The “time to market” or time to get into your market is a very important concept that affects startups. It has to do with the time it takes from product conception until the first sales are achieved.
Many startup entrepreneurs expect to sell in the first few days, but it usually will take months, in some cases many months, until the first sales are achieved. The reason is that many startups are created without having a product ready for sale. They are created just to finish the products and to sell them. When you launch a new product or service it requires time to make it known to customers and sell it.
Regarding the metaphor of the tub, payments arrive just as we leave the notary with the company’s articles of association. Many bills are charged to the account of the company from the very beginning: staff salaries, rent, loans, invoices, etc. If we don’t consider realistically the fact that we will need time to start selling, we will be lost. Moreover, sales initially grow slowly, especially when the product is innovative and nobody knows about it.
The “time to market” concept is important in every startup, but is essential in technology-based companies (TBC). These startups are characterized by exploiting products or services developed from research activity. So your products or services are very new, with a kind of technological complexity, so their placing on the market is not immediate. It’s hard for clients to trust these companies and what they offer.
Entrepreneurs should try to shorten the “time to market”. It is strongly recommended not to wait until having a completely finished product to sell it. An agile startup seeks to develop a prototype of a product or service with the basic features and try to sell it to some customers. This will allow him to test and improve the product and this will also generate money to continue with the activity of the company. I will discuss more about agile startups in another post.
In any case when estimating the financial needs, it is important to think about how long our startup will require to start selling, otherwise it is probable that you will run out of money sooner than you expected.
Formulation of the pill:
– 1 Dose of realism, to predict when selling succeeds.
– 1 Dose of simplicity, to develop a marketable prototype and shorten the time to market.
– 1 Dose of agility, to try to sell as soon as possible