Page 88 - MICROHUB Handbook - ENGLISH

HOW TO BUDGET YOUR

PRODUCT

You need funds to develop a new product or service since your efforts

are not free. If you have a strategy, you'll have the money you require.

Examine the launch phases and estimate the expenditures for each

phase so you can fund your efforts until the product or service

generates a profit. There are four phases you need to analyse in order

to define the final budget for your product: development, production,
promotion, and contingency budget.

The price of creating your new product or service must be estimated.
Determine the new payroll costs for the workers who will design or

produce the product. As an illustration, if you are making a new product,

you will want more production personnel as well as supervisors to set

up quality control standards and protocols. You must determine the

actual cost before buying an existing product to resell, as well as if you

need to educate salespeople to sell it. You will need more people to

deliver a new service, and you will spend money training your sales

team to promote the new service. All the preparations required before

you actually launch the new product or service onto the market are
included in your cost considerations for the development stage.

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