As a young entrepreneur, I remember being fascinated by the story of Steve Jobs and Steve Wozniak, co-founders of Apple. According to legend, Wozniak built the first Apple computer in Jobs’ parents’ garage, and Jobs had the brilliant idea to sell it. But what came first, the product or the business?

This question has puzzled entrepreneurs and business leaders for centuries. Do you create a product and then build a business around it, or do you build a business and then create products to sell?

In this newsletter, we’ll explore insights, case studies, and expert opinions to answer this question.

Insights:

1. The Chicken and Egg Problem: It’s a classic dilemma. Do you create a product and then find customers, or do you identify customer needs and then create a product? The answer is not straightforward.

2. The Business Model Canvas: Alexander Osterwalder’s Business Model Canvas is a useful tool for designing and innovating business models. It suggests that a business model consists of nine building blocks, including customer segments, value propositions, and revenue streams.

3. The Lean Startup Methodology: Eric Ries’ Lean Startup methodology emphasizes the importance of rapid experimentation, customer feedback, and continuous iteration. It suggests that entrepreneurs should build a minimum viable product (MVP) and then test it with customers.

Case Studies:

1. Airbnb: Airbnb’s founders, Brian Chesky and Joe Gebbia, created a simple air mattress rental service in their San Francisco apartment. They built a website, took photos, and listed their service on Craigslist. Only after they had validated their idea with customers did they build a more robust business model.
2. Dropbox: Dropbox’s founder, Drew Houston, created a simple file-sharing service as a solution to his own problem of carrying a USB drive everywhere. He built a minimum viable product, tested it with friends, and only after validating his idea did he build a more robust business model.

Expert Opinions:

1. The product is the easy part. The hard part is creating a sustainable business model around it.” – Eric Ries, author of The Lean Startup
2. You don’t need a perfect product to start a business. You need a minimum viable product to test your assumptions.”* – Alexander Osterwalder, author of Business Model Generation

Conclusion:

So, what comes first, the product or the business? The answer is not straightforward. It’s a chicken-and-egg problem. However, by using tools like the Business Model Canvas, the Lean Startup methodology, and by validating your ideas with customers, you can increase your chances of success.

Remember, the product is just the starting point. The real challenge is creating a sustainable business model around it.

What’s your take on this question?

Do you think the product, or the business comes first?

Share your thoughts in the comments below!

Stay tuned for more insights, case studies, and expert opinions on entrepreneurship, innovation, and business strategy!

Share this newsletter with your network!

Let’s connect!

Best regards,

Ayo Emakhiomhe