There’s a standing joke in the technology business that if engineers are abandoned to their own devices they’ll develop ideas which have great marketing potential for a market size of one. This 1 individual who enjoys the engineer’s thought is, of course, the engineer himself. The reason why this occurs is that most technology professionals such as engineers, software developers, and a few entrepreneurs tend to focus on the technology rather than on the Engineers get the majority of their ideas about new technology from chip manufacturers and other element supplies for their next great idea.
They tend to speak to and collect information from their providers because generally speaking this is the only sort of people they talk to out of the organization. The truth is suppliers like Texas Instruments, Microchip, Analog Devices, and many other Integrated circuits (IC) manufacturers encourage engineers to develop evaluation boards, development kits, and white papers in order the manufactures do not have to develop these tools themselves.
The IC manufacturer will often promote a contest to encourage many programmers to make development kits. The winner is often awarded an arrangement for a provider of the development kit to the manufacturer who’ll list it on their own website and catalog for resale.
This sort of agreement works well in the event that you win the contest but bad if you don’t. However, for small independent developers, searching for a part-time income that is a fairly low-risk opportunity but this version doesn’t translate well for bigger business. Engineers who wish to take into account a larger market risk falling into the snare of the 1 main market should they rely on providers for marketing direction.
A different mindset is required to be able to avoid this trap. Market research is the subject of study we will need to consider. Primary and secondary research can be done on the cheap or it can be done with a great deal of money based on market knowledge and the quantity and The figure below shows a scale of likely success, given the degree of dedication guaranteed from the target market. Getting a client to pre-pay or provide investment will guarantee success.
This is not always simple but very successful business people will make trades before creating or producing the technology; frequently with as little as a newspaper study. So it isn’t impossible to find a paying client before development. Doing this provides the programmer less financial risk and because the client will critic the development as it evolves the final result will satisfy the requirements of the customer.
Of course, there are quite a few other factors that will need to be considered include, cash flow, competitive strategy, production, quality, in addition to marketing and distribution channel development so as to grow the business beyond one client. But these areas of business become less risky once the growth and start-up costs are paid for.