Product launch: 10 steps to launch your new product

Published Tuesday 4 November 2025

Table of contents

• What is a product launch?
• Why your small business might launch a new product
• Where to begin with a product launch
• 10 steps for launching a new product
• Lessons from your launch
• Make your product launch a success with Xero
• FAQs on product launches

Key takeaways

• Conduct thorough market research and create detailed customer profiles before launching to ensure your product addresses real customer pain points and targets the right audience effectively.

• Develop a comprehensive go-to-market strategy that covers pre-launch preparation, launch execution, and post-launch evaluation with clear timelines and assigned responsibilities for each phase.

• Establish a detailed budget that includes production costs, marketing expenses, distribution fees, and a 10-20% contingency fund to manage unexpected costs during your launch.

• Set measurable goals and key performance indicators (KPIs) before launching, then analyse sales metrics, marketing performance, and customer feedback for 2-3 months post-launch to guide future improvements.

What is a product launch?

A product launch is how you introduce a new product to your customers. It shows them how your product helps and encourages them to buy.

Why your small business might launch a new product

Product launches help small businesses grow revenue and reach new markets. When done well, they deliver measurable benefits:

• New customer acquisition: Attract buyers who haven't discovered your business yet
• Brand awareness: Generate buzz and improve market visibility
• Revenue diversification: Reduce dependence on existing products
• Competitive advantage:Stay ahead of competitors with fresh offerings that align with key market drivers, noting that sustainable finance is one of ASIC’s four external strategic priorities for 2023–2027.

Careful planning helps you make the most of your product launch and protect your reputation.

Where to begin with a product launch

A go-to-market strategy is your roadmap for bringing a new product to customers. It outlines every step from initial planning to post-launch evaluation.

Your strategy should cover three key phases:

• Pre-launch: Market research, product development, and marketing preparation
• Launch: Promotional activities, sales execution, and customer outreach
• Post-launch: Performance monitoring, customer feedback, and strategy adjustments

Whether you choose a soft launch or a full-scale launch, this framework helps you cover every step.

10 steps for launching a new product

Follow these 10 steps to launch your product.

Step 1: Figure out how your product fits the market

A value proposition is a clear statement of how your product solves your customers’ problems better than other options. It is the foundation of a successful product launch.

Two essential research activities:

Market research: Understand your customers and competitors

• Conduct customer surveys to identify pain points
• Run focus groups to test product concepts
• Analyse competitors to find market gaps
• Study buying behaviours and decision factors

Customer identification: Define your ideal buyers

Create detailed customer profiles including demographics, needs, and shopping preferences. This helps you target the right people with the right message.

Here's more on defining buyer personas from the Digital Marketing Institute.

Use a SWOT analysis to quantify your risks

SWOT analysis is a strategic planning tool that evaluates four key factors affecting your product launch success.

The four SWOT components:

Strengths: Your competitive advantages

• Unique product features that differentiate you
• Available resources (budget, team, expertise)
• Existing customer relationships or brand recognition

Weaknesses: Internal limitations to address

• Resource gaps (funding, skills, technology)
• Team experience limitations
• Production or operational constraints

Opportunities: External factors that help you succeed

• Underserved customer segments
• Market trends supporting your product, such as the government-backed push to underpin a nature positive economy by mobilizing public and private capital.
• Partnership or distribution possibilities

Threats: External risks to prepare for

• Direct and indirect competitors
• Market downturns or regulatory changes, such as new climate-related reporting requirements will commence for large companies from 1 January 2025, which can influence broader market expectations.
• Supply chain or technology disruptions

Set out your risks in a risk register to highlight and organise them, and plan how to manage each risk. Learn more about risk registers from Asana.

Step 3: Develop and test your product

Is your product market-ready? Find out by scrutinising its design through four product development stages.

Set a budget

How much time and money will it take to develop your product? How many employees will be involved? List any costs and factor them into your business plan.

Nail your product design

At the prototyping stage, apply your market and competitor research to your new product. Your prototype could be a drawing, model, or minimum viable product (MVP) – a basic version of your product.

Test your product

Test your product with people outside your business to get honest feedback before you launch.

Also, test the other things needed to create and launch your new product, such as machines, materials, and packaging.

Refine your product

Use this stage to make final changes and test again if needed.

Step 4: Craft your product launch strategy

You need to know when and how you're promoting your new product – and how you'll judge your launch's success.

Set a launch date and lead-up timings

Think about the best time of year to launch – is your product a seasonal one? When are your customers most likely to be interested?

Make sure you allow enough time before launch to promote your product and reach your customers.

Decide on a soft launch vs hard launch

The right type of launch depends on your budget, business goals, market conditions, and how ready your product is.

• A soft product launch lets you test the market. It's a limited release so you can gather feedback and adjust your product before trying again.
• A hard product launch is a full release and promotion to all your audience at once. A hard launch carries more risk, but it can also bring greater rewards.

Step 5: Set up your budget and your finances

Once your budget's in place, you're less likely to overspend and more able to manage unexpected launch costs.

Create your budget

Essential budget categories for product launches:

Production costs: Manufacturing, materials, or service delivery expenses

Marketing and advertising: Promotional campaigns, content creation, and media spend

Sales and distribution: Payment processing fees, retail partnerships, and shipping costs

Research and development: Ongoing product improvements and market testing

Contingency fund: 10–20% buffer for unexpected costs like price increases or additional inventory

Set sales goals and KPIs

How will you know if your launch is a success? Set clear goals and measures to track your product's performance, like KPIs. Check out our business KPI examples.

