Six Things You Should Do Before Building Your Product

Products, services, delivery-, wholesale- or resale-businesses, software as a service, subscription based models — all business models have one thing in common: they are about a market that demands something, and this market consists of people. Which means whatever you are offering, to make it a success it needs to be a good fit with what people want and what they are expecting. More than simply covering you customer’s basic needs, it needs to be fulfilling and, at best, exceeding their hopes.

The power and disadvantages of opinions

Opinions are important, they help us to navigate through life. Especially when you have a vision. Your opinion drives change, it can disrupt markets and motivate people. These opinions are valid and necessary, but they can stand in the way of learning and improving.

For an innovator it is easy to become tangled up in your own bias. It is human nature. Especially startups are prone to get carried away in their own bubble of enthusiasm. History is full of failed companies that didn’t see coming what killed them. Guided by opinions, they fearlessly ignored all indicators telling them about the reality until it was too late. Whenever a business has failed in an economy, it had always to do with an opinion. Investors, stakeholders, founders and CEO’s all have opinions and they all made decisions based on what they felt was right.

Opinions were the compasses that steered ships into safe harbours or hidden icebergs. Still, having a feeling you are doing the right thing can be terribly misguided, if you lack the necessary information to make a good decision. How do you break out of this bubble?

What you need are better informed decisions. Here are a few points which will help you making improved decisions:

1. Don’t start with an idea

You have heard it before: “Anyone can have an idea.” Right — but does it not depend on how you execute it? Or the team and a great masterplan for planned features? In truth, there is more to this: A good idea proves to be a great one once people start using your product or service. Which is a long way coming.

Begin with something bigger than the idea. Begin with a concept. It is not a plan of what to do when, or which feature to build first, but a framework of an idea. A concept includes answers to important questions. It is not all carved in stone and it should certainly not be rigid, but it should represent your vision. And this vision should capture things like a core market and room for expansion, a core audience and a reason to buy and a reason to use your product — again and again.

Only if your customers are building a lasting relationship with your product or service, they want to come back. They don’t disappear after an initial sale.

How do you know if people want to use your product, before you even have a product out there?

2. Ask honestly for whom are your making it

The first and most important question you need to answer is for whom you are building your product or service. Maybe you discovered a missing element in a market ripe for disruption. Or you had an idea that perfectly fills a niche in a crowded market. In either case (and every other case), you need to carefully consider who will use your product. Inevitably this leads to the question of who these people are and what motivates their own decision patterns.

Customers are not just consumers, they are people like you and me. People with their own circumstances in life, their context and social environment that surrounds them. These people have a value system based on trust and good experiences. They are looking for friends, in people as well as in products. So you should ask yourself: is my product, my service, a really good friend of the people it is for? Or is it just about making money?

3. Work on overcoming your own bias

What are those people thinking? What is going on in their heads? What are they hoping for? Sit together with exemplary people who could be your future customers (not your sister or boyfriend). Let them use a competing product or service and watch them doing it. Talk to them, ask them about their experience.

Analyse your competitor’s products for strengths and weaknesses. Figure out how these weaknesses or strengths correspond with people’s behaviour. Put them on a linear customer journey map. You are finding the reasons why people like or don’t like using these products or services.

Try to gather as much information as possible, but constantly sift through it and search for patterns and clusters of indicators for what’s going on in people’s heads.

You arrived at your opinion about a subject for a reason. It didn’t come out of nowhere. So you formed a hypothesis about a situation or need and now you need to confirm it is true . Find and collect evidence that proves this potential. The tools you have are the Internet, social networks, survey forms with incentives, interviews and user journeys in person — basically everything that helps you finding genuine answers.

Don’t just ask people what they think of your idea. Even more crucial: Don’t ask people what they would want. This would force people to think in abstract terms of an innovator and disruptor. To have a vision is your job, not theirs. Ask people what they are missing instead. Ask them how they feel using something they already know. Ask them about what they could change, if anything, to make something better. Ask them which qualities they are looking for in a product or service related to what you are about to build.

It is a lot of work, but you don’t have to do it all yourself:

4. Hire a product specialist (UX) together with developers

First, let’s get something out of the way: UX is not an afterthought, a process you apply after you built your product. That would be the worst of all outcome, because it means you are making experience design decisions without having any information to base them on. You would build a product based on guessing instead of knowing.

To be fair: UX is not a straight forward, fully outlined and predefined process. There are many models floating around of what UX should encompass. In its best form, UX will help you define and building the product. UX does not begin by testing something you already built, it starts with your concept and a number of ideas you want to have confirmed.

The hypothesis and validation of hypothesis is the most important toolset you have. A good UX consultant or product designer should begin by looking at your concept, at potential functions, and they should search for evidence in the market that these features are expected status quo or hold room for improvement. They should be looking at competitors, at user behaviour patterns, also at established paths, to figure out what is going on and why people are doing what they are doing. Once you find what drives people to do something, you have a better chance of redefining it as a well implemented feature.

