In an industry defined by innovation and rapid change, the ‘Demo, Sell, Build’ method offers a unique perspective on product development. Ash Maurya at LeanStack has an interesting post about this. However, as with any approach, it comes with its own set of advantages and potential pitfalls.
The ‘Demo, Sell, Build’ approach inverts the traditional product development process. It begins with a functional demo, which acts as a tangible representation of the idea. The demo is then showcased to potential customers and investors to sell the concept before entering the final phase: building the full-scale product.
The advantages of this approach are numerous:
- Early Market Validation: The early demo allows for market validation, which can minimize the risk of investing resources into a product that doesn’t meet market needs.
- Resource Efficiency: Full-scale development only occurs after the product’s demand and feasibility are confirmed, potentially saving resources.
- Customer Focus: The continuous feedback cycle ensures the product is developed around customer needs, increasing its potential for success.
- Speed to Market: Early validation and iterative development can expedite the product’s time to market.
- Attractiveness to Investors: A functional demo and early market validation can make your product more appealing to investors.
However, the ‘Demo, Sell, Build’ approach isn’t without its drawbacks:
- Initial Investment: The requirement of a functional demo at the outset can require a significant upfront investment, both in terms of time and resources.
- Limited Scope: The focus on early market validation may lead to a narrower product scope, potentially overlooking long-term potential or ancillary markets.
- Risk of Overselling: There’s a risk of overselling a product based on a demo that might not fully represent the final product, leading to disappointment or mistrust from customers and investors.
- Reduced Flexibility: Committing to a specific demo can reduce flexibility in later stages, as significant changes could lead to a loss of trust among stakeholders.
The ‘Demo, Sell, Build’ approach is a compelling strategy that places market needs at the forefront of product development. But like all methodologies, it needs to be adopted with a clear understanding of its potential drawbacks. Companies should carefully consider their resources, market, and product type before deciding if this method is the right fit for them.
By understanding both its benefits and drawbacks, companies can make informed decisions and potentially leverage the ‘Demo, Sell, Build’ approach to successfully navigate the challenging waters of product development.