Author Archives: leardonsolutions

How frozen pipes and flooded caravans led to the Floe product

May 15 2012  |   leardonsolutions  |  All Posts, Business Tips, Northern Ireland, Product Development, Prototyping  |  Comment

Necessity is the mother of invention. This phrase succinctly describes Jason Paul, Managing Director and Founder of Apt Innovations, a Northern Ireland, UK based company. Apt Innovations develops and manufactures products that help owners of static and touring caravans, holiday homes, mobile homes, and motorhomes drain the water from the pipes of their homes, thus preventing broken pipes in freezing conditions.

Apt Innovations’ first product, the award winning Floe Drain Down Device, was conceived as Jason needed a simple way to winterize his home without having to make an appointment or pay a professional drain down technician. The Floe is a simple device that hooks to the outside hose tap and utilizes a tire compressor to blow out the excess water in the pipes. Apt Innovations’ Floe was written up in the BBC News article “Cold winter inspires NI man’s pipe business”, won the Best Accessory Award from Practical Caravan, and is making sales inroads in many countries around Europe.

Leardon: How did you come up with the idea for the Floë?

Jason: I own a static park home in the lakes area of Northern Ireland. Sadly we were caught out by bad frost which damaged part of the plumbing system and flooded the home. Normally you would pay someone about $180 to drain it at the end of the season, but this is an antiquated system that entails the service engineer trying to push the water back down through the system (the wrong way) in reverse from each faucet. Unfortunately this is not possible on showers as there are non return valves in them, which only allows water to come out of them (the right way). To a service engineer, the shower therefore must be dismantled, rendering the property useless over the winter months until spring.

I wanted to do two things. First I wanted to be able to drain the property myself, without paying someone and I wanted to use the property throughout the winter months as well as the summer. Therefore my idea connects to an outside tap, air is pushed into the system and water released from taps and shower (the right way) By doing this I do not have to dismantle the shower, so I can use the property whenever I like and drain on leaving. I tend to do this once at the end of the season and a few times in winter. At $180 per draindown, this could amount to just short of a thousand dollars. Floë costs less than $30 and can be used for years, not a bad return.

Leardon: What was the most important thing you learned about the prototyping and new product development process?

Jason: First, get a patent or at least a Non Disclosure Agreement (NDA), then the next most important thing is to get the right people on board at the start. So many people go down a road without advice on relevant areas of their product. I would completely recommend that a company find a very experienced product development company to talk this though to the extent that there are no more surprises or guesswork. This will keep the price of product development and prototyping down to a minimum. Our such advisers were Leardon Solutions. Here you have two sides of advice, one for the business and selling of the product, i.e. what works and what doesn’t and second the engineering advice as to which is the most cost effective, yet visually appealing end product.

Leardon: How did you prototype the Floë?

Jason: I created a very ugly prototype for myself, which worked right through the winter. I then made some slightly more attractive but still inexpensive homemade versions that I sold to people for a very small price. Accepting payment means that there is some skin in the game from the customers and it also proves that people will pay something for an solution. Of course you could provide free samples, it is up to you. These worked for about 25 people through the next winter. It was then that we knew we had a potential product. We then got some Northern Ireland Government funding for a patent and prototype, which we then took to Leardon Solutions to create more basic prototypes and eventually the finished product.

Leardon: What did you learn about manufacturing a product? Any issues encountered?

Jason: It takes time. You need to take this time to get the product right. If you don’t, every thing else that you do can be flawed. A house can be stunningly beautiful, but if built on a flawed foundation, it could fall apart. A product is similar. Say you spend all of your time making a product, but there is a change that has been overlooked or not tested correctly. This could cause you problems. By the time you have realised it, you may have developed the packaging and photography which would all be wasted if the product has to be changed, or even sold some, in which case you will face returns.

Take time to test every opportunity and suspicion that you might have. I know most are bursting to get it onto the market but understand it will save you time in the long run.

Leardon: Why is Northern Ireland a great place to prototype and develop products?

Jason: Once upon a time Northern Ireland was a powerhouse in Engineering, Shipbuilding and Linen Manufacture. Much of the big industries sadly died away over the years leaving a large proportion of Service sector businesses in its stead. This is clearly not good for growth as manufacture and export are paramount. Northern Ireland has always had innovation brimming under the surface and now I am glad to say that local councils and Government are really pushing tech and innovation once again, really putting Northern Ireland on the world map again, so much so that the head of Government for Industry in China, felt it prudent to visit Northern Ireland last week

Leardon: What recommendations do you have for others with product ideas?

