Is Your Product Idea Even Worth It? How to Know Before You Waste Time and Money
Before you sink your savings into a product, here’s how to figure out if it has any chance of success.
Coming up with an exciting product idea feels like a breakthrough moment.
But let’s be honest:
An idea isn’t a business.
Before you invest your money—or someone else’s—you need to ask one crucial question:
👉 Is this product idea actually viable?
The First (and Most Overlooked) Step: Research
You’d be shocked how many founders skip this.
You have to do the research.
✅ Search marketplaces like Amazon to see what’s out there.
✅ Read reviews—what do customers love and hate?
✅ Check sales volumes to gauge demand.
✅ Look at competitors—can you be meaningfully different?
If you don’t see a clear path to stand out, you’re probably entering a crowded race you can’t win.
Manufacturing vs. Licensing: A Critical Decision
If you decide to make the product yourself, understand this:
Manufacturing is likely the most capital-intensive business path.
Why?
You may have to design custom machinery or processes.
You’ll need a facility, tooling, inventory systems, and skilled labor.
Even simple products (like apparel) have costs you can’t ignore.
The upside? Control over quality and production.
The downside? Tremendous upfront investment.
Licensing, on the other hand, means you develop the idea and let an established company produce and distribute it—often in exchange for royalties.
How to Evaluate Manufacturing Readiness
If you plan to build it yourself, ask:
Do you have clear CAD files or detailed specifications?
Can you prototype and test for tension, durability, and safety?
Do you know your exact cost per unit—materials, labor, overhead?
After all expenses, can you price it with at least 3x–5x margin?
Example:
If it costs you $2 to make, don’t plan to sell it for $3.
You need enough markup to cover:
✅ Operational expenses
✅ Commissions and distribution costs
✅ Your own pay and profit
The Bottom Line
Your passion for the product is essential—but it isn’t enough.
You need:
✅ Rigorous research
✅ A clear plan to differentiate
✅ Realistic cost and margin expectations
✅ A smart decision about manufacturing vs. licensing
Before you launch, validate.
Before you spend, plan.
Before you build, ask:
Is this product really worth it?
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