Chapter 1: Laying the Groundwork

In the world of startups, one of the most distressing scenarios I encounter is when aspiring entrepreneurs confidently share their innovative ideas, only to reveal they are already funding a developer to bring those ideas to life. While I admire this proactive approach, there are numerous critical steps to undertake before allocating funds to freelancers or offshore teams.

Pause for a moment.

There are five essential actions to take prior to hiring a software developer.

Step 1: Develop Your Prototype

If you've already crafted a prototype, proceed to Step 2.

You might be aware of the concept of a minimum viable product (MVP). If not, it’s time to familiarize yourself. A common misunderstanding regarding an MVP is that it serves to validate whether your idea can be executed. In reality, an MVP demonstrates that an idea merits development, while a prototype illustrates that it is feasible.

Should you create the prototype on your own? Absolutely! You don’t need advanced coding skills at this stage. Prototyping is more about creatively piecing together various elements. Think of it as assembling a basic MVP, albeit with a lot of improvisation.

There are numerous platforms available that allow you to mimic technical functionalities using a hands-on approach. Tools such as WordPress, GSuite, Zapier, and Slack enable you to construct mockups of applications, databases, and APIs without writing a single line of code — you can essentially simulate the entire concept.

Your prototype should focus on one primary function that will validate the operational viability of your idea, allowing you to visualize the user experience in a documentable manner.

Should you release the prototype as a genuine product? Definitely not. However, you can share it with trusted individuals for feedback, which will aid in refining your MVP.

If your prototype is successful, you've completed Step 1. Four steps remain before it becomes the developer's responsibility.

Step 2: Secure Funding for Your MVP

It’s important to be precise in my wording regarding this step. An MVP holds no value if it lacks users. In fact, an MVP that isn’t utilized is merely an upgraded prototype.

Once you have people paying for your MVP, you can proceed to Step 3.

While you can utilize the same tools employed for your prototype, expect to invest time learning and experimenting with user interactions, automations, data processing, and crucially, executing transactions that generate revenue — the ultimate measure of your MVP's viability.

Consider using no-code platforms to simplify this process. I highly recommend Bubble, among other options that allow you to visually create a functional web app, if not the entire application. For instance, I successfully built the profitable Teaching Startup platform using Bubble to demonstrate the possibility of such a venture.

Now, who will pay for your product? A straightforward question, but a challenging one to answer. Identifying your target market is crucial during your MVP development.

Define the demographic most likely to benefit from your product. Once you have a clear profile of your ideal user, seek out individuals who match that description.

Then — and this may sound surprising — sell your MVP to them.

Do not give it away or let them trial it without a clear conversion path to paying customers.

If you can’t achieve this, your product isn’t yet an MVP; it's still a prototype.

Your sales pitch should at least cover:

• Why they need it
• What it does
• How to use it
• Who to contact if issues arise

Additionally, ensure you have a way to reach them and incentivize them to provide feedback. Their insights will guide you in shaping the actual product and identifying the market you should target.

It’s likely that the product suited for your market will differ significantly from your initial concept. This insight can save you considerable rework expenses.

Moreover, it’s always preferable to generate revenue before investing in expenses. I’m not suggesting your product must be self-sustaining immediately, but convincing users to spend money is one of the most challenging tasks. If you can accomplish this, your idea has merit.

You may make educated estimates about production costs and potential pricing. However, the only error you cannot afford is setting the price too low. Introductory offers are a tactic to attract customers, but pricing a $100 product at $1 won't yield valuable insights.

And that’s how Ponzi schemes originate.

Step 3: Establish Your Distribution Strategy

If you already have a mechanism to deliver your product to a wide audience, move on to Step 4.

Regardless of the quality of your idea or the effectiveness of your product, it’s irrelevant if it’s inaccessible.

In the previous step, I mentioned that sales methods for the MVP weren't critical. Now, it’s time to focus on that aspect.

If you’re developing a mobile application, you’ll need to comply with app store regulations. Any traditional or web-based software will operate through its own website or an aggregator—like Steam for games. If your product involves hardware, avoid platforms like Amazon during the MVP phase to prevent disqualification; opt for Shopify or similar.

This mechanism won’t automatically propel your product into the market. However, you don’t require a massive audience for your MVP. What’s crucial is the ability to monitor usage through these channels that aren’t directly managed by you. You need to understand who your users are, how they discovered your product, and their reasons for engaging with it.

This data will provide insights on product-market fit and highlight how to boost sales with less direct effort — the concept of a growth flywheel that many startup enthusiasts strive to create.

Step 4: Foster Customer Retention

If you’re experiencing repeat customers, proceed to Step 5.

Ideally, you want to encourage customers to return and spend more, whether through upgraded services, professional offerings, or in-app purchases. It is generally easier and less costly to sell to existing customers than to attract new ones.

However, if your product is subpar, customers may not return. Regardless of the initial value you provide, customer expectations will evolve, necessitating a professionally developed product.

Taking that leap of faith may be required.

Fortunately, it’s easier to make informed decisions with data. By now, you should have gathered enough information about your product and market to determine where recurring revenue can be generated.

Step 5: Analyze the Numbers

Once you have repeat customers, you can calculate a more precise lifetime value (LTV). You should also have insights into the costs associated with acquiring each customer (CAC). The difference between LTV and CAC represents your profit per customer.

Additionally, you should estimate how many customers you can potentially reach. Multiply this by your anticipated profit.

This figure represents the maximum budget you can allocate to develop the final product. However, it’s important to note that "maximum" doesn’t imply charity. You need to account for all expenses related to your time, effort, and growth.

Only after these calculations should you hire a developer to create the polished version of your product, equipped with your prototype and MVP. Having these elements ready will significantly reduce both time and costs.

With a professionally developed product launched, you can collaborate with the developer to create a prototype and MVP for the next set of features, repeating all five steps throughout the process.

At this stage, you’ve created a sustainable cycle that will not only enable you to flesh out your innovative idea but also empower you to keep evolving until you discover the next big idea for another product or company, initiating the process anew.

Here’s a video that expands on my last article with additional insights.

How Startups Get the Growth Flywheel Spinning

If you found this article to be honest, insightful, or actionable, consider joining my email list at joeprocopio.com. I’ll send you brief updates whenever I publish on platforms like Inc., Built In, Medium, or elsewhere.

For more practical advice tailored for entrepreneurs, innovators, and leaders, consider becoming a member at Teaching Startup, my initiative designed to make such mentorship more accessible.

Additionally, here's another helpful video for aspiring developers:

How to ACTUALLY Get a Software Development Job