Jason: Get your product really ahead of the game and then when you are ready to be first to market, showcase the life out of it. It is being first to market that is important and stay there. Use every piece of homemade PR that you have in your arsenal. Magazines love to write articles for free on new stuff, in fact get someone to write it for you, then send it out to a range of media, who will print it up for you.

Time your marketing to when it will be most effective, particularly magazines. Newspapers and radio are more day by day but magazines take months. Also, use online forums etc, do a video and put it on youtube.com, then link it on your website. Use all of this.

Visit Apt Innovation’s website for more information and to get updates.

Need more information on new product development or the manufacturing process? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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Prototype or Crowdfunding. Which Comes First?

April 10 2012  |   leardonsolutions  |  All Posts, Business Tips, Product Development, Prototyping  |  Comment

With the recent passage of the JOBS (Jumpstart Our Business Startups) Act, we have had an increased number of questions from people asking how to best get funding from crowdfunding sites such as Kickstarter and IndieGogo. Many of the discussions revolve around the basic question: Which comes first, the prototype or the crowdfunding? Basically, entrepreneurs with good product ideas are wondering if they should go out and seek crowdfunding with their idea sketched onto a sheet of paper or if they should develop a decent prototype to communicate their product idea. The simple answer is that entrepreneurs need a prototype to maximize their changes of getting crowdfunding.

A PROTOTYPE SHOWS YOU ARE WILLING TO PUT SKIN IN THE GAME
If you truly believe in the product idea, you will inevitably put “skin in the game”, meaning that you will use your own money to get as far as possible prior to receiving outside funding. Funders need to know you are committed to the project and spending your own money on a prototype will help convince them of that.

Nothing is better than showing off your product idea with an aesthetically pleasing and functional prototype. One way to keep the prototyping costs as low as possible is to build a minimum viable prototype. A minimum viable prototype is similar to a minimum viable product. The idea behind the minimum viable prototype is to only develop and prototype those important product functions and features that allow you to demonstrate what the product does on your project video. In a minimum viable prototype, there is no need to focus on the corner cases of functionality which will take most of the product development focus. Keep the crowdfunding prototype simple, otherwise you will spend more money than necessary and risk confusing the people who might fund your project.

YOUR PROTOTYPE IS AN EXTENSION OF YOU AND YOUR COMPANY
Interestingly, a prototype is an extension of you, your company, and the values of your company. In other words, the quality of your prototype gives potential funders a first impression of you and your efforts. Give them your best first impression by having a great prototype.

When people see your prototype, they will immediately know if you have thought through only the simple aspects of your product idea or if you have dug deep into the critical aspects of the product such as the user and human interface, the detailed design, the interactions with other products, and the manufacturing or assembly issues. Also, the prototype will show if you have a true innovation, an improvement over an existing product, or a trivial reinvention. Create your prototype so that is demonstrates the important functions of the product and looks good.

Producing prototypes is one of the first challenges of product development. Based on the quality, functionality, and overall look of the prototype, people can easily gauge how prepared you are to take on the challenges ahead. Show them that you are prepared for the future challenges of product qualification, production, and manufacturing scale-up by demonstrating your prototype is the best possible embodiment of your product idea.

DON’T TAKE MONEY UNTIL YOU ARE READY TO EXECUTE
Once you receive funding from the crowdfunding sites, you will be required to fulfill the promises stated in your crowdfunding project. If you have demonstrated a functioning prototype in your project video, you will be best prepared to step into production and manufacturing and will not have taken people’s money without a clear vision for the funding.

Developing products that meet the quality and functionality goals isn’t always easy so work with a respectable engineering and manufacturing team that understands the needs of entrepreneurs. This team should be capable of providing end-to-end product development, from the initial prototype development through production and manufacturing fulfillment.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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Best Tips when Designing a Product

April 3 2012  |   leardonsolutions  |  All Posts, Business Tips, Product Design  |  Comment

Leardon.com, Prototype, Benchmark, Think Simple, Product Development

Below are a few tips to consider when designing a product. These tips are based on years of experience from the Leardon team and are overall the best high-level tips to take into consideration as you begin your entrepreneurial venture into new product development.

