Asked by ed
What should one research before creating a product?
o o o o
How much it will cost to compensate employees
How much money investors are willing to invest in the product
What is required to make the product
The number of products that will need to be produced
All Answers 1
Answered by
GPT-5 mini
AI
Short answer: All of those are important — but they fit into a broader set of research topics you should cover before building a product. Below is a compact checklist with what to research, why it matters, and how to get the numbers you listed.
1. Market & customers
- What to research: target customers, pain points, willingness to pay, market size (TAM/SAM/SOM), customer segments, and competitor offerings.
- Why: validates demand and sets realistic sales forecasts and pricing.
- How: surveys, interviews, pilot tests, competitor analysis, industry reports.
2. Product requirements & technical feasibility
- What to research: specifications, materials, components (BOM), production processes, required skills, prototyping needs, quality standards, regulatory or safety requirements.
- Why: determines design, supplier choices, lead times, and technical risks.
- How: prototypes, engineering estimates, supplier consultations, regulatory guidance.
3. Cost structure & unit economics
- What to research: cost to make one unit (materials, components, labor, packaging), overhead allocation, shipping, taxes, returns, warranty costs.
- Why: determines margins, pricing strategy, and profitability.
- How: get supplier/manufacturer quotes, time-and-motion for labor, create a cost-per-unit model.
- Useful formula: unit contribution = price − variable cost; break-even units = fixed costs / unit contribution.
4. Production volume & manufacturing planning
- What to research: expected production volumes, minimum order quantities (MOQ), capacity of partners or in-house lines, lead times, scalability.
- Why: affects per-unit cost, inventory needs, cash flow, and supplier selection.
- How: demand forecasting, pilot production runs, manufacturing quotes, discuss MOQs with suppliers.
5. Financial needs & team compensation
- What to research: total funding required (R&D, tooling, capex, marketing, operating expenses), payroll and benefits to compensate employees, cash runway.
- Why: ensures you can pay staff and suppliers while bringing the product to market.
- How: build a pro forma / cash-flow projection, salary benchmark for roles, include hiring timeline and associated costs.
6. Funding & investor fit
- What to research: how much investors typically invest in your stage/sector, valuation expectations, terms, and alternative funding sources (grants, loans, pre-sales, crowdfunding).
- Why: determines feasible growth plans and dilution, and whether external capital is needed.
- How: talk to investors/angels/VCs, research recent deals in your space, prepare a financial ask and use-of-funds.
7. Supply chain, logistics & legal
- What to research: reliable suppliers, lead time variability, import/export rules, tariffs, shipping costs, insurance, IP and regulatory compliance.
- Why: supply-chain issues can kill timelines and margins; legal issues can block launch.
- How: supplier audits, customs consultants, IP searches, legal counsel.
8. Go-to-market & distribution
- What to research: sales channels, pricing model, marketing channels, sales cycle, partnerships, customer support needs.
- Why: impacts required inventory, acquisition cost, and revenue timing.
- How: channel tests, cost-per-acquisition estimates, pilot sales.
9. Risks & contingency planning
- What to research: technical, market, financial, operational risks and mitigation strategies.
- Why: prepares you for setbacks and investor questions.
- How: risk register and scenario/sensitivity analyses.
Quick mapping to your four items
- “How much it will cost to compensate employees” — yes: calculate salaries, taxes, benefits, and hiring ramp in your cash-flow.
- “How much money investors are willing to invest” — yes: research investor appetite and prepare realistic asks and rounds.
- “What is required to make the product” — yes: full bill of materials, processes, tooling, skills, certifications.
- “The number of products that will need to be produced” — yes: forecast demand, MOQ, capacity; use that to size production and inventory.
Next steps (practical)
1. Draft a one-page product spec and raw BOM.
2. Build a simple spreadsheet: unit cost, fixed costs, price, break-even calculation, 12–24 month cash-flow.
3. Run customer interviews/pilot pre-orders to validate demand.
4. Get 3 supplier/manufacturer quotes and one prototype.
5. Talk to a few potential investors or advisors to test funding assumptions.
If you want, I can:
- Help create a starter cost spreadsheet template (unit cost, break-even, cash flow).
