The product development process
The stages of product development arenât rigid and change with the market, but here are our general recommendations for a well-rounded product development process:
Ideate
The first step to creation is ideation. It seems simple at first glance, but itâs often the hardest part. No matter how bright your team is, ideation can be difficult without an organized approach. Brainstorm, analyze current products, or conduct surveys. Search for inspiration in creative placesâyou never know when you may discover the next big idea.
Research market trends
After you come up with a great idea, youâll need to conduct market research to make sure itâs as good of an idea as you think. Itâs easy to feel deflated if you discover itâs not, but donât give up. Consider revisiting one of your other ideas from the first step.
To make this step easier, try not to get attached to your ideas.
Plan
A solid plan will set you up for success in the prototyping phase. Youâll want to consider all aspects of the product and plan them out before you take it to a manufacturer.
For example, letâs say youâve come up with an ingenious idea for a water bottle. Itâs self-cleaning, stays cold, and infuses water with electrolytes. Youâd want to think through several questions in this phase. What does it look like? How does it open? How big is it? Whatâs it made of? How will it be packaged? Is it portable? And this is just a start!
Prototype
Itâs finally time to take your product from idea to reality. After youâve made a plan, youâll need to start approaching manufacturers (or, if youâre a substantial business, come up with how youâll manufacture the product yourself). The manufacturer is responsible for producing the minimum viable product (or MVP).Â
The MVP is vital because it acts as a data-gathering mechanism. You can give it to customers to test, then gather feedback about what works and what needs improvement. Take your time with this processâthereâs nothing wrong with creating several prototypes to test with many customers before building at scale. Youâll have a much better result in the end, and it is cheaper than producing an item that doesnât sell.
Build the chain
Also known as sourcing, this is the step to determine the process from manufacturing to shipping. Youâll need to determine suppliers and manufacturers, how to store your product, and how your products will ship from the manufacturer to you or your storage facility. Then, test your assumptions. For example, is it cheaper and more reliable to have a product built elsewhere and shipped to you? Or would it be better overall to have a manufacturing facility closer to your storage facility?Â
Once you have a basic plan, youâll need a backup plan. Manufacturers routinely run into issues, and if your primary manufacturer canât produce your product, you canât make money. Build a contingency plan for each aspect of your supply chain.
Collect feedback
You probably have an idea of what your product should cost, but youâll need to take a deep dive into the data to make a final decision. Consider the actual cost of goods sold (COGS) and your profit margin when deciding your ultimate retail price. This can tricky because more costs are often involved than you may initially realize. Create a spreadsheet to break down every expense, from raw materials to shipping costs, storage costs, and manufacturing fees. Consider how taxes will factor into your overall costs. You may also wish to compare manufacturing options to lower your COGS and create a more significant margin. Thereâs a delicate balance to strike because youâll need to generate a healthy profit while also creating a competitive product that customers can afford. Â
Get started with Lucidspark
After youâve made it through these stages, congratulationsâitâs time for launch!
Your team will need help staying organized and aligned throughout every step of the product development process. Lucidspark offers dozens of templates, features, and tools to optimize collaboration and alignment so you can make your best ideas a reality.
