Starting off as an agency founder comes with its fair share of challenges. The temptation to rush into building your first product is strong, especially when there’s a promising idea on the table. Yet, transitioning from a service-oriented mindset to a product focus requires proper preparation. Based on my experience bootstrapping startups in the Netherlands, this shift demands foresight, patience, and a deep understanding of the market.
The Case for Waiting: Why the Right Timing Matters
Many agency founders feel a strong urge to build their first product as soon as they spot a problem. This eagerness is commendable, but it can lead to premature decisions. I’ve seen entrepreneurs invest their resources in products they think will sell without properly validating demand. According to research highlighted by "Minimum Viable Product Guide for Founders," almost 85% of new products fail due to poor market segmentation.
This statistic speaks volumes. Before rushing into development, agency founders should take the time to map out the pain points their clients face and conduct exhaustive interviews. If you're interested in structured methods for validating ideas, platforms like Google’s Effective Founders Project provide excellent benchmarks for cofounders anticipating disagreements during the planning phase.
Five Things to Know Before Building: A Practical Guide
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Prioritize Market Validation
The foundation of any successful product lies in understanding the target audience’s needs. Tools like Edraw.AI’s Canvas Creator can help you break down your findings into clear, actionable product assumptions. Start by identifying the specific problem, the type of client it appeals to, and how current solutions are failing them. -
Embrace a Generalist Approach
Agencies often thrive on offering tailored services. Yet, scaling this customization into a product setting can stall growth. For instance, Andres Max’s advice in "Building Your First Product Team" emphasizes creating modules that clients can tweak themselves instead of relying on bespoke code. Learn from fellow founders who’ve fallen into this trap and focus on developing templates that address broad needs. -
Set Aside Ego, Focus on Feedback
Early-stage founders sometimes get overly attached to their initial vision. I recommend looking to resources like Canvanizer AI. It not only lets you draft ideas but pings user feedback, enabling iterative improvements. Early testers are not just buyers, they’re contributors to your success. -
Build a Lean Team
Transitioning into product requires clear role definitions. Hiring too early stresses your budget and waters down collaboration. I followed smaller-team principles even as CADChain expanded internationally. As pointed out in Max’s product team guide, small teams typically outperform larger groups, provided each person knows their contribution. -
Follow a “Minimum-Features” Rule
While “Minimum Viable Product” has become fashionable to the extent it’s misunderstood, products still need to function. Avoid below-average, rushed iterations. Resources like Net Solutions’ Guide help outline what to prioritize, such as reliable workflows and naturally flexible UX.
Top Mistakes to Avoid
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Over-Customization During Development
Agencies often fall into the trap of building too many unique features upfront. Large enterprises like PlayPal have suffered by catering repeatedly to charming isolated demands. Focusing on scalability avoids this pitfall. -
Neglecting Financial Goals
Expenses accumulate fast during product iteration processes. It's foolish to invest blindly without budgeting tools or platforms, such as my non-profit incubator experience aiding female entrepreneurs. Start tight. Build smarter. -
Skipping Network Effect Strategy
Interactive community engagement powers long-term revenue. My startup gains traction, leveraging expansion partnerships, early incubator demos, and regular online presence updates. Founders ignoring relationships risk stalling customer acquisition.
Lessons Learned for Women Entrepreneurs in Europe
Female founders in Europe face nuanced pressure compared to startup cultures in Silicon Valley. Networks may be smaller, and funding options sometimes hinge on fewer supportive incubator resources. This gap inspired me to bootstrap incubators primarily for women like Fe/male Switch.
Lessons to carry forward:
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Assert Your Value Publicly
Founders consistently interacting with thought influencers through webinars seldom regret outcomes. EU networks often appreciate collaborative open-source spirit-based ideas over stealth-style approaches. -
Decouple Gender Bias Honestly
Women entrepreneurs deserve equitable respect absent tokenizing biases. Registering for regional hubs requires patience yet empowers financially sound early drafts building longer-term partnerships.
If embracing disciplined neutral marketing treks increases equity, society’s demand circles thrive more sustainably.
A Useful Conclusion
I’m no stranger to pivoting business models, combining freelance agency routes into sustainable templates compatible commercially. "Start lean, scale modularly" remains actionable advice against mismanaging unscoped online analytics.
Let each draft product iterate precise problems fully neither oversimplified under-rushed oversights sustain consistent value minimally-dimensional businesses skeptics.
FAQ
1. Why is timing important when transitioning from an agency to building a product?
Eagerly building a product without validating market demand can lead to premature decisions and wasted resources. Research shows that 85% of new products fail due to poor market segmentation. Learn more about Net Solutions’ Guide
2. How can agency founders prioritize market validation?
Agency founders should identify client pain points and use tools like Edraw.AI’s Canvas Creator to break findings into actionable insights. Explore Edraw.AI's Canvas Creator
3. What approach should founders take to avoid customization traps?
Founders should focus on scalable templates rather than bespoke solutions, as highlighted in Andres Max’s advice on developing modular product features. Learn more about Building Your First Product Team
4. How can founders use feedback effectively during product development?
Platforms like Canvanizer AI enable iterative improvements through user feedback and idea drafting. Discover Canvanizer AI
5. Why is a lean team beneficial in transitions to product development?
Smaller teams encourage better collaboration and budget management, ensuring each member has a clear role in product success. Andres Max’s guide provides insights on lean team principles. Check out Building Your First Product Team
6. How do agency founders ensure their product’s minimum viable features are effective?
It’s crucial to avoid rushed iterations of MVPs. Reliable workflows and a flexible UX should be prioritized. Explore Net Solutions’ Guide
7. What are common mistakes agency founders should avoid when pivoting?
Over-customizing during development, neglecting financial planning, and ignoring strategies for customer acquisition through network effects can hinder growth. Learn more about Avoiding Customization Errors in Product Development
8. How can founders validate ideas during the planning phase?
Using structured methods like Google’s Effective Founders Project can help cofounders discuss disagreements and validate ideas systematically. Explore Google’s Effective Founders Project
9. What unique challenges do women entrepreneurs face in Europe?
Female founders often navigate limited networks and funding options compared to Silicon Valley, motivating the creation of inclusive incubators such as Fe/male Switch. Discover Fe/male Switch
10. How can founders assert their value in the market?
Engaging with industry influencers via webinars and maintaining open-source collaboration can enhance public perception and foster equity in the European startup scene. Explore Building Public Value in Startups
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