A good product development team consists of individuals from different disciplines with diverse goals, objectives, and perspectives. When at the stage of designing a product, be sure to choose a group of talented individuals that are able to compromise for the success of the project.

The product designers and engineers on a project are key to a successful product design but typically have different objectives for the project outcome. Engineers tend to enjoy the “objective” goals of product development such as product reliability, quality, dimensional details, and manufacturing processes while product designers tend to focus more on the “subjective” aspects of product development such as customer profile, product design features, human factors, and the user interface. When embarking on the initial stages of product design, it is important that all team members work together to achieve the goals of the project. Early in the product development life cycle, consider these three tips when starting the product design phase of the product.

Think Simple
There is no reason to complicate any problem and product design development is no exception. The best product designs are typically those that form a simple connection between function and design. If a designer overcomplicates the design, the customer will be alienated and the resulting product will not do well in the market. The goal of a good product design is to pull in the customers with a nonthreatening design that seems inviting and easy to use.

When initiating the design phase of the product, be sure that the design team thinks “simplicity” so that the design concepts, user interface, and human factors can be easily implemented later down the product development life cycle.

Benchmark
It isn’t necessary to reinvent the wheel and in fact sometimes customers would prefer that you don’t. It is a good idea when starting out on the product design path to review and research all the competitor products on the market and gauge which design features make the product successful and which resulted in failure in the market. Obviously, improve the successful features and avoid the failures.

When benchmarking new products, evaluate how the similar features similar are implemented in product design and then determine how new features and functions can be implemented into the product design. Remember not to change things that are familiar and mainstream for customers. For example, it would be a bad idea to try and reinvent how the automobile gear shifter is designed and integrated into the interior design. Customers are too familiar with the current embodiment and would probably reject any major design changes.

Prototype and Test
Once the first release of a product design is “ready for the world to see”, it is best to prototype and test the design prior to releasing the design to the engineering team for detailed engineering in CAD. There are many ways to prototype the design, including foam models, rapid prototyping, computer simulations, or functional prototypes. When testing the prototype, show it to people unfamiliar but interested in the product. The test can be done through focus groups, informal studies, and on-line surveys. It is best to interview as many people as possible to be sure to get a large amount of feedback from a diverse group. Once this feedback is received, implement this back into the product design to improve the design to meet as many requirements as possible.

If you are interested in showing off your work, learning more, or posting topics for discussion in the industrial and product design community, you should visit Product Design Forums.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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Seeking Investment To Fund Your Product Idea? Helpful Tips

March 27 2012  |   leardonsolutions  |  All Posts, Business Tips, Inventing Profit, Product Design, Prototyping  |  Comment

Crowdfunding, Leardon Solutions, Product DevelopmentA common question asked by start-ups, entrepreneurs, early stage engineering teams, inventors, and innovators early in the product development life cycle typically revolves around how to get early investment to develop their product idea and take it to market. This question is usually asked when the product idea is in the pure concept phase without intellectual property, prototypes, or business plans. In this stage, the product idea isn’t very valuable to an investor so it is necessary to take the idea to the next level to draw in potential investors or individuals on crowdfunding sites. To best prepare for finding money to take the product idea to the next level, it is necessary to pull together a Proof-of-Concept Prototype of the product idea and provide the Proof of Demand for their product idea. With these in hand, the team seeking money will be way ahead of others and will stand out to angel investors, early stage investors, and crowdfunding sites.

A business plan is important if an entrepreneur or start-up company is setting out to find funding for their idea. The work done to pull together the business plan will be summarized in the executive summary which will be handed to the potential investors or shown on the crowdfunding sites. Three absolutely important parts of the executive summary in this early stage are The Problem, The Solution, and The Opportunity. These parts of the executive summary will prove that the team seeking funding has identified the problem that the product is trying to solve, has shown how the product solves the problem, and has proven that customers want to buy the product.

A Proof-of-Concept Prototype is necessary to show that the product solves the identified problem as described and also to help demonstrate the Proof of Demand in the Market. People handing out money are looking to see that the team seeking the money has proven that the product concept functions as expected and that this Proof-of-Concept Prototype has been used by potential customers that would buy the product if it existed. The more data that can be gathered from real people showing that the product is useful to solve their problems, the more convincing the pitch to the investors or crowdfunding sites. Proof-of-Concept Prototype and Proof of Demand are the two key areas that investors are evaluating so that they make a successful investment.

