would he be active?
Key buckets to consider:
- Business model profitability (costs, prices, customer acquisition cost)
- Competitive landscape: Competitors, size and growth of competitors, barriers to entry, customer segments of competitors?
- Market sizing: What is the market potential (estimate total revenue generated by servicable customers)
- Needed investments / in-house capabilities: What capabilities and expertise are needed? What are the initial investments? How will this be financed?
Anyone an idea if this is a good "framework" to use when dealing with this kind of cases?