Photo by charlesdeluvio on Unsplash
In the entrepreneurial realm, initiating a startup is merely the tip of the iceberg. The real voyage begins when you delve into the realm of product development. This phase demands a meticulous balance between the perspectives of customers, the core team, and the investors. Here’s a closer look at how aligning these viewpoints can foster a win-win scenario for startups and investors.
Prioritizing Customers and Investors: A Dual Lens Approach
The journey from ideation to realization requires us to momentarily set aside our comfort and adopt a dual-lens – one that encapsulates the expectations of customers and the other, the aspirations of investors.
Through the Eyes of Customers:
- Ease of Use: The primary metric of success is how effortlessly customers can utilize the product or service to fulfil their needs. The term ‘complete’ is pivotal here, as the degree of completion may vary across different customer segments. Also, note that this is not only UI or UX, this is the overall customer journey.
- Service Management: When customers face hurdles in achieving satisfaction, an efficient service management system becomes indispensable. It’s prudent for startups to embed service management protocols from the outset.
- Feedback Loop: A robust feedback mechanism is the linchpin of continuous improvement. This loop extends from the customer to the service team, further to the core team, and circles back with a solution to the customer. Implementing this feedback loop across all touchpoints is crucial for iterative refinement.
Through the Eyes of Investors:
- Return on Investment (ROI): Investors seek fruitful returns, typically within a span of 14-18 months. This seemingly generous timeframe can tighten swiftly. Hence, decisive factors like choosing the right technology, components, and processes should be ironed out even before the clock starts ticking.
- Prudent Technological Choices: While the allure of cutting-edge technologies is hard to resist, the primary allegiance should be towards the invested capital. Making judicious technological choices that align with the budget and timeline is essential to avoid any derailment.
- Investor Framework: Startups are often helmed by vibrant and ambitious minds focused on bringing their dream projects to life. However, the zest to innovate may overshadow the essential managerial controls. Investors can bridge this gap by introducing a universal framework encompassing Finance, Operations, Technology, and Service domains. This framework can act as a scaffold, ensuring that the startup remains on a structured path, mitigating risks, and amplifying the probability of success.
By harmonizing the expectations and contributions of both customers and investors, startups can navigate the intricate landscape of product development with a clearer vision and a structured roadmap. This balanced approach not only accelerates the journey towards achieving market fit but also cultivates a fertile ground for enduring success, ensuring a win-win scenario for all stakeholders involved.