The elements
Identify underserved customer needs
Determine target customers
Value proposition - statement describing what product does and how it is different than competition
Product-Market Fit Resources
Establishing clear standards and benchmarks for evaluating the performance and quality of a product or service.
1. Performance Criteria:
Functionality: This refers to how well the product or service performs its intended function. For example, a software application should be user-friendly, responsive, and free of bugs.
Reliability: Customers expect products or services to work consistently and reliably over time. Entrepreneurs need to define criteria for reliability, such as mean time between failures (MTBF) or warranty terms.
Efficiency: Entrepreneurs should consider the efficiency of their product or service in terms of resource utilization, time savings, or cost-effectiveness. This could involve criteria such as speed, energy efficiency, or cost per unit produced.
Scalability: As the business grows, the product or service should be able to scale to accommodate increasing demand without sacrificing performance. Entrepreneurs may define criteria for scalability, such as maximum capacity or response time under load.
2. Quality Criteria:
Durability: Quality products should be built to last and withstand normal wear and tear. Entrepreneurs need to define criteria for durability, such as expected lifespan, materials used, or resistance to environmental factors.
Accuracy: For products or services that involve measurements or calculations, accuracy is crucial. Entrepreneurs may define criteria for accuracy, such as margin of error or precision.
Conformance to Standards: Entrepreneurs should ensure that their product or service meets relevant industry standards, regulations, or certifications. Quality criteria may include compliance with standards such as ISO, safety regulations, or industry specific guidelines.
Customer Satisfaction: Ultimately, quality is determined by customer satisfaction. Entrepreneurs should gather feedback from customers to define quality criteria based on their expectations, preferences, and experiences.
3. Measurement and Evaluation:
Key Performance Indicators (KPIs): Entrepreneurs need to establish KPIs to measure the performance and quality of their product or service objectively. This could include metrics such as defect rate, customer satisfaction score, or uptime.
Testing and Validation: Entrepreneurs should conduct thorough testing and validation to ensure that their product or service meets the defined performance and quality criteria. This could involve prototype testing, user feedback sessions, or third-party certification.
4. Continuous Improvement:
Feedback Loop: Entrepreneurs should use feedback from customers, stakeholders, and internal teams to continuously improve their product or service. This involves revisiting and refining performance/quality criteria based on new insights or changing market conditions.
Iterative Development: Entrepreneurship is an iterative process, and entrepreneurs should be willing to iterate on their product or service based on feedback and performance data. This could involve incremental improvements, feature updates, or pivots in response to market feedback.
By defining clear performance and quality criteria and continuously monitoring and improving against these standards, entrepreneurs can enhance the competitiveness and sustainability of their business in the market.
1. Market Research
Purpose: Understand customer needs, preferences, and market trends.
Methods: Surveys, focus groups, competitive analysis, and SWOT analysis.
Outcome: Identify opportunities and validate product concepts.
2. Product Design and Development
Prototyping: Create and test prototypes to refine design and functionality.
Design Thinking: Empathize with users, define problems, ideate solutions, prototype, and test.
User Experience (UX): Focus on usability, accessibility, and overall user satisfaction.
3. Material Sourcing and Supply Chain Management
Quality Sourcing: Select high-quality materials that meet product standards.
Supplier Relationships: Establish reliable partnerships with suppliers.
Cost Management: Balance cost and quality to maintain profitability.
4. Financial Resources
Funding Options: Understand various funding sources such as personal savings, loans, investors, and crowdfunding.
Budgeting: Develop a budget for product development, including R&D, production, and marketing costs.
Cost Control: Implement cost-saving measures without compromising quality.
5. Operations and Production
Manufacturing Processes: Choose the right production methods (e.g., in-house, outsourcing).
Scalability: Plan for scalable production to meet growing demand.
Quality Control: Implement quality assurance processes to ensure product consistency.
6. Legal and Regulatory Compliance
Intellectual Property (IP): Protect innovations through patents, trademarks, and copyrights.
Regulatory Requirements: Ensure compliance with industry standards and regulations.
Contracts and Agreements: Draft and review contracts with suppliers, partners, and customers.
7. Marketing and Launch Strategy
Value Proposition: Clearly define the product’s unique value and benefits.
Go-to-Market Strategy: Plan the product launch, including pricing, distribution, and promotion.
Customer Feedback: Gather and analyze feedback post-launch to make improvements.
8. Continuous Improvement
Feedback Loop: Use customer, stakeholder, and internal team feedback to refine the product.
Iterative Development: Continuously update and improve the product based on performance data and market feedback.
Innovation: Stay abreast of market changes and new technologies to keep the product competitive.
One of the first steps to creating a new product is to identify materials and build a prototype.
Tooling, also known as machine tooling, is the process of acquiring the manufacturing components and machines needed for production.
