🧂 3 product pitfalls for business founders

Hey there. Happy Saturday! Today, I want to share some thoughts on building products as business founders.

Most startup founders building software companies come from one of two backgrounds: tech or business. Tech founders typically have experience working at other tech companies, so they understand what it takes to design, develop, and launch a product.

On the other hand, business founders excel at solving distribution and marketing challenges. However, when it comes to product creation, if they lack a product or tech co-founder, they may encounter significant challenges. Here are three common pitfalls business founders face:

1. Overplanning for the "Perfect" Product

Without a product or engineering co-founder, business founders often turn to development shops to build their product. In an effort to maximize cost efficiency, they might aim to complete everything in one big batch, striving to create the "perfect" product for a major launch.

The problem with this approach is that what seems "perfect" to the founder might not resonate with users. Launching a product without user feedback is risky because perfection is subjective—especially when it's untested.

In reality, product development is never a one-time event. It requires relentless iterations and experimentation to refine and improve the product over time. To avoid this pitfall, business founders should either bring on a CTO or establish a long-term relationship with a development partner who can iterate and evolve the product based on real user feedback.

2. Disconnect Between Business/User Processes and the Actual Product

I've seen SaaS business founders build products that don’t align with how their teams close deals. In some cases, the team is manually working through processes that the product was supposed to streamline. The software is a pain to use, even in its current state, making it hard to imagine it being effective for a broader launch.

It's fine to do unscalable things in the beginning, and it's okay not to automate everything immediately. But if your product isn't helping your team with their current tasks, how can it be expected to handle future use cases?

The best minimum viable product (MVP) always addresses a critical user need, no matter how small. It must be highly usable for that particular task, even if other processes remain manual. When planning for the "perfect" product, there's a risk of creating a disconnect between the current user experience and the envisioned future product. This is why product development should be incremental, rather than attempting a grand launch all at once.

3. Slow Feedback and Iteration Cycles

When there's a disconnect between the current business processes and the actual product, the product or engineering team may struggle to make meaningful improvements. The issues aren’t specific enough to address, and everyone assumes they'll be resolved "in the future" when the "perfect" product is finished.

This mindset disrupts the feedback and iteration loops, which are crucial for product development. Without timely feedback, the product stagnates, and the disconnect between the team’s needs and the product’s capabilities widens.

To avoid this, founders should prioritize quick feedback loops and continuous iterations. This way, the product evolves alongside user needs, rather than aiming for a mythical "perfect" version that may never truly meet expectations.

There are 5 ways to avoid these pitfalls.

1. Start Small and Iterate:

• Launch an MVP: Focus on a minimum viable product that solves a core problem for your users. Get it into their hands quickly and gather feedback.

• Prioritize Features: Break down your product roadmap into smaller, manageable features that can be developed, tested, and iterated upon in short cycles.

2. Engage with Users Regularly:

• Conduct User Testing: Set up regular user testing sessions to observe how real users interact with your product. Use these insights to guide product improvements.

• Create Feedback Loops: Implement easy ways for users and your internal team to provide feedback. Regularly review this feedback and incorporate it into your development process.

3. Align Product with Business Processes:

• Map Out Processes: Ensure your product aligns with your business processes by mapping out how your team currently works and how the product should support these workflows.

• Involve Your Team: Regularly involve your sales, marketing, and customer service teams in product discussions to ensure the product evolves in a way that supports their needs.

4. Establish a Long-Term Tech Partnership:

• Hire or Partner with a CTO: If you don’t have a tech co-founder, consider hiring a CTO or establishing a long-term relationship with a development partner who can take ownership of the product’s evolution.

• Invest in Continuous Development: Rather than completing all development in one go, budget for ongoing development and iterations. This ensures your product can evolve with user needs and market changes.

5. Maintain Flexibility:

• Be Ready to Pivot: Stay open to pivoting your product based on user feedback and market demands. Flexibility is key to long-term success.

• Avoid Perfectionism: Remember that "perfect" is the enemy of "good." Focus on making continuous improvements rather than striving for an unattainable perfect product.

By following these steps, business founders can build a product that not only meets the needs of their users but also evolves with the market, increasing their chances of long-term success.

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