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How to take a digital product from idea to reality
So you want to start a business and you think you have the perfect product idea. Before you start investing time and money in developing your product, it's important to follow these steps.
1. Getting the concept right
So you have this idea that you think will make you rich or fix a problem in society. How do you take it from a concept in your mind to the hearts of your users?
The first thing you should do is to organise your thoughts and WRITE down your idea(s) in a structured way.
There are many frameworks out there that can help you structure your thoughts, but in this guide we'll teach you our personal favorite approach: the user-centric approach.
What is the vision/mission of your idea?
Write down in one sentence the vision your idea is trying to achieve in the next 3–5 years. A great vision is something that is succinct, objective and grand.
A vision needs to be succinct and generate a visual image because good products are SIMPLE. If you can't describe a vision in one sentence, how will you pitch it to cofounders, investors and your customers?
The vision needs to be objective. After every milestone you should be able to come back to your initial vision and very clearly state whether you’ve gotten closer to that objective.
Your vision needs to be GRAND or a problem you truly feel passionate about, because starting a business and launching a product is the toughest thing you will ever do, and at every turn there are 99 reasons to give up and only one that keeps you going: that you are doing something grand and something that you're deeply motivated by.
We want to stress to you that at the conception stage of your product, you shouldn't fall in love with any detailed solutions, designs or implementation. You need to fall in love with your vision and the problem that you’re trying to solve.
A bad example of a vision
“I want to create the best supermarket with free delivery for groceries for the Cleveland metro area.”
A great example of a vision
“I want to make grocery shopping easy and enjoyable for Americans”
Who are your users?
The next step is to write down your perfect user and everything you know about him or her. Try your hardest to empathize with your perfect user and write down his or her name, age, occupation, race, culture, relationship status, likes and interests, motivations, typical day and so on. Next write down the main pain point you are trying to solve for the user.
Jasmine, 35, a married mother of 2, working fulltime as a marketing professional from Denver. She is motivated by the wellbeing of her family and most of all by the wellbeing of her two young children Zac (5) and Jamie (8).
She is a professional marketer but it is a means to an end. Her day starts early at 6:30 where she wakes up, cleans up, makes breakfast for her kids and husband. She makes sure the kids wake up on time, remembers to pack their homework, clean, dress and eat. She hurries them in the car and she takes them to school before going to work herself. She spends her lunch break thinking about what to cook for dinner, what’s left in the fridge, how Zac did at the spelling bee and whether Jamie forgot to bring his hat.
She finishes work at 5:30, but it’s never enough time to buy groceries, get home and make a healthy meal for everyone. She tries to get Jack her husband to buy groceries but he’s busy and doesn’t know what ingredients are needed. She rushes to the closest supermarket near her work because the supermarket near her home is further. She quickly buys all the groceries that she scribbled on a piece of paper and rushes home on the subway. After getting home at 6:30pm, she and Jack wash, cut and cook together, but she realises they are out of garlic.
From writing down a hypothetical day of your user, you gather pain points. From this very basic passage we are able to learn. Every pain point you write down here is an opportunity for your business.
Jasmine is time starved
She wants her family to eat on time
She wants her family to eat healthy and fresh
She wants to know what is left in the fridge
She has to remember what she needs to buy
She has to find and park her car
She has to carry the heavy groceries with her on the train
As you learn more about your users through empathy, quantitative research and qualitative research you will have more and more pain points you want to solve.
Keep in mind that the current solutions to the goal already solve many pain points that aren’t easily discovered here without further research. For example, Jasmine obviously cares that the produce she buys is fresh, but that pain point is largely solved and not an opportunity.
2. Determining the TAM (Total Addressable Market)
The Total Addressable Market (TAM) is the total possible market for your product or solution. There are many ways to determine this, but we like using the Fermi approach to this question. This involves estimating the biggest potential group of users and how often they will use the product.
Define the question clearly. Given our goal we can define it as, “How much money do people spend on groceries in the USA per year?”
Write the formula. Total amount (USD) spent on groceries per year = Dollar amount of food consumed per person per day x population of USA x 365. This is obviously a very big number in our example, but if your vision isn't grand enough this is a great litmus test for you to go back and think bigger. This exercise is done to ensure you have a grand enough vision, and not as a way to forecast your revenue. Therefore ballpark estimates and assumptions are encouraged.
Assumptions and ballpark figure. In this example we have to make an assumption on the cost of food in dollar terms an average American consumes. We could estimate something like $2 for breakfast (juice, 2 eggs, a piece of toast, some butter), $6 for lunch (meat, veggies, oil, condiments, etc.) and $6 for dinner (as above). The other assumption we're making is that we're able to source the groceries at this rate (the wholesale rate in this case).There are more detailed ways to break this down by writing sub formulas that segment your users (i.e. age, class) if you're targeting a more niche set of users.The next thing for you to do is to work out your ballpark estimate and validate it. In the example we provided: $Total amount = $14 * 325 mm * 365 = $1,660,750 Million USD or $1.7 trillion dollar market.
3. Examine existing solutions
Write down all the different options that your target users use to achieve the goal that they have. You don’t need to write down all the brands that provide solutions, but aim to write down the different models of business and any alternative solutions to your user’s goal. Scribble down the biggest pain points that these solutions solve (or benefits they provide to the user), and make sure you append that to the list of pain points you think of as you go through your competition.
In our grocery shopping example, it could be something like this:
Options for grocery shopping
Supermarkets (Cost, fresh, large variety, healthy)
Home delivered produce (on time, expensive)
Local markets (fresh, healthy expensive)
Local delis
Butchers
Fruit stalls
Alternative solutions
Home delivered meals (UberEats)
Restaurants
4. Designing your ultimate product
First of all, there is never an ultimate product as users and their needs evolve over time and as new technologies arise. But that doesn’t mean we shouldn’t aspire to be the ultimate product for this time for our target group of users.