Creating product specifications and design requirements
Design to be inexpensive to manufacture but don't compromise on quality
Sourcing parts and materials
Material Properties (6:51)
3D Printing Sustainability (4:51)
A sell sheet is a physical version of an elevator pitch. Sometimes referred to as a “one page,” a sell sheet concisely explains your product or service and how it solves a problem. A strong sell sheet will be visually enticing, be easy to read, be to the point, and contain a direct call to action.
Value Engineering is the act of finding value-added solutions to reduce costs while increasing functionality.
1. Production Options for Digital Products and Services
A. Software Development
In-House Development: Building software using internal resources and staff.
Pros: Full control over the development process, easier to align with company goals.
Cons: High cost, requires skilled staff.
Outsourcing: Hiring external developers or development firms.
Pros: Cost-effective, access to specialized skills.
Cons: Less control, potential communication issues.
SaaS (Software as a Service): Providing software through a subscription model.
Pros: Recurring revenue, easier updates and maintenance.
Cons: Requires robust infrastructure, ongoing maintenance.
B. Content Creation
In-House Content Creation: Creating digital content (e.g., videos, articles) using internal teams.
Pros: Full control over content, consistent quality.
Cons: Time-consuming, requires creative talent.
Freelancers/Contractors: Hiring freelancers to create content.
Pros: Flexibility, access to diverse talent.
Cons: Variable quality, less control.
User-Generated Content: Encouraging users to create and share content.
Pros: Cost-effective, enhances community engagement.
Cons: Quality control, requires moderation.
C. Online Platforms
Website Development: Creating a website to deliver digital products/services.
Pros: Wide reach, control over user experience.
Cons: Requires technical skills, ongoing maintenance.
Mobile Apps: Developing mobile applications for product/service delivery.
Pros: Accessibility, convenience for users.
Cons: Development cost, platform-specific requirements.
2. Production Options for Physical Products
A. Manufacturing
In-House Manufacturing: Producing products within the company’s facilities.
Pros: Full control over production, customizable processes.
Cons: High capital investment, operational complexity.
Contract Manufacturing: Outsourcing production to third-party manufacturers.
Pros: Lower capital investment, access to expertise.
Cons: Less control over quality and timelines.
Dropshipping: Partnering with suppliers to ship products directly to customers.
Pros: Low upfront cost, no inventory management.
Cons: Lower profit margins, dependency on suppliers.
B. 3D Printing
Prototyping: Using 3D printing to create prototypes for testing and development.
Pros: Rapid iteration, cost-effective for small runs.
Cons: Limited materials, slower for large-scale production.
Custom Products: Producing custom or limited-edition items.
Pros: Personalization, reduced waste.
Cons: Higher cost per unit, limited scalability.
3. Production Options for Services
A. In-Person Services
Brick-and-Mortar Locations: Offering services from physical locations.
Pros: Personal interaction, immediate service delivery.
Cons: High overhead costs, limited to local market.
On-Site Services: Providing services at the client’s location.
Pros: Convenience for clients, personalized service.
Cons: Travel costs, time management.
B. Online Services
Virtual Consultations: Offering consultations via video conferencing tools.
Pros: Wide reach, flexible scheduling.
Cons: Requires internet access, less personal interaction.
Digital Platforms: Providing services through specialized online platforms (e.g., e-learning, telehealth).
Pros: Scalability, recurring revenue.
Cons: Platform dependency, technology requirements.
4. Hybrid Production Models
Click-and-Mortar: Combining online and physical presence (e.g., order online, pick up in-store).
Pros: Flexibility for customers, increased sales channels.
Cons: Requires integration of online and offline operations.
Subscription Boxes: Offering curated products or services on a subscription basis.
Pros: Recurring revenue, customer retention.
Cons: Logistics complexity, inventory management.
Digital production and software development
The design thinking process is very similar to the software development lifecycle (SDLC) and its stages (planning, requirement analysis, designing, building, and testing) More info
Similar to POV problem statements, engineers collect and formulate user stories. A typical user story has the form: “As a <role>, I want <goal/desire> so that <benefit>.”
Engineers call their idea for a solution a "preliminary operational concept (OpsCon)".
Engineers are familiar with and also create storyboards.
Prototype evolution for a website or app
A wireframe (or sketch, or paper prototype) is a rough sketch about how a website/app will look like. It is usually presented with gray lines, boxes, colors and placeholders. It is similar to the blueprint of a building.
A mockup is a static wireframe with much more UI and visual details. A mockup is similar to a real-life building model.
A prototype is a dynamic (clickable) mockup.
Example app prototype made in Figma - Marvel App
To engineers, validation is ensuring that one is working the right problem, and verification is ensuring that one has solved the problem right.
Agile is a project management and software development philosophy that is very similar to Lean.
Scrum is a specific Agile methodology (a way to implement the philosophy).
