Continue to Innovate Your Products, or Die a Slow Death Make additional investments in your product and companyto prevent a slow death of your business.

By George Deeb

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock.com

Your core products or services are your lifeblood. They are what attract customers, drive revenues and enable a company to thrive. And, the better your products are, the more customers want it, the faster you grow and the further you distance yourself from your competitors. But, a common mistake I see with many entrepreneurs is a mindset that once the product is built, they can change their focus to other areas of the business, like sales or marketing. That mindset is their first flawed step right towards their grave.

Competition never sleeps

Just because you may have a competitive advantage in the market today, does not mean you will keep a competitive advantage in the future. Competition is an entirely fluid ecosystem. Your existing competitors are always watching your moves, and the smart ones will be quick to follow and exceed your efforts. And, new startups are popping up all the time. If you lift your foot off the accelerator for one moment, you are providing your racing competitors the opportunity to drive right buy you.

Related: 4 Steps to Innovation Every Leader Needs to Follow

Customers always demand more

Your customers are looking for you to help them innovate over time. Yes, they may love your product today, but that product may become obsolete over time, and they are expecting their best vendors to step up their game with new features and functionality over time. The minute you sit back and rest on your laurels of past success, is the same minute you should start to feel the noose tightening around your neck.

Build a three year product roadmap

To solve this problem, you need to have a continually evolving and developing product roadmap. Lay out your product vision for the long term, and tackle one major product upgrade per year (e.g., Version 1.0 evolves to Version 2.0 after a year). That makes it much harder for your competitors to chase a moving target, and will establish yourself as a trusted thought leader and innovator with your customers looking to take their game to the next level.

Related: Make Innovation Systematic and Never Again Ask 'Why Didn't We Think of That?'

Gather ideas from all stakeholders

In order to build an effective product roadmap, you need to gather inputs from all places. You need to continually keep an eye on new innovations of your competitors. You need to be in constant contact with your customers, asking them for suggested improvements they would like to see from your business. And, you need to listen to your own product team, for their own innovation ideas. So, gather inputs from all three channels, prioritize them based on which ones will have biggest positive economic impact on your business, and stage them into your three your product plan over time.

Invest over time or pay the price

I had a Red Rocket client who was feeling pretty good. Their business was spitting out healthy profits for several years in a row and didn't really feel the need to materially upgrade their products. The business was paying dividends out to the shareholders, and all was good. Until they woke up one day and realized several new competitors had launched with cheaper, faster products and their customers were complaining that the company had gone stale and was overcharging them for what they were selling. They started losing clients, were forced to lower their prices (which materially impact margins and profitability) and had to start paying refunds for the product that was breaking more than ever. Needless to say, they were not happy to learn they were staring at a multi-million dollar project to get their products back into a leadership position in the industry -- an unaffordable amount hitting all in one year, that should have been slowly invested over time.

Related: The 7 Steps of Effective Product Development

The point here is, innovate or eventually die. It won't be a fast death, it will be a long drawn-out death, and you most likely won't even see it coming, until it is way too late or too expensive to fix. Emulate the innovative spirit of Steve Jobs during his tenure at Apple, and all will be good. And, if you find yourself having to make a choice between investing in your product or investing in other areas of your business (like sales and marketing), it is most likely time to consider raising capital to afford both. Because, as I have written about in the past, your proof-of-concept (driven by sales and marketing) is just as important as your product, and you need to invest in both.

George Deeb

Entrepreneur Leadership Network® VIP

Managing Partner at Red Rocket Ventures

George Deeb is the managing partner at Red Rocket Ventures, a consulting firm helping early-stage businesses with their growth strategies, marketing and financing needs. He is the author of three books including 101 Startup Lessons -- An Entrepreneur's Handbook.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Living

The CEO of Catholic Prayer and Meditation App Hallow Says Founders Need to Be Part of Something Bigger Than Themselves

On this episode of "The CEO Series," learn about the soulful journey of Hallow's CEO and founder Alex Jones.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Thought Leaders

10 Simple, Productive Activities You Can Do When You Aren't Motivated to Work

Quick note: This article is birthed out of the urge to do something productive when I am not in a working mood. It can also inspire you on simple yet productive things to do when you're not motivated to work.

Business Solutions

Get More Done with ChatGPT for Just $20

This ChatGPT course can help you streamline your business.

Growing a Business

Lifetime Access to Business Advice with This AI-Powered Service is Just $29.99

With Consultio Pro, you'll find expertise on topics like data analysis, financial analysis, innovation management, and so much more.