The Pros and Cons of Presenting Investors with a Prototype
Developing a #prototype is largely dependent on the type of business you have and the needs of the business. Some business insiders will say that a prototype can be the tool that seals the deal while other say developing a prototype may work against you.
Presenting a prototype can be very revealing it allows the investors to “look behind the curtain” to see what’s truly fueling the team. The following pros demonstrate just how the #investors can catch a glimpse of the team’s work ethic and passion.
A prototype breathes life into your vision. It gives investors proof of the concept. They now have the opportunity to immerse themselves into the environment that you are trying to create. It gives them the chance to explore and interact with the product and walk away with the experience that you would like for them to have. They also leave pondering all the possibilities that can occur with your product.
The prototype shows that you’ve made some traction. The product is beyond flushing out an idea. Instead, you and your team have worked together to communicate an idea and constructed a iteration of the product depicting the results of your conversations. The team effort shows how you would launch into the market. You have indicated that you are further along in the developmental process and can work as a team.
A prototype shows that you can deliver results with limited resources. Developing an iteration of the product without the funds demonstrates the expertise of the team and its credibility. It shows the analytical skills of the team and how the members thought about the problem, and it highlights the value of each team members’ skill set and knowledge. In addition, creativity helps imply what can be produced from the team in the future.
A prototype takes time. Yes, numerous failures that result in several iterations of the product allow you to learn from your mistakes. However, at the end of the day, depending on how your time is managed, time is still lost, and the momentum to get the product to market has slowed.
The cost is on you. Numerous failed attempts and several iterations can become expensive. It’s important not to underestimate the costs of developing the prototype. Instead, consider the cost to construct the product, its components, and the product’s design.
A prototype can expose flaws. The prototype can provide an experience and a chance to explore, but while it presents possibilities it can also reveal some challenges that may arise in the future that you and your team may have not considered. Also, if not well tested, it can reveal usability flaws or create confusion.
While the choice of whether or not to have a prototype is largely dependent on the needs of the company, prototypes can bring you closer to the functionality of a product. Despite having some disadvantages many of the issues that arise can be addressed when your activities are well planned out and the prototype is tested.
Share your thoughts. Do you think prototypes are an advantage or a disadvantage when presenting to investors?
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