No matter if you are trying to get investment from crowdfunding sites such as Kickstarter, angel investors, accredited investors, SBA loans, small business innovation research grants (SBIR), or innovation vouchers in some E.U. countries, here are some tips on preparing for finding investment.

  • Be sure to know how much money is required to take the product to the next level. If a crowdfunding site such as Kickstarter is being used, make sure that the expected project costs match the crowdfunding “ask”. The money received must be enough to deliver.
  • If you are using angel investors for early stage or seed funding, be sure that you communicate the sustainable competitive advantage of your product through the demonstration of the Proof-of-Concept Prototype.
  • In order to find investors for your company, put your network to use. You will probably find that within the list of people you know, somebody will be able to refer you to somebody who funds start-up or early stage companies.
  • If you truly believe in the product idea, you will inevitably put “skin in the game”, meaning that you will invest your own money to get as far as possible until you receive outside investment. Investors need to know you are committed and spending your own money will help convince them of that.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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What Your Prototype Says About You

March 20 2012  |   leardonsolutions  |  All Posts, Insider's Perspective TIps, Product Development, Prototyping  |  Comment

Product Development, Leardon Solutions, Manufacturing, San Diego, Southern CaliforniaDesigning and fabricating prototypes during the product development life cycle is a critical part of the product learning process. Successful prototypes will prove that the product idea is feasible, will help qualify the engineering design, and are needed to receive customer feedback prior to producing higher production volumes. The interesting thing about a prototype is that it is an extension of you, your company, and the values of your company. In other words, these prototypes give others a first impression of you and your efforts. Below are four questions investors, distributors, customers, and suppliers will immediately answer upon seeing your prototype:

(1) At what stage is the product in the product development life cycle? A prototype will portray the stage of your product in the product development life cycle. It is immediately apparent to an expert if your product is 5% complete or 95% complete after seeing the prototype. It is important to accurately describe how far along the product is in the product development process when speaking with experts, otherwise it will be very clear that you don’t know much about developing products.

(2) How well have you thought through your product idea? The prototype is a physical embodiment of your product idea. When people see your prototype, they will immediately know if you have thought through only the simple aspects of your product idea or if you have dug deep into the critical aspects of the product such as the user and human interface, the detailed design, the interactions with other products, and the manufacturing or assembly issues. Also, the prototype will show if you have a true innovation, an improvement on an existing product, or a trivial reinvention. If you show up to a meeting with a product prototype that only displays the external features of the product but doesn’t demonstrate the functionality, you will get many questions about how you intend to design the product so it functions properly. If you say “I’ll let the engineers handle that….”, then it will be apparent that you haven’t thought through the idea well.

(3) Do you understand the costs associated with developing a product? When an entrepreneur is in a meeting with a potential investor, the investor is typically looking very closely at the financial forecast and plan to determine if it is realistic. If an entrepreneur brings a mature production prototype to this meeting, the investor will expect that the financial plan has very detailed and accurate numbers. This production prototype allows the entrepreneur to get accurate quotes on the costs associated with taking the product to the next level. If the prototype is only at the proof-of-concept level, the financial plan will include rough estimates and the accuracy of the financial model will be scrutinized in detail.

(4) How prepared are you for the challenges ahead? Nobody ever said that product development is an easy endeavor. There are many roadblocks and potholes on the product development path that must be overcome. Producing prototypes is one of the first. Based on the quality, functionality, and overall look of the prototype, people can easily gauge how prepared you are to take on the challenges ahead. Show them that you are prepared for the future challenges of product qualification, production, and manufacturing scale-up by demonstrating your prototype is the best possible embodiment of your product idea.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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Tips to Cut Product Development Costs – Part 2

March 13 2012  |   leardonsolutions  |  All Posts, Business Tips, Manufacturing Tips, Product Development, Prototyping  |  Comment

Leardon Product Development Tips, Manufacturing ServicesIn Part 1 of Tips to Cut Product Development Costs, three ways that innovators, entrepreneurs, start-up companies, and small/medium enterprises can be smart and spend the least amount of money throughout the product development life cycle were discussed. Here are the next three ways that entrepreneurs, innovators, or small companies can save money without cutting corners or skipping product development phases.