In Scrum, a MVP is known as a "potentially shippable product increment (PSI)". More info
Creating software specifications and design requirements
Manufacturing
Working with manufacturing firms
Build a relationship
i.materialise online 3D printing service. Upload your 3D model, choose from 100+ different finishes and materials, select the size of your print, receive a price quote instantly and let us take care of printing and shipping your products.
Protolabs Rapid Prototyping & On-demand Production Services
Send a .stl file (or SolidWorks (.sldprt), ProE (.prt), IGES (.igs), STEP (.stp), ACIS (.sat), Parasolid (.x_t or .x_b)) and get a design for manufacturability (DFM) analysis and real-time pricing,
More than just 3D printing, injection molding, CNC machining, and sheet metal fabrication.
More printing materials than available in the makerspace, smaller batches than a local contract manufacturer
1. Quality Control Testing Processes
A. Digital Products and Services
Functionality Testing: Ensure software and digital services perform as intended under various conditions.
Usability Testing: Evaluate user experience to ensure intuitive navigation and functionality.
Compatibility Testing: Verify compatibility with different devices, operating systems, and software versions.
Security Testing: Assess vulnerabilities and ensure data protection measures (e.g., encryption, secure authentication).
B. Physical Products
Materials Testing: Validate the quality and durability of materials used in manufacturing.
Dimensional and Fit Testing: Ensure products meet design specifications and fit together correctly.
Performance Testing: Test performance metrics such as speed, efficiency, and reliability.
Durability Testing: Evaluate product lifespan and resistance to wear and tear.
2. Adherence to Government Regulatory Requirements
A. Digital Products and Services
Data Privacy Regulations: Compliance with laws like GDPR (General Data Protection Regulation) for handling personal data.
Accessibility Standards: Ensure digital products are accessible to users with disabilities (e.g., ADA compliance).
Software Licensing: Adherence to licensing agreements and intellectual property laws.
B. Physical Products
Safety Standards: Compliance with safety regulations such as ASTM (American Society for Testing and Materials) for product safety.
Environmental Regulations: Adherence to regulations on materials and disposal (e.g., RoHS directive).
Labeling and Packaging: Compliance with labeling requirements (e.g., FDA regulations for food products).
3. Testing Methodologies and Tools
Statistical Quality Control: Use statistical methods to monitor and control product quality during manufacturing processes.
Non-Destructive Testing: Techniques like X-ray inspection or ultrasonic testing to evaluate product integrity without damaging the item.
Certification Processes: Obtaining certifications (e.g., ISO standards) to demonstrate compliance with international quality and safety standards.
Documentation and Record-Keeping: Maintain comprehensive records of testing processes, results, and compliance documents.
4. Continuous Improvement and Feedback
Feedback Loops: Gather customer feedback and performance data to identify areas for improvement.
Iterative Testing: Continuously test and refine products throughout their lifecycle based on feedback and market demands.
Risk Management: Assess and mitigate risks associated with quality control failures or regulatory non-compliance.
5. Ethical Considerations
Consumer Trust: Build and maintain consumer trust through transparent quality control practices.
Corporate Social Responsibility (CSR): Consider ethical implications of product development and testing processes.
Should be established before sales to customers begin and ongoing after.
Review the results of internal quality assurance testing.
Refine quality measures as needed to increase the level of satisfaction with your product.
Establish the method to use for testing product quality.
Determine what standards have to be met based on the product and industry.
Buy or Build Analysis - a framework that businesses use to compare the costs and benefits of developing a new technology internally versus purchasing an existing technology from an external supplier.
The Occupational Safety and Health Administration (OSHA) is a government entity that sets regulations for safety and health in the workplace.
Types of distribution channels
Direct Distribution - a direct sale between the manufacturer and the consumer.
The manufacturer controls all aspects of distribution.
A direct distribution channel is also known as a zero level channel.
Example: customers buy directly from manufacture's warehouse
Indirect
Wholesalers and retailers sell a manufacturer's product, which helps a company reach more customers.
Hybrid
Aspects of both direct and indirect.
Example: a company can sell products from their website, but use a different company to deliver the product to the customer.
Factors in the selection of distribution channels
Product price affects the length of the distribution channel. If selling price per unit is low and consumption is high, flow through the channel is more direct as in the case of televisions, washing machines, laptops. etc.
Perishable products require more direct distribution due to the dangers associated with repeated handling and delays. Perishable products such as dairy, bakery products, fruits and vegetables or sea foods must be placed in the hands of the final users soon after their production.
Products that are bulky, large in size, and technically complicated are usually sold directly by the company to their consumers because of the difficulty of finding middlemen for these lines.
Fulfillment Centers - outsourced warehousing and shipping for a manufacturer.
Warehousing is a primary role.
Fulfillment centers pack and ship for a manufacturer.