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Houston expert shares why prototyping is so important to startups

Making a product that is worth further investing in, one that customers will want to buy, requires several prototypes, sometimes tens of prototypes to prove the concept and perfect your idea. Photo courtesy of OKGlobal

Rarely in life is anything perfect on the first attempt. Writers write drafts that are proofed and edited. Musicians practice over and over, and athletes train for years to perfect their skills before becoming pros. So, it only makes sense that a product developer would develop a prototype before manufacturing their products.

But why? Why can't a perfectly designed product go straight from CAD to production? In reality, making a product that is worth further investing in, one that customers will want to buy, requires several prototypes, sometimes tens of prototypes to prove the concept and perfect your idea. Success comes through practice, just like with the musicians and the athletes.

Defining "prototype"

The word prototype derives from the Greek word meaning, "primitive form." It's an early sample or model of a product built to test a concept or process. Understanding that a prototype, by definition, is an early form of your final product, know that there is often a compromise between your prototype and the final product design. Differences in materials, manufacturing processes and design may create a slightly different look and feel of your prototype.

A full design build is expensive, and it can be time-consuming, so before manufacturing, we create a prototype. This allows you to look for any flaws and problems, figure out solutions, then rebuild with the updates. The process may repeat multiple times. Rapid prototyping is often used for your initial prototype, allowing you to inexpensively build and test the parts of the design that are most likely to be flawed, solving issues on the front end, before you make the full product.

This necessary step is needed to progress with your product development and take you further toward the commercialization and marketing of your product.

Why prototype?

Prototyping allows you to learn about the product, the design, and the functionality. By doing repetitive prototyping, you eliminate the guesswork and base your decisions on actual data and facts. Don't ever guess. Just learn. Just prototype.

Market Testing
It allows you to put a product in front of your consumers, get their opinion, and make changes based on how the consumer uses the prototype.

SaveMoney
You get to save money on initial product testing, by letting consumers test the product the way they would use it in real life.

Make Improvements
Prototyping gives you the opportunity to make improvements before putting your product into the market. You can see where/if your idea is flawed and flush it out before you manufacture products that won't sell.

SalesForecasting
This is a difficult enough task as it is, but when you have a new product, it's hard to predict how it will fare against other products in the market. By watching how consumers use the prototype, and by seeing it work against other products, you will begin to understand the sales cycle for that product, allowing you to start your forecasting.

Product designers cannot predict how a consumer will react to a new product, so they release several prototypes, and gather feedback, switching up the products until they find what works for the consumer. When the product went to manufacturing, and finally to market, it was almost guaranteed to be a success—an unintended use for prototyping, and yet one of its best uses.

Designers realize that what looks good on paper isn't always what the end-user is going to want. By getting an inexpensive prototype in front of consumers, designers have been able to get quick feedback, adjust the product, and create a winning product.

When it doubt, prototype it out

The beauty of prototyping is that each prototype interaction opens new opportunities to improve your product. In all reality, you will need more than one prototype to develop a truly valuable product. Product development can get bogged down in meetings, where the product is analyzed, and guesses are made as to "the best way," but by getting to the rapid prototype stage, you can skip some of that guesswork and replace it with real information from the customers.


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Onega Ulanova is the founder of OKGlobal.

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Building Houston

 
 

Last weekend was a tumultuous one for founders and funders in Houston and beyond. Here's what lessons were learned. Photo via Getty Images

Last week, Houston founder Emily Cisek was in between meetings with customers and potential investors in Austin while she was in town for SXSW. She was aware of the uncertainty with Silicon Valley Bank, but the significance of what was happening didn't hit her until she got into an Uber on Friday only to find that her payment was declined.

“Being positive in nature as I am, and with the close relationship that I have with SVB and how they’ve truly been a partner, I just thought, ‘OK, they’re going to figure it out. I trust in them,'” Cisek says.

Like many startup founders, Cisek, the CEO of The Postage, a Houston-based tech platform that enables digital legacy planning tools, is a Silicon Valley Bank customer. Within a few hours, she rallied her board and team to figure out what they needed to do, including making plans for payroll. She juggled all this while attending her meetings and SXSW events — which, coincidentally, were mostly related to the banking and fintech industries.

Sandy Guitar had a similar weekend of uncertainty. As managing director of HX Venture Fund, a fund of funds that deploys capital to venture capital firms around the country and connects them to the Houston innovation ecosystem, her first concern was to evaluate the effect on HXVF's network. In this case, that meant the fund's limited partners, its portfolio of venture firms, and, by extension, the firms' portfolios of startup companies.

“We ultimately had no financial impact on venture fund 1 or 2 or on any of our portfolio funds or our underlying companies,” Guitar tells InnovationMap. “But that is thanks to the Sunday night decision to ensure all deposits.”

On Sunday afternoon, the Federal Deposit Insurance Corp. took control of SVB and announced that all accounts would be fully insured, not just up to the $250,000 cap. Customers like Cisek had access to their accounts on Monday.

“In the shorter term, the great news is SVB entity seems to be largely up and functioning in a business as usual manner,” Guitar says. “And they have a new leadership team, but their existing systems and predominantly the existing employee base is working well. And what we're hearing is that business as usual is taking place.”

Time to diversify

In light of the ordeal, Guitar says Houston founders and funders can take away a key lesson learned: The importance of bank diversification.

“We didn't think we needed one last week, but this week we know we need a resilience plan," she says, explaining that bank diversification is going to be added to "the operational due diligence playbook."

"We need to encourage our portfolio funds to maintain at least two banking relationships and make sure they're diversifying their cash exposure," she says.

A valued entity

Guitar says SVB is an integral part of the innovation ecosystem, and she believes it will continue on to be, but factoring in the importance of resilience and diversification.

"Silicon Valley Bank and the function that they have historically provided is is vital to the venture ecosystem," she says. "We do have confidence that either SVB, as it is currently structured or in a new structure to come, will continue to provide this kind of function for founders."

Cisek, who hasn't moved any of her company's money out of SVB, has similar sentiments about the importance of the bank for startups. She says she's grateful to the local Houston and Austin teams for opening doors, making connections, and taking chances for her that other banks don't do.

"I credit them to really being partners with startups — down to the relationships they connect you with," she says. "Some of my best friends who are founders came from introductions from SVB. I've seen them take risks that other banks won't do."

With plans to raise funding this yea, Cisek says she's already started her research on how to diversify her banking situation and is looking into programs that will help her do that.

Staying aware

Guitar's last piece of advice is to remain confident in the system, while staying tuned into what's happening across the spectrum.

“This situation that is central to the venture ecosystem is an evolving one," she says. "We all need to keep calm and confident in business as usual in the short term while keeping an eye to the medium term so that we know what happens next with this important bank and with other associated banks in the in our industry."

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