Avoid Multiple Hand-Offs During the Product Development Life Cycle
Most entrepreneurial, start-up, or small/medium companies do not have large internal staffs to handle all stages of the product development life cycle. These companies typically nearsource or outsource much of the work in an attempt to minimize product development costs and maximize development speed. While nearsourcing and outsourcing can improve your costs and speed, it unfortunately can create a costly and slow system if not managed properly.

Many service providers and suppliers do not provide an end-to-end product development solution from product idea to manufacturing, forcing companies to hire multiple service providers throughout the product development life cycle. When entrepreneurs piece together a product development team by hiring these outside firms, an inefficient team that doesn’t have visibility to the tradeoffs between cost, schedule, and scope is sometimes created. To create an efficient system, the innovator or entrepreneur should try to minimize the number of hand-offs throughout the cycle by hiring an end-to-end engineering, prototype, and manufacturing firm that internally handles all the hands-offs without dropping or losing any of the knowledge gained in the last phase.

Here are some tips for an efficient product development team:

  • Have one experienced internal program manager for the complete project that is responsible for product/project cost, schedule, and scope.
  • Minimize the number of hand-offs by hiring one company that can take the project from design concept to manufacturing.
  • Eliminate any supplier agents, go-betweens, or representatives that don’t allow you to work directly with the suppliers doing the work.

Don’t Buy Production Tooling Until Final Production Qualification.
When a product enters mass production phase, fabrication methods different from those used to produce prototypes are required to meet the quantity, cost, and schedule goals of mass production. Some examples of these production tooling methods include injection molding for plastic parts, progressive stamping for metal parts, production lines for efficient assembly, and wave soldering for printed circuit board assembly. Prior to starting mass production qualification, there is no need to purchase these production tools early in the product development life cycle. Delay the cost of these production tools by using early proof-of-concept and design prototypes for as much testing as possible.

There is usually no need to spend money on any production tooling in the proof-of-concept or design prototyping phases. Even if a production-like method must be used to produce a part in a prototype, the cost can be minimized by fabricating only what is absolutely necessary to make the parts. For example, if you are producing a rubber seal in a prototype, a prototype tool can be fabricated inexpensively to yield the high quality part required. Do plenty of research if a prototype company says that they need to produce a high-volume production tool for a part being used in your prototype because more than likely this is not required.

Minimize the Amount of Product Inventory Purchased.
Once you enter into the production qualification phase, try not to lock up cash in expensive inventory by purchasing large quantities of your product. Work with a supplier who is happy to provide you with a smaller volume, say 1000 production products, that will allow you to test out the market prior to ordering more. This will also prevent expensive inventory reworks.

A misconception in the world of entrepreneurial product development is that all suppliers require entrepreneurs to buy tens of thousands or even hundreds of thousands of products on their first order. For a custom product, it is recommended that the entrepreneur only buy as many products as necessary to fulfill the immediate customer demand of the product. There is a high chance that changes will be required as sales begin so keeping inventory low will minimize the financial pain of any design changes, reworks or repairs.

There are many entrepreneurs who are “up-sold” to higher quantity orders for a lower product price. There are other entrepreneurs who are shocked to learn that a supplier is unwilling to take a low quantity order and will not to work with the customer unless a large order is placed. It is important to know the prices at all order quantities early in the relationship with the supplier. If the supplier is unwilling to fulfill low quantities in the range of 1,000 products, it might be best to switch to another supplier. Chances are high that there are hundreds of other suppliers that are capable of supplying the product and willing to work with entrepreneurs.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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Tips to Cut Product Development Costs

March 6 2012  |   leardonsolutions  |  All Posts, Business Tips, Manufacturing Tips, Product Development  |  1 Comment

Leardon Product Development Tips, Manufacturing ServicesMany innovators, entrepreneurs, start-up companies, and small/medium enterprises have very limited product development budgets. Therefore, these companies need to be very smart about properly spending their money to continue moving forward in the product development life cycle and saving cash for later in the product development game. In order to save costs, many organizations try to cut corners by integrating or altogether skipping product development phases. This not only ends up costing more money but the total time it takes to complete the product will also inadvertently increase.

