Product Development: Who Pays?

Funding

When you’re a startup and want to expand, it can be a daunting task to figure out which products to develop. Before you dive in and spend, it’s a good idea to ask yourself “who will pay for this?” It’s important to ask yourself these questions to make sure that your overall cost also matches your sources. If you are working with an existing product that needs an upgrade, your current customers are a great source of payment.

It’s important to ask yourself these questions to make sure that your overall cost also matches your sources. If you are working with an existing product that needs an upgrade your current customers are a great source of payment. You can even survey your customers about what their needs are.

If you decide you’d like to develop a new product, it’s a good idea to find customers who are willing to prepay. If you can’t find those customers you should reconsider.

A lot of startups think that pre-selling a product is difficult to do. In reality, it’s about the same amount of work.

You can get a lot of benefits when working with your customers in the product development phase. You get a clear idea of problems that need to be solved and what customers are willing to pay for.

It can also give you a slight competitive advantage. Matching product development with customer payments keeps you aligned with the market.

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