Out of the Gate Product Development

Once you have an idea for your company, there are two ways to get your product out to the market- a traditional way, and a more radical approach. Which approach you take depends on your own appetite for challenge and risk, and the make up of your initiation team.

Traditional Approach

The traditional approach for turning ideas into a thriving company basically involves an extended investment of upfront time and planning. The product is defined on paper, refined into specifications, built by the developers or designers, and then selling begins, one customer at a time, until a momentum is established. The product is usually built to minimum specifications, but it is generally not sold until at least a hands-on prototype is available to show prospective customers. This process holds true whether your product is a software/internet product, or a tangible material product.

The time from innovation to first customer can be as long as 3 years, and as short at 9 months. In this time, obviously, there is no cash coming in, and raising capital to continue development takes up a good deal of your time. Many companies do follow this method, and succeed, so we are not making it wrong.

Out of the Gate Approach

Another approach, championed by one of the product consulting companies, SyncDev promotes a radical change: Sell, Design and Build. For several years, Spartina has consulted with and supported start-up companies following this model.

In this model, you begin to sell your customers on your idea, not on your finished product. Using similar approaches that you might take for raising capital, you create presentations that clearly state what the product will be. However, as you make your presentations to possible customers, you are also taking their feedback and refining the product to meet their real needs, rather than your imagined needs.

The benefits of this approach are that you have customers lined up and cash available to run your business. In some ways, you can say that you are starting out already successful, where success is measured by people wanting your product.

The caveat in this approach is to be sure that as you tailor your idea to match your customer, you don’t create a limited, turn-key product which suits only one customer and not your whole market. There needs to be a constant assessment of features, to insure that they are universally useful.

Which approach is right?

Nothing is black and white, and either product development approach can work. If you have the funds to sit back and design first, before lining up customers, and you have done your homework in terms of market research, then the traditional method can work for you. If you are eager to be in business right away, then you might consider jumping out of the gate with an already sold product. In that case, you may be well on your way to a fast track for success.