When you are looking for investors to fund the manufacturing of a new product, it’s a good idea to have a prototype ready. A prototype by definition is a preliminary model or early sample of a product. It can be used to test a particular concept to make sure it can be turned into reality or can serve as the first sample of something that will be copied once funding is obtained.
Investors like prototypes because it brings a concept to life and proves that the concept is doable. It serves as proof that the business idea can be turned into a practical product that can be sold to customers. A prototype also proves that the entrepreneur or business has fully developed a concept and that the investors are not being asked to fund a pie-in-the-sky
A prototype should be market tested to prove that the product fulfills a customer need. That is like gold to a business and a business plan. Presenting a product that has been tried and accepted by potential customers greatly reduces the level of risk associated with a startup operation. However, small startups should not make the mistake of only testing the product on family and friends and need to introduce the prototype to the real target market. The business plan can include a report on the market testing to accompany the prototype itself. By validating a prototype, the business has tangible proof that the product can be manufactured, the materials are available, and the product design is workable.
Given the competition for investors, developing a prototype can give a business a competitive edge. Prototypes don’t just apply to manufactured products either. Startup software companies and websites develop prototypes to attract investors too. The key is to develop the product to the stage where the investors can easily see its potential success in the marketplace.
More detailed information and useful advice can be found at www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.