Set your pricing strategy

Set a price that covers your costs and leaves room for profit. Unexpected costs can affect your profit margin, so review your pricing regularly.

Pricing is always a delicate balance between profit and customer loyalty. Here are some well-known pricing approaches to go with at launch:

• Penetration pricing – setting prices low for launch then raising later
• Price skimming – setting prices high for launch then dropping later
• Sweetener deals – introductory specials

Check out our pricing strategies guide for more advice.

Calculate your BEP and ROI

Two critical financial calculations:

Break-even point (BEP): When total revenue equals total costs

• This shows how many units you need to sell to recover your investment
• Reaching BEP means your launch has paid for itself
• Calculate by dividing fixed costs by profit per unit

Return on investment (ROI): Measures launch profitability

• Shows how much profit you generate per dollar invested
• Calculate by dividing net profit by total launch costs, then multiply by 100
• Higher ROI indicates more efficient use of resources

Here's more on BEPs and here's more on ROI.

Step 6: Plan your marketing strategy

Your marketing campaign should create and share consistent, compelling messages across different media and platforms – all created with your customers in mind.

Your value proposition is your foundation

Your product's value proposition forms the cornerstone of your marketing campaigns. It consists of an impactful headline and a brief statement (2–3 sentences) of your product's benefits for the customer.

Your marketing channels are powerful tools

Your website and email lists are key tools for promoting your new product. Create a new product page or use promotional features on your existing site to improve visibility. Use your email lists for campaigns, giveaways, exclusives, or member deals.

Use social media to encourage sharing:

• Engage influencers for reviews, and pitch to publications
• Use social media ads at the right time and target your ideal customers. Offer incentives such as introductory discounts, free delivery, or sign-up rewards.

Consider traditional marketing methods

In addition to digital marketing campaigns, you can also use traditional marketing strategies, like print ads or direct mail, depending on your budget and if you're aiming to reach a broader audience.

Plan your launch content and schedule in advance to stay organised.

Lay out the content you're publishing – emails, articles, social media messages, and so on – and when. Don't forget your launch announcement: the moment you tell the world about your exciting new product.

Step 7: Choose the right distribution channels

How will your customers find and buy your product?

Choose the best way to get your product to your customers.

Here are some ways to sell your product:

• eCommerce: on your own website, or others like Amazon and Facebook Marketplace
• Traditional retail: in physical shops and on market stalls
• Wholesale: in large quantities at low prices
• Direct sales: straight to the customer – such as door-to-door
• Subscription services: selling a product or service on a recurring basis

The right distribution channels depend on your product type and the market. Direct sales work well for luxury goods, as customers can see and touch them. Wholesale selling suits products like cleaning supplies.

Step 8: Prepare your team and partners

Train your team and hold a pre-launch meeting to clarify roles and responsibilities.

• Your production and distribution team needs to know timeframes and resourcing.
• Your marketing team needs to understand the key promotional activities and when to publish content.
• Your sales team needs to know all about the product's features and your pricing strategy.
• Your customer service teams need to know the product's specifications, and other things people might not understand, so they can answer customer questions.

Step 9: Prepare to launch

Final pre-launch preparations:

Documentation and communication:

• Finalise your launch plan and share with all team members
• Create a detailed launch day checklist with assigned responsibilities
• Ensure all stakeholders understand their roles and timelines

Tracking and measurement setup:

• Install analytics on your website to monitor traffic and conversions
• Set up email tracking to measure campaign performance
• Prepare customer feedback collection systems (surveys, review platforms)

These preparations ensure you can measure success and respond quickly to any issues.

Step 10: Execute and evaluate your launch

Post-launch evaluation process:

Step 1: Analyse key performance indicators

• Sales metrics: Revenue, units sold, conversion rates
• Marketing performance: Website traffic, email open rates, social media engagement
• Customer feedback: Reviews, support tickets, satisfaction scores

Step 2: Make data-driven improvements

It can take two to three months for your product to gain traction. Use data to guide your strategy adjustments.

Step 3: Document lessons learned

Record what worked, what didn't, and why. These insights improve your next product launch and overall business strategy.

Protect your intellectual property

Consider protecting your product or idea with intellectual property or trademarks.

Lessons from your launch

Every product launch teaches you about your product and your market. Use these lessons to improve your next launch and your business strategy.

Here's more from IP Australia about protecting your IP

Make your product launch a success with Xero

Xero accounting software helps you manage your product launch by keeping all your numbers in one place. You can check your stock levels, manage cash flow, and view reports from anywhere.

Try Xero for free.

FAQs on product launches

Launching a new product can raise many questions. Here are answers to some of the most common ones.

What are the 4 P's of product launch?

The four Ps are a marketing framework to guide your strategy. They stand for:

• Product: What you're selling and why it's valuable to customers.
• Price: How much it costs, and how that price reflects its value.
• Place: Where customers will find and buy your product.
• Promotion: How you'll tell your target audience about the product.

How long does a typical product launch take?

There is no single answer, as it depends on your product and industry. A launch is not just one day. It includes planning, launch day, and post-launch evaluation and marketing. The process can take several months.

What's the difference between a soft launch and hard launch?

A soft launch is a limited release to a small audience. It's a great way to test your product and marketing with lower risk. A hard launch is a full-scale release to your entire market at once, often with a large marketing campaign to support it.

How much should I budget for a product launch?

Your budget will depend on many factors, including production costs, marketing channels, and team size. The key is to create a detailed budget that covers all expected expenses, from development to promotion, and includes a buffer for unexpected costs.

What are the most common product launch mistakes?

You can improve your chances of success by doing market research, creating a clear marketing plan, listening to early customer feedback, and choosing the right timing.