Product Development is a process that when followed properly results in a tangible product that can be sold to customers for revenue and hopefully profit. In order to get quickly into the revenue stage, it is important to develop a process that results in fast product time to market, high quality, and minimal development costs. Throughout this process, there are ways that the entrepreneurs, innovators, or small companies can save money without cutting corners.

This is the first article of two providing tips on how how entrepreneurs and companies can be smart and spend the least amount of money throughout the product development life cycle. Check out these first three tips:

Define Your Product Before Starting Anything!
This might sound like an obvious suggestion but many companies and entrepreneurs begin product development without really knowing what they are trying to design and produce. The first step before commissioning new product development should be to document the required features and functionality so that there are goals for the team to pursue. Without first defining and communicating these requirements, the team will be moving forward blindly, wasting valuable time and money on unnecessary changes caused by the vagueness and ambiguity of the cosmetic, material, functional, and engineering requirements.

One way to compile a complete list of product specifications is to answer the following questions:

  • How will the product perform and what are the functional characteristics?
  • Will the product interface with other products outside of your control?
  • What are the industrial design requirements (the look of the product)?
  • What are the human factors requirements (the feel and human interaction of the product)?
  • Are there any installation, support, service, and maintenance requirements?
  • What type of qualification, regulatory, safety, and standards compliance are required?
  • Should the product be compatible with other products and if so what are these requirements?
  • What are the packaging, shipping, and labeling requirements?

The effort required to generate the product specifications list might seem unnecessary or excessive before starting new product development. On the contrary, this list is necessary to determine the product goals, will be used throughout the product development life cycle, and will save the team valuable time and money by focusing the team on the proper goals and objectives.

Make Sure The Product Functions as Envisioned.
Once the product specifications have been defined, the team must determine which specifications have yet to have technical feasibility proven. This phase of proving technical feasibility requires the use of proof-of-concept prototypes that bear little resemblance to the final product. As the name implies, the goal of this proof-of-concept prototype is to validate that the idea and concept is technically feasible and functions as envisioned.

For complex products that have multiple functional aspects, do not try to save money by integrating all of the functions into one all-inclusive prototype. Instead, it is more efficient to create proof-of-concept prototypes for each of the independent functions of the product. Remember that the goal is not to make a prototype that looks like the final product. The goal is to prove that it is possible to make the prototype function as specified in the product specification list. Making multiple proof-of-concept functional prototypes will allow the team to efficiently make changes to each prototype to find the optimal conditions that result in the function required.

Limit the Quantity and Increase the Utility of Prototypes.
Every prototype fabricated in each product development phase should be utilized as efficiently as possible. This means that there should be a qualification and test plan associated with each prototype. By documenting the test plan for each prototype rather than just blinding ordering a large quantity of prototypes, the organization becomes aware of the costs associated with each prototype while increasing the utility of the prototypes.

During the product development life cycle of the floe from Apt Innovations, the qualification tests for each prototype produced were clearly specified. As quoted in the BBC news article, Managing Director Jason Paul states that the prototypes looked “smarter” than past prototypes but in fact these prototypes were also smartly utilized. New new prototypes were only ordered after qualification tests were performed and design changes were required, saving Apt Innovations significant money and minimizing waste.

Only fabricate the quantity of prototypes sufficient to meet the qualification needs of the team plus a small number of replacements. Do not order a high quantity of prototypes in order to get a lower price per prototype. The additional prototypes purchased will usually be a total waste of money since design changes and prototype reworks could be required after performing qualification testing. Even worse, the additional prototypes might need to be scrapped as significant design changes could be needed to continue the qualification testing.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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Business Tips for Entrepreneurs with Prototypes

February 28 2012  |   leardonsolutions  |  All Posts, Business Tips, Product Design, Product Development, Prototyping  |  Comment

Leardon Solutions, Business tips, Product DevelopmentEntrepreneurs who are building a company around a product idea and are following the proper steps of product development typically have a prototype built. Of course, it is a natural part of innovation to build a prototype but sometimes these prototypes are not used to their full potential. Here are five business tips for entrepreneurs on what to do with a functional and professional looking prototype.

