8 Steps to Launch Your Startup’s First Product, Fast
You have a great idea for a new product. You believe it could serve as the foundation for a successful, profitable business. You’re eager to make it work.
There’s just one problem. You’re not sure where to start, and the mere thought of giving it your all is enough to send shivers up your spine.
You’re not alone. Millions of budding entrepreneurs are standing in your shoes (or sitting in your seat) at this very moment, waiting for a sign to proceed. For various reasons, many won’t ever make the leap.
However, many others will. In fact, many others already have. And serial entrepreneurs like EarthLink founder Sky Dayton, who later went on to launch several other successful tech companies, are living proof that good things can happen when you try.
It won’t be easy, of course. Here’s what experienced founders like Dayton tell people like you to do if they’re really, truly committed to the life of an entrepreneur.
1. Detail Your Idea on Paper
Are you a “list person”? If so, this step will be nothing out of the ordinary. And if you’re not, don’t worry. The thought of fleshing out your product idea on paper (or a digital document) should bring you joy. In fact, if it doesn’t, perhaps it’s not too late to rethink the whole “starting a business” thing.
2. Validate and Stress-Test It With People You Trust
Once you have a detailed idea — “detailed” meaning dozens of pages, with diagrams and source code and whatever else you need to demonstrate a fully formed concept — then it’s time to share it with a select group of people you trust.
You have two goals with this step. First, to validate your product, making sure its design passes the sniff test and doesn’t have any glaring gaps that need to be addressed before you can proceed, and that there is a real market for it. Second, to stress-test it in theoretical scenarios that you might not have considered yet, generating results that can help you iterate and improve the concept before going any further.
3. Write Up a Detailed Business Plan
A successful product needs a well-run business behind it. To that end, your next step is to write up a detailed business plan.
Like your plan for the product itself, your business plan should leave little to chance. It should clearly spell out the potential risks to its success. Share your business plan with the same trusted group of people (or others, if they’re better qualified) to make sure it doesn’t miss anything important.
4. Begin Fundraising
Before long, you’ll need real money to begin turning your product idea into reality. If you’re developing a piece of hardware, or something that fits into a more complicated physical system, you’ll most likely need more money — and sooner.
Many entrepreneurs and early-stage investors advise founders to “bootstrap” using their own money until they’re fully tapped out. This has some advantages, like not giving away equity in your growing company and not being obligated to a lender. However, if you’re not in a position to self-fund for very long, you’ll have to consider other options.
5. Develop a Demonstration Product
You might call this a “demo” or a “mockup.” Whatever your preference, and whether you’re developing a software solution or piece of hardware, the aim is to create a reasonable approximation of your product as it will look (and function) in the real world.
6. Get More Feedback and Iterate
You know the drill by now. With your demonstration product live, it’s time to turn to people you trust for feedback and criticism.
The people best placed to provide feedback on your demo product might not be those best placed to evaluate your business plan. Real-world experience with the type of solution you’re developing is important at this stage because every minute detail matters. You don’t want any problem, no matter how small, to escape notice.
7. Start Hiring (Or Contracting) For Subject Matter Expertise
At this point, it’s possible you’ve already made your first hire. Or maybe several early hires, each focused on a different part of your growing operation.
If not, now is the time. You’ll need all the help you can get as your business grows, and not just on matters directly related to your first product. You’ll also need marketing and business development support, accounting expertise, and eventually professional human resources help as well.
8. Launch Your Waitlist, Then Your Minimum Viable Product
You’re finally ready to reveal your existence to the world. Many nascent businesses do this by launching a website and social media profiles and using them to promote a waitlist for interested parties to join.
You can really drive declarations of interest by making your waitlist free to join and totally open to the public, but you’ll enjoy a higher conversion rate if you ask for a small deposit as a condition of joining, if you open the waitlist only to people who meet certain criteria (such as micro-influencers willing to promote your product), or both.
In either case, keep developing the first “wide release” version of your product as your waitlist grows. This will result in a minimum viable product that’s good enough to charge money for.
Once your MVP is out, it’s time to hit the ground running.
One Step at a Time
If you’re seriously thinking about starting your own company, you already know that it’s a risky bet. You’ve seen the stats about how many startups fail during the pre-revenue phase, and how many more never reach profitability.
You’re willing to take those odds. Now, the question becomes, how do you skew those odds in your favor? How do you increase your startup’s chances of not only surviving until it’s profitable, but transforming into a thriving company that creates products you and your team can be proud of?
These eight steps began to answer those questions. However, there’s much more to learn about entrepreneurship. Even seasoned founders and investors, like Sky Dayton, learn new things every day. That’s what separates the merely good from the truly great.