Start by choosing a medium for your product. Is it a brick and mortar deli, is it a website or app or a health and food magazine? Next list out all the features your product could have and tie those back to the pain points of your target users. In our example it could be something like:
Mobile app
Shopping list page that recommends items based on healthy recipes
Shopping cart so users can save items
Home delivery that is always on time and ensures fresh groceries
Tracking feature for each family member's requests or favorite recipes
Feature allowing recipe sharing between friends
Easy payments
Easy returns
Ability to link to smart fridge and recommend items
Ability to link to smart scale to track weight loss and diet goals
Once you’ve done this, it’s time to start mocking up what your product may look like and what it should be called. There are many tools out there to help you with your mock up. Our favorite is good old pen and paper, but if you're looking for a bit more detail you can check out apps like Balsamiq and InVision.
Naming your product
Your product’s name should be memorable and should try to convey the value proposition of the product. Here are some specific guidelines for naming your product:
The name should be unique in the market you are trying to address
The name should memorable
The name should be easy to spell
The name should not be culturally offensive or even insensitive
The name should be short and succinct or able to be abbreviated when not (i.e. Benz for Mercedes Benz)
The name’s equivalent domain name should be available for registration
The name and domain should not be competing for customers or traffic with an existing brand
The name resonates with your core target market
The name should be fairly short, and preferably 3 syllables or less (notable exceptions include Coca-Cola).
Make sure to buy and register the domain name of your product.
In our example above a decent name could be something like YouFresh, ShopFresh, EatFresh. For the rest of the article, let’s use the example of EatFresh. These examples tick most of the checklist above.
Logo
A great logo is simple and clearly visually represents the name and vision of the product. To create a logo, start by writing down some elements and words and emotions that describe your product. Next just grab a pen and scribble down some mockups of what you've written down. Make sure your mockups and elements are simple so people can remember them visually.
The same guidelines for naming a product also apply to creating a logo for a product. As you’ve come up with some mockups you’ve most probably learned more about your product vision. Unless you're a seasoned creative type you’ve probably realized that it's very difficult to create great visuals for your product. It's a good time now to brainstorm names and get a logo created. Freelancer.com has tens of thousands of active and highly skilled logo creators who can help you do this.
Now that you have product mockups, a name and a logo designed it’s time to scale down your grand visions into MVP (Minimum Viable Product) user stories. User stories are activities you want your user to complete using your product. This may seem like an easy thing to do but it’s actually one of the most difficult steps, because your business will very likely to be constrained on resources and, therefore, the features you can build to accommodate (unless you happen to have a very rich uncle).
There are several steps in determining MVP user stories:
Write down a few major categories of user stories
Write an exhaustive list of user stories for each category
Apply a framework to prioritise the categories and user stories
You might think you don’t need to be so rigorous and that you know exactly what features you need without even thinking about user stories, but unless you're a mind reader or the only target customer, it's an absolutely critical step that you CANNOT skip. To get help gather user stories, you can call on the help of a freelancer.
Many business founders who skip this step end up building a product that they love as opposed to a product that all target users love.
Here are a few examples for our hypothetical app:
EatFresh user story categories
Figuring out what I need to buy
Getting a wide selection of fresh groceries
As a user I want to be able to purchase milk, cheese, bread, etc.
Getting the groceries to me
As a user I want to receive groceries to my door within one hour of ordering
As a user I want to be able to order and pay beforehand and pick up the groceries in store
As a user I want to make sure the groceries are always delivered to the correct address
Once you have an exhaustive list of user stories we recommend you use the MoSCoW framework to scale it down to the MVP list of user stories. In other words, think through each of your user stories and label them as, “Must Have," “Should Have,” and “Could Have,” and do the same at the category level. Be ruthless and really scale down your product into the bare minimum.
Now that you have categorized lists of MVP user stories, it’s time to go back to your mockups and really flesh out the full designs for your MVP product. At this stage you’ve generally got a good idea of how you want the product to look, but product design is a complicated form of art.
Good product designers, be it UX designers, graphic designers, mobile app designers and so on, consider many different factors while creating designs that users love. The broad categories are:
After your designers gives you designs, don't rush into developing your product. Go out there and validate the designs. Load the designs into your phone, tablet or laptop and ask potential users to give you feedback. Go and perform some testing in the wild and ask users to perform simple to complex user stories on the designs.
There are many tools that can help you perform your research. Google Surveys can help you gather feedback on your designs and concepts. Usertesting.com is a platform that can help you validate your designs by connecting you to many users who will test your designs for a fee.
After you’ve done that make sure you prioritize them using a framework. At Freelancer product development we like to use R.I.C.E. Rank your individual features using the R.I.C.E. score so you get an inkling of what should get built first and how hard it is to build each feature.
Reach: How many of your potential customers would this feature reach?
Impact: What is the impact of this feature for your users or your primary objective?
Confidence: What is your confidence in your estimations for the other variables?
Ease: How easy is it to build this feature?
Once you give each of your features scores on R.I.C.E, you can choose to multiply or add the scores together. The critical part of the exercise is to prioritize the features of your MVP using an objective framework based on what the users want and not what you want. There are non-standard cases where the scores of a feature may be low due to ease and confidence, but it may be a deal breaker without that feature.
In our EatFresh example, we’ve compared two features in the following table. The first feature is a feature around creating and offering daily recipes. The second feature allows customers to pay for their grocery order. The logic is that we may estimate that only 50% of our customers would use our daily recipes feature, whereas 100% of our customers would need to pay.