As soon as you’ve had an idea for a product, you’re losing money every day it’s not on the market. Stack the odds of success in your favour by working with an electronics design consultancy.
This way you can have access to the right expertise to support you through every step of the product journey, from the initial discovery meeting through to New Product Introduction for volume manufacturing.
Gain access to the right blend of skills and processes to get to market quickly and with confidence
We’ve helped companies create proof-of-concept technical demonstrators with a wealth of experience in creating tangible prototypes that delight your investors and stakeholders.
Check my process – Ask us to look at your product development journey and see if you are on the right track.
Will my product idea work?
If you have a product idea you are probably giddy with excitement. While the idea is still fresh in your mind we want to give you the confidence to take the next step.
In other words we can help validate your product idea through early testing.
This can be especially useful when working with emerging technology.
What stages are there in the product development process?
There are 8 stages in the process of electronic product development, according to our in-depth article based on our extensive knowledge of the subject.
There are pitfalls you need to avoid in each of these stages.
How to avoid them
Read about how to avoid all of the above in our product development process stages blog.
What are the reasons behind product failure?
There are a number of reasons why products which show a lot of potential fail to succeed.
There is already a solution to the problem your product solves – Market research is really important.
The product costs too much to develop – It’s important to understand all the costs involved in the process.
Failing to test the product – Environmental testing, edge cases, PCBs set up wrong. Efficient product testing is essential.
Not using quality control – The sooner production or material issues are spotted the lower the cost will be to fix it.
Misleading customers – Be careful not to promise more than your product can deliver. Initial sales on false promises will lead to bad reviews and hurt you later.
Other ways products can suffer
Feature creep – Adding too many features can add unnecessary costs or make the product too expensive for the target audience.
Overspending on your design budget – It is important to constantly track your spending and to try and predict any unexpected costs that may occur.
Not pricing your product correctly – You need to balance product profitability with entering the market at the right price for your customers.
Leaving no spend for advertising and marketing – However brilliant your product is, it won’t sell if noone knows about it.
Temperatures can have huge implications on the reliability of a product as well as its’ efficiency too.
Why heat is a bad thing for electronic products
Heat leads to wasted energy and high temperatures are not ideal for electronic components. Elevated temperatures can have hugely detrimental effects on batteries.
This method is a useful way of testing your products in the heat and the cold. This extends beyond extreme hot and cold temperatures and can also look at humidity as well as temperature fluctuations.
In addition environmental test chambers can be used to speed up the testing process, looking at a range of environments.
The costs of a product unit go beyond negotiations with your manufacturing partner.
This is because the development part of product development plays an instrumental part in how much your product costs.
Beware features creep
For example features creep can occur where by trying to meet all the demands of the end user the product becomes overburdened by features which can drain the battery life. The extra features may not be used by the majority of customers. This inflates the costs to them of buying the product and reducing the perceived product value.
It is also worth noting that components can play a large factor in the unit cost and pose a risk if these components become obsolete, leaving you stranded when you try and produce more volume.
Ignys have been around for over 4 years, founded in 2017 by experienced engineer Richard Fletcher who dreamt of helping engineering teams, product developers, in the UK and beyond, and great tech inventors to bring great ideas to life.
We can help you from the early stages of your project from product concept and idea generation right through to scaling up to volume manufacture through our network of partners.
Chip shortages are causing concern for everyone involved in electronic product development. We spread the word with our in-depth blog on why chip shortages are happening and what to do about them.
Where does the money come from for product development
So, you have a great idea for a product and now it’s time to bring it to market. There is a lot to keep in mind, but the main requirement is money. The question on the mind of pretty much every developer in this situation is, where does this money come from? Don’t worry, we’ve put a few options together for you below:
Personal Funding
Your personal bank account is the first place that you’re going to need to look for funding. Maybe you’ve had a lucrative business in the past and are now looking to fund the development of your new idea. The Bank of Mum & Dad, and other relatives willing to fund part of your financial needs also fits in here. Perhaps you’ve won the lottery or have a very generous aunt. Either way, you are going to need to fork out some money to get the development process underway.
Bootstrapping
Similar to dipping into your own funds, bootstrapping allows you to get your project started. However, it is done at a much slower pace which allows you to keep your finances in check while still progressing with your project. You may consider a part-time job that coincides with this to keep a flow of revenue into your product development.
If you can bootstrap your business until there is, at least, some revenue coming in, you will be in a far better position to raise external investment.
External Investment
If you aren’t able to rely on personal funding to get your product to market, you may want to look into external investment. This can be in the form of borrowing from investors or taking out a loan. Alternatively, you can try your hand at crowdfunding or equity funding. These are all good options that provide you with the necessary funds but will come at a cost at some point down the line.
External investors will look at what progress you have made using your own personal funds before they will invest in your business. There are very few external investors who will invest in something when you haven’t invested yourself.
R&D Tax Credits
R&D tax credits are a lifesaver for serial development companies. This allows your company to claim tax relief if you are spending money on research and development. So if you are continually researching and developing new products or making alterations to existing products, check your eligibility for R&D tax credits. The R&D from previous projects can help pay off a chunk of the next one.
Overall, navigating the world of product development is no easy task, especially when you are unsure of where your funding is coming from. The best way to approach the money side of product development is to be realistic with how much you will need and where you are going to source it. Hopefully, this article has brought clarity to the different avenues from which your project’s funding may come from.
If you have any further questions about product development and funding options, get in touch. We’re happy to pass along any new information we may have!