1. Develop realistic cost models using the prototype design.
Developing credible financial plans is absolutely necessary for the entrepreneur to properly step out and launch their product into the market. When the entrepreneur has a prototype, enough information exists to develop realistic financial models. The prototype design will allow the team to work with suppliers to determine the expected non-recurring expense (production tooling, set-up costs, engineering expenses, qualification costs, etc.) and the total cost of the product (direct materials cost, direct labor cost, and indirect costs such as support labor, distribution, and shipping). These are important inputs into the financial model that are used to accurately portray the long term financial forecast.

SCORE, a non-profit entity that provides business advice, has many good profit and loss and cash flow templates that can be used to develop these models. If an entrepreneur is seeking investment to take their product into production, a three-year cash flow statement will be important to determine the amount of cash needed to build the company.

2. Demonstrate the intellectual property for potential licensees.
Entrepreneurs typically protect their product idea by filing for intellectual property such as design patents, provisional patents, utility patents, copyrights, or trademarks. Many times, the goal is to “sell” this intellectual property to licensees in return for a small percentage of sales and let the licensee handle all the manufacturing and distribution. This is convenient since these licensees typically already have factories and sales channels in place. The prototype is a great method of demonstrating the intellectual property to these potential licensee.

3. Include the prototype as the centerpiece for investor presentations.
An article in Entrepreneur Magazine confirms that professional prototypes will help an entrepreneur describe their product to investors. When you are up in front of potential investors, a great looking and functional prototype can be the centerpiece of the presentation and can more effectively describe the product than any words on a presentation.

While a prototype is essential in this presentation, remember that it is also necessary to be working with a great product development team. Investors not only invest in the product idea, they also invest in the team. Always be sure to have the right people on your team.

4. Receive feedback from target customers, distributors, buyers, and retailers.
A prototype is a great tool to get valuable feedback from all potential customers. These customers not only include individuals that might purchase the product, but also distributors, retailers, and buyers for retail chains and catalogs. Put your best foot forward with an excellent looking prototype and absorb the feedback received. Try not to go on the defensive when bad feedback is received. One trait of a good entrepreneur is to find, admit, and correct mistakes or issues in your product.

It is also important to show your prototype to industry influencers or thought leaders for feedback. Not only do these individuals have great insight to the trends in the industry, but they can indirectly influence others to purchase your product.

5. Validate the idea on crowd funding sites such as Kickstarter.
On crowd funding sites such as kickstarter.com, creative companies offer unique benefits or pre-ordering opportunities to individuals who pool their money to help support the effort of a company. In essence, these crowd funding sites are not only a good way for an entrepreneur to get the financial resources to manufacture their product, but also a great way of validating their product ideas. When product description, pictures, and videos of the functioning prototype are posted on the crowd funding websites, it allows potential customers to evaluate the idea and determine if it would be worth ordering. If the idea is fully supported, not only does the entrepreneur receive the funds to start manufacturing but also validates that the idea will actually sell once available.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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Maintain A Strong Relationship With The Supplier: Tip #4:

February 21 2012  |   leardonsolutions  |  All Posts, Insider's Perspective TIps, Manufacturing, Manufacturing Tips, Product Development, Program Management, Supplier Management  |  Comment

Product Development, Leardon Solutions, Manufacturing, San Diego, Southern California

Tip #4: Maintain a Strong Relationship with The Supplier

There is a lot of articles written about the importance of the supplier in new product development and innovation. Most of these articles focus on topics such as supply chain management, supply management, supplier relationship management (SRM), and quality control. While these topics cover important issues such as product quality and continuous improvement plans, there is a lack of research and discussion about the importance of a strong supplier relationship when it comes to new product development.

Leardon Solutions has written about how to achieve strong supplier relationships in past articles focusing on supplier capability and commitment. In order to get the necessary commitment and capability from suppliers, there are Five Vital Characteristics that must be implemented into the relationship. These are:

The relationship:

  • Encourages respect
  • The relationship is a partnership between two trusting parties
  • The relationship supports growth and development of the two parties
  • The relationship consists of managed risk taking
  • Both parties have complementary and balanced capabilities.

Each of these vital characteristics impacts the supplier commitment, capability, or both. If these improve, the relationship will improve to the point of becoming a strong relationship. There are three types of relationships, simply stated as Poor, Fair, and Strong:

POOR RELATIONSHIP: A Poor Relationship exists when the supplier does not commit to the relationship and is not a capable of performing the job at hand. In this case, the supplier must demonstrate some desire to increase their capabilities or their commitment, otherwise another supplier should be chosen.

