How to Build a Product that Scales into a Company
Building a Product that Scales into a Company
In this discussion, we will focus on the initial steps of building a product and how to strategically think
about go-to-market and pricing to turn a product into a successful company, rather than just focusing on
the product itself. The aim is to discuss the concept of "the company gap" and how to design products
from the beginning to span that gap.
The Company Gap
The company gap refers to the critical phase of product development where a product needs to be
moved beyond the initial stage of successful sales into a large-scale business. To achieve this, designing
for product go-to-market fit is essential. Products can be designed to make them easier to sell, and a
business model can be developed to scale selling and pricing to turn the product into a successful
company.
The challenge is to balance designing for product success with designing for a minimum viable customer
segment. The ultimate goal is to cross the gap to see the next step of funding.
An Example of Failing to Cross the Company Gap
A mobile payments company called Padient serves as an example of a company that didn't get across the
company gap. Despite offering a great product, they failed to move beyond initial successful sales and
never grew into a large company. They were eventually acquired by PayPal for their core technology,
with limited success.
Creating Interactive and Marketable Products
Getting over the company gap is challenging and requires more than just a great product. YouTube is a
great example of a business that successfully crossed the gap through their business model and pricing
strategies. Touch screens were the significant innovation introduced by the iPhone, and the App Store's
introduction was the key to its successful marketing.
Innovation in product creation is critical, but it is also essential to focus on go-to-market strategies and
pricing to create marketable and interactive products that can scale into a successful company.
Building a Product that Scales into a Company
In this discussion, we will focus on the initial steps of building a product and how to strategically think
about go-to-market and pricing to turn a product into a successful company, rather than just focusing on
the product itself. The aim is to discuss the concept of "the company gap" and how to design products
from the beginning to span that gap.
The Company Gap
The company gap refers to the critical phase of product development where a product needs to be
moved beyond the initial stage of successful sales into a large-scale business. To achieve this, designing
for product go-to-market fit is essential. Products can be designed to make them easier to sell, and a
business model can be developed to scale selling and pricing to turn the product into a successful
company.
The challenge is to balance designing for product success with designing for a minimum viable customer
segment. The ultimate goal is to cross the gap to see the next step of funding.
An Example of Failing to Cross the Company Gap
A mobile payments company called Padient serves as an example of a company that didn't get across the
company gap. Despite offering a great product, they failed to move beyond initial successful sales and
never grew into a large company. They were eventually acquired by PayPal for their core technology,
with limited success.
Creating Interactive and Marketable Products
Getting over the company gap is challenging and requires more than just a great product. YouTube is a
great example of a business that successfully crossed the gap through their business model and pricing
strategies. Touch screens were the significant innovation introduced by the iPhone, and the App Store's
introduction was the key to its successful marketing.
Innovation in product creation is critical, but it is also essential to focus on go-to-market strategies and
pricing to create marketable and interactive products that can scale into a successful company.
