Every engineer who’s invented some new technology or is adept at coming up with innovative solutions believes that the hard part is over and the step to take that solution to market as an entrepreneur should be easy. And many engineers are in for a shock.
In reality, that seemingly short step from engineer to entrepreneur means significantly more risk.
In fact, a survey conducted by Duke and Harvard of over 500 technology companies found that only 37% of leaders had any background in engineering or computer science.
Engineers should definitely think twice before they assume that they have an advantage when it comes to being an entrepreneur, no matter how great the product they’ve come up with is.
The good news is that there are many great resources out there to help engineers make the transition to entrepreneurs. Krishna Uppuluuri’s book, ‘Engineer to Entrepreneur: The First Flight’ is a good start. The book identifies the main business perceptions most engineers have, along with providing a workbook approach to provide a quick start on various business lifecycle topics.
Here’s what to keep in mind if you are considering making the transition from engineering to entrepreneurship.
The old adage ‘if we built it, they will come’ tends to be a common misconception amongst engineers who are considering starting their own business to sell a product they developed.
In reality, simply building a solution alone won’t magically make it connect with customers, manage the competition, or communicate the offering to the industry. Today, we’re definitely in an era of information overload. Selling and marketing skills are absolutely crucial to ensure your product takes off, no matter how awesome it is.
Thinking that your product alone will act as a customer magnet is a dangerous mindset to have. So, before you make the leap from engineer to entrepreneur, it pays to develop some skills that you can use to put your product in front of the market, promote it, and connect with your target audience.
How do you do this?
Similar to the above, just because something is cool and new in the market doesn’t always mean that it’s going to do well. Sure, people love new innovations – but is there actually any demand for it? There’s no point spending a huge amount of time and money designing and creating a product, only for people to say ‘that’s cool, but I don’t need one’.
Before you invest your time, energy and finances into an idea, assess the commercial viability. In layman’s terms, make sure that other people are going to be as excited about it as you are.
This means:
You should be able to answer these two crucial questions:
You can use prototype testing, concept testing, market testing, and focus groups to find clear answers to these questions – but it can be complex, expensive, and time-consuming.
Conduct a product viability analysis yourself; start by asking these questions:
Once you’ve answered these questions, shift your focus to the tactical aspects of your product and the impact it will have on your business model. Consider:
Many engineers think that they need to ensure functionality is maximized before they can begin to focus on customers. But the reality is much further from the truth. In fact, there’s no way that you can engineer the functionality right until you start focusing on customers.
From a customer’s perspective, superfluous functionality is nothing short of a failure. Ship fast, make changes, and iterate should be every engineering entrepreneur’s motto today.
Customers should be involved in every part of your product’s development process. Allowing them access to prototypes and beta testing, for example, gives you the perfect opportunity to find out exactly what your target audience is looking for and what they think of your product.
Waiting right until you’ve ended development to showcase your product to customers can be a massive risk to take. Imagine if you put all that work in and not a single potential customer likes the product or thinks it’s worth buying. Involving your customers in the development process eliminates the risk of that situation occurring.
Some popular options for collaborating with customers during the design process include:
The difference between entrepreneurs and engineers is that while good entrepreneurs tend to see risk as a positive thing and embrace it as an opportunity, most good engineers can be quite cautious and risk-averse. In their respective careers, this may work well, but the truth is that continuing to be risk-averse when switching from engineering to entrepreneurship will not do you any favors.
The result of this mindset means that, unfortunately, many engineer-driven solutions tend to arrive too little, too late in the fast-paced market of today. In order to be successful with a startup of any kind, it’s important to manage risk rather than avoid it completely.
Some startup risks you’ll need to accept and manage include:
The transition from engineer to entrepreneur might not be as clear-cut as you think. But with the right preparation, it’s an excellent move for any engineer who’s developed a marketable product.
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