FAIR RELATIONSHIP: A Fair Relationship exists when the supplier is either fully committed to the relationship or demonstrates good capabilities, but not both. It is possible for this type of relationship to be successful in the short term but typically the relationship will fall apart unless improvement is made.

GOOD RELATIONSHIP: A Strong Relationship exists when the supplier exhibits full commitment to the relationship as well as demonstrates excellent capabilities. This is the pinnacle of supplier management and these strong relationships will become long-term success.

Of course, the goal is to achieve a strong relationship because when this is achieved, there are many benefits including:

  • The supplier feels accountable for the success of the project and acts accordingly.
  • The teams collaborate efficiently on solving issues and defects, even when the supplier didn’t cause the issue.
  • The supplier might give preferential treatment such as payment terms, “jumping the production queue”, allowing lower production volumes, or improved pricing.

These are just a few of the benefits of a strong supplier relationship. Successful product development teams understand that strong supplier relationships are absolutely necessary for success and therefore focus on maintaining and improving these relationships.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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How to Avoid Feature Creep and Scope Creep: Tip #3

February 14 2012  |   leardonsolutions  |  All Posts, Insider's Perspective TIps, Manufacturing Tips, Product Development  |  Comment

Product Development, Leardon Solutions, Manufacturing, San Diego, Southern California

Tip #3: How to Avoid Feature Creep and Scope Creep During Product Development Lifecycle

Scope Creep. Feature Creep. Creeping Featurism. Featuritis. Project Creep. These are all terms used to describe the state in a project where the scope or features of the product continually change as the project progresses. Many of the articles written regarding scope/feature creep discuss software feature creep or methods of managing creep. Of course, feature creep is an issue that can adversely impact any project, including software, hardware, or service. If it isn’t avoided and managed properly, the project will end up at the point of no return.

Here are some methods of avoiding feature creep during the product development process.

A. Focus the team on the project priorities. There is always a tradeoff between product cost, program schedule, and product features/scope that cannot be ignored. One objective cannot be changed without affecting the others and a successful team leader is one who will prioritize these objectives. If the team is focused on these priorities then feature creep will take a back seat to proper program management. For example, if Project Scope is prioritized on the program, then it would be acceptable for the program manager to methodically consider new features. But if Product Cost or Program Schedule were the highest priority, changes in features would typically never be considered. One program that was successfully introduced into the market in less than six months was the Floe Winter Drainage System by Apt Innovations located in Northern Ireland, United Kingdom. The Managing Director Jason Paul was very thoughtful in his approach to managing the project. He stated clearly that the priorities of the program were (1) Program Schedule, (2) Program Scope, and (3) Product Cost. This allowed him to make wise decisions about avoiding any creep of the product features when he learned more about new potential customer segments for his product. He left these changes to the next product iteration.

B. Create and manage a product requirements document. It is extremely important that a program is initiated with a formal phase of documenting the program requirements. These requirements are driven by the customer and require in depth research to determine exactly what the customer wants and needs. Once the customer requirements are documented, the engineering team can translate these customer requirements into engineering requirements. This allows the engineering team to initiate their work and begin design and qualification. When features are changed or new features are introduced, the engineering team needs to revisit the engineering requirements document and rework many of the designs and qualification tests already performed. This results in wasted time and money.

C. Feature scope, if any, should only be customer driven. If a product program is being managed with a top priority of product scope, changes in the scope or features can be considered. Sometimes it is necessary to make changes to the features based on new learning from the market and customers. It should be noted though that the marketing team needs to be careful that they don’t react too quickly to requests by customers as this will end up whip cracking the engineering and development team. If features changes are going to be made, make sure that the customer was the original reason for the change.

D. Create a process to evaluate all potential changes to the feature list. When changes are going to be seriously considered, it is necessary to have a team process that is used to make a decision to implement or discard the new feature. The program manager should implement a review process that the whole team understands and follows. The evaluation team should consist of all functional members including technical, financial, marketing, and sales so that all member’s needs are considered. The decision criteria should be an objective metric that considers all financial and schedule outcomes of the decision such as net present value (NPV).

Successful product development teams focus on their original product requirements and don’t let scope and feature creep derail their schedule and financial goals.

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com

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