- Draft interview questions for customer validation.
- List the top 10 questions to ask manufacturers when getting quotes.
1. Market & customers
- What to research: target customers, pain points, willingness to pay, market size (TAM/SAM/SOM), customer segments, and competitor offerings.
- Why: validates demand and sets realistic sales forecasts and pricing.
- How: surveys, interviews, pilot tests, competitor analysis, industry reports.
2. Product requirements & technical feasibility
- What to research: specifications, materials, components (BOM), production processes, required skills, prototyping needs, quality standards, regulatory or safety requirements.
- Why: determines design, supplier choices, lead times, and technical risks.
- How: prototypes, engineering estimates, supplier consultations, regulatory guidance.
3. Cost structure & unit economics
- What to research: cost to make one unit (materials, components, labor, packaging), overhead allocation, shipping, taxes, returns, warranty costs.
- Why: determines margins, pricing strategy, and profitability.
- How: get supplier/manufacturer quotes, time-and-motion for labor, create a cost-per-unit model.
- Useful formula: unit contribution = price − variable cost; break-even units = fixed costs / unit contribution.
4. Production volume & manufacturing planning
- What to research: expected production volumes, minimum order quantities (MOQ), capacity of partners or in-house lines, lead times, scalability.
- Why: affects per-unit cost, inventory needs, cash flow, and supplier selection.
- How: demand forecasting, pilot production runs, manufacturing quotes, discuss MOQs with suppliers.
5. Financial needs & team compensation
- What to research: total funding required (R&D, tooling, capex, marketing, operating expenses), payroll and benefits to compensate employees, cash runway.
- Why: ensures you can pay staff and suppliers while bringing the product to market.
- How: build a pro forma / cash-flow projection, salary benchmark for roles, include hiring timeline and associated costs.
6. Funding & investor fit
- What to research: how much investors typically invest in your stage/sector, valuation expectations, terms, and alternative funding sources (grants, loans, pre-sales, crowdfunding).
- Why: determines feasible growth plans and dilution, and whether external capital is needed.
- How: talk to investors/angels/VCs, research recent deals in your space, prepare a financial ask and use-of-funds.
7. Supply chain, logistics & legal
- What to research: reliable suppliers, lead time variability, import/export rules, tariffs, shipping costs, insurance, IP and regulatory compliance.
- Why: supply-chain issues can kill timelines and margins; legal issues can block launch.
- How: supplier audits, customs consultants, IP searches, legal counsel.
8. Go-to-market & distribution
- What to research: sales channels, pricing model, marketing channels, sales cycle, partnerships, customer support needs.
- Why: impacts required inventory, acquisition cost, and revenue timing.
- How: channel tests, cost-per-acquisition estimates, pilot sales.
9. Risks & contingency planning
- What to research: technical, market, financial, operational risks and mitigation strategies.
- Why: prepares you for setbacks and investor questions.
- How: risk register and scenario/sensitivity analyses.
Quick mapping to your four items
- “How much it will cost to compensate employees” — yes: calculate salaries, taxes, benefits, and hiring ramp in your cash-flow.
- “How much money investors are willing to invest” — yes: research investor appetite and prepare realistic asks and rounds.
- “What is required to make the product” — yes: full bill of materials, processes, tooling, skills, certifications.
- “The number of products that will need to be produced” — yes: forecast demand, MOQ, capacity; use that to size production and inventory.
Next steps (practical)
1. Draft a one-page product spec and raw BOM.
2. Build a simple spreadsheet: unit cost, fixed costs, price, break-even calculation, 12–24 month cash-flow.
3. Run customer interviews/pilot pre-orders to validate demand.
4. Get 3 supplier/manufacturer quotes and one prototype.
5. Talk to a few potential investors or advisors to test funding assumptions.
If you want, I can:
- Help create a starter cost spreadsheet template (unit cost, break-even, cash flow).
- Draft interview questions for customer validation.
- List the top 10 questions to ask manufacturers when getting quotes.
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