Most people think that bringing a new electronic product is a very easy task. They imagine that you only need to create a prototype, manufacture the product, and start selling it. There is nothing simple about introducing a new product in the market. When dealing with complex products such as electronic devices, it is even more challenging. Startups in the field of electronics are expensive and require a high level of risk tolerance. The risk tolerance builds confidence in potential investors’ who would be willing to be part of this investment. The following three steps show how to take a product through the process of concept to the market;
Create a prove of concept
During this step, you should create a design prototype. Remember to reduce the cost of production as much as possible. In the field of electronics, you can best achieve this by the use of electronic modules or a development kit. A development kit is used to create the electronic prototypes. It does so without necessarily have to use custom made circuit boards. It is a board that can be set up to act as the brains for your proposed product. The most popular electronic kit is known as Arduino. It is cheap and easy to put them together, to act as a functional proof of your prototype.
You will then use electronic modules to perform various sub-functions in your prototype project. For example, they may be used to perform functions such as GPS, Bluetooth, WIFI and video.
At this stage, the purpose is to prove that your end product is viable and cost effective. You will not have to take the development kit to the final presentation since it will be too bulky.
2. Prove that your product will sell
In this stage, you create a prototype which can be sold. The purpose of this prototype is to test the market and collect the feedback from the end users of the new electronic gadget. Do not assume that you know what the consumers want. The best way to tell what consumers want is to engage them directly. At this moment, you will know if it is necessary to proceed to a hybrid version of your prototype. The hybrid version will have additional features such as Bluetooth, WIFI or GPS. You should be in a position to product something that can be sold, even not at a profit. The main purpose of this stage is market data, and not profit. It means that you may have to sell your product at a loss. Make use of electronic models to implement advanced features of your product. You should also get a certification from the relevant government department, to authorize you to continue producing the prototypes.
Here comes the Profit
It is now the time to focus on the benefits. Once you have proven that the consumers will purchase the new electronic gadget, it is time to produce it and make sales. You will have to develop a complete custom made circuit instead of using the modules. This will cut your production cost. As an entrepreneur, do not forget to reduce the risk within the small steps in the development of the product. When the sales volume is high enough to warrant high upfront costs, you may then shift to a cheaper manufacturing area such as Asia.