Ways to Reduce Product Development Cost
Small companies do not have significant sales volumes to offset development cost. They must keep product development budgets reasonable, without sacrificing quality. However, they often have smaller and inefficient teams. They also have less than complete processes and long product life cycles.
What should a small company do? Here are the top 3 methods for keeping development cost low in a small company while increasing quality.
#1 - Reference Designs:
Starting with a reference design is like starting the race from the halfway point. Using parts of other designs means you have fewer hours to develop. You can see some of our reference designs here.
#2 - Use Experts:
Experts and specialists do not charge you to “learn.” They already know how to get the job done. Keep your team lean by hiring only for core skills and hiring experts for non-core skills. In a small company, you can not afford to have people “learn on your nickel.”
#3 - Use Proven Processes:
A lack of processes often leads to doing the wrong thing well. In a highly technical arena, it is not difficult for team members to each have their idea of what the product vision is. Following a mature stage-gate process will go a long way in avoiding having to do work all over again. This white paper is a great start: Keys to Successful Product Development.
Co-Founder @ Cogtix Solutions | Managing Director @ Levrez Technologies
9moThis sounds like a great approach to ensuring cost-effectiveness and quality in product development. Excited to learn more about how these strategies can benefit businesses!
This is great advice! As a startup founder, keeping product development costs in check is crucial for sustainable growth. I'm eager to learn more about streamlining processes and optimizing materials without compromising quality. It's all about finding that balance to ensure we deliver value to our customers while managing our resources efficiently. Looking forward to diving into the insights shared!
Exciting insights! Efficient product development is crucial for startups. Looking forward to learning more about optimizing processes and driving innovation while keeping costs low.