Picture this: you’re a startup entrepreneur with a great idea for a product. You’ve put in the time and effort to design and build it, but you don’t have a finished product yet.
Do you sell it to clients anyway? Contrary to popular belief, the answer is yes! In fact, selling your product before it’s finished can actually help you develop it further and make more money
Here are four reasons why selling first rather than building first is more beneficial for entrepreneurs.
By selling your product before it’s finished you will receive feedback from clients that you can use to develop the product further. It’s important to get feedback early and often when you’re developing a new product so that you can make changes and improvements based on what users want and need.
If you were to sell after finishing the development of your product, there is a chance that you might have built something that your target audience does not really need or something that they already have.
Another reason why you should sell your product before it’s finished is that it is a great way to earn funds to support the further development of your product. When you sell a product before it’s done, you’re obviously not going to be able to charge as much for it as you would if it was finished.
However, the money you do make can help fund important aspects of your business like marketing, research, and development, or hiring staff. Further, with initial sales out of the way, you can now focus on developing the product, instead of worrying whether anyone would buy your product or not.
If you were to build before you sell, you are spending money that you may or may not get back depending on the success of the product, making it all the more risky.
Selling before building can also show potential investors that you are a serious business with a viable product. If you can sell your product before it’s even done, it is proof that there’s a demand and people are willing to pay for it. This is a great way to attract potential investors who can help you take your business to the next level.
If you sell your product and people are actually willing to pay for it, that’s a good sign that you’re onto something and that your product is worth finishing. You are solving an existent problem faced by your target market with your product. On the other hand, if you sell your product and no one buys it, that could be a sign that you need to rethink your idea.
So there you have it, four reasons why selling your product before it’s finished can actually be advantageous. If you’re thinking about starting a business, don’t wait until your product is perfect before selling it – get started today! Who knows, it might take off in a way you never even imagined.
Find out how to improve the performance of your business with our free business health checkup.