You need someone with Design Thinking and UX experience aboard to help you plan your product features. You should regard them as developers and let them be part of your team that will define the product. Bringing in a UX person from the start will be guiding your team to find the right questions for the answers you are looking for, to better evaluate the importance of planned features, before investing time in building them.

5. Build small, then test, expand to larger territory, iterate and repeat the process

Once you have a set hypotheses you want to check out, start building the smallest possible array of something that does just what it needs to do. This is not a full product and it should not be perceived as such. It should consist only of elements necessary to let a user go through a task to achieve what they want to do.

To test a hypothesis, you can use a deck of cards. Or it can be a row of sticky notes with steps on a white board. It can be set of actions in a form with radio buttons or check boxes. It can be an interactive set of wireframes. The important part here is that you are testing flow, not a static image. What it should not be is a high-res user interface. Anything that helps you tell the story to guide a user through the journey of accomplishing a task is good and helpful. So if you need the colour red to indicate a state, use red. But if you don’t need red, don’t use it.

From there you can evolve the results into your minimal viable product — a term that has been stretched broad and thin to justify the presumed necessity of fully built products that only lack nice-to-have features. It shouldn’t be the most minimal product you get away with. Think of it as the combined core features, determined in relevance by the reasons you found, why people would use your product in the first place.

For an example, if you are building a flight booking app and you found that one thing that people really want and no one is delivering it, build this feature first and have people using it, then move to build everything around it.

6. Be ready to accept extreme changes

Here comes another potential pitfall: It is very easy to slip back into your own bias mode, thinking what you want, or what you think is best, is actually best for the product. It is so easy, because you are smart and you have already learned quite a bit about your product and its market. What you can’t know is the stuff that is not yet in your head.

You will come across things you did not anticipate. Your view of what is important and what isn’t may be shifting balance. Suddenly a feature you thought was essential turns out to be off the radar for your target group. It could become irrelevant, or it could go the other way, rising from a small thing to a powerful feature. Either way, you have to brace yourself for big changes.

In retrospect, after successfully launching and selling a product over a period of time, you may think that a lot of your team’s decisions were obvious. And you will think, perhaps, how foolish you were for not having seen the path it has taken. But that is only how it looks in retrospect. In reality, you couldn’t have made these decisions without outside influence, to arrive at where you are then.

Admitting misconceptions is almost as hard as admitting mistakes. But realising that what you thought is important is not, and saying “no”, leaving those beloved features behind — this is probably the quintessential element that will decide over success or failure of your venture. Be bold and leave stuff away. Say more “no” than “yes” to features you want, and focus on what people showed you they care about. Then make those things, but in an unexpectedly great way.

It is what made every great product ever made a stunning success.

Factorial Will Change The Way Your Company Deals With HR

Co-founders of Factorial Pau Ramon Revilla (CTO) and Jordi Romero (CEO).

There’s a new startup in town, and we’re lucky to say it’s an itnig company.

Factorial wants to make the HR role both easier and less time consuming through their cloud-based HR platform.

Factorial has already started on-boarding several Barcelona companies to their platform.

Many small and medium businesses don’t have a budget for a full-time HR person, so managing employees, their contracts, pay slips, time off, benefits, insurance and much more, is left to the CEO, the office manager or someone else.

All of these tasks, and more, are automated through Factorial, explains CTO and co-founder Pau Ramon Revilla.

Our customer interviews shows that HR managers use 80 percent of their time on cumbersome chores, and only 20 percent on building culture and boosting productivity. We want to flip those numbers.

Bringing the Zenefits model to Europe (and the world..)

Even though there’s several HR management platforms in Europe, they are not designed for the needs of small and medium businesses (payroll, benefits, time-management, etc.) that Factorial offers, says CEO and co-founder Jordi Romero:

The initial seed idea was to bring the Zenefits model to Europe.

Zenefits was born from newly introduced regulations that forced American companies to provide certain benefits for their employees, but European markets work very differently, and this is where Factorial comes in. They’re currently exploring what to offer in the different markets, and they’ll start in a few European countries, according to CEO Romero.

Usually all companies reinvent their own way of dealing with HR processes, using forms and excel sheets, which is very time consuming. We’ll change that.

Moving fast

Only three months ago Jordi and Pau didn’t have a product, but they’ve been building non-stop and have recently started on-boarding companies into their platform, according to CTO Ramon:

We’re testing what’s basically our MVP with 5–6 companies in Barcelona now, and so far the feedback has been good.

They’re currently raising their first round of funding, and will be using the next 6 months to build an international product, and then establish partnerships for benefits around Europe.

“The initial seed idea was to bring the Zenefits model to Europe” — Jordi Romero

Both Romero and Ramon are coming from executive positions in SaaS company Redbooth, where they worked as VP of business development and CTO.

We’re bringing a lot of valuable knowledge and experience from Redbooth on how to run a SaaS company, the metrics, how to convert users in to actual customers, and much more.

Targeting startups

Factorial is meant for all small and medium businesses, but the first months their targeting startups, says CEO and co-founder Romero.

The co-founders in talks with the itnig design and business development team.

Tech startups usually have higher salaries, and are more creative in ways to compensate their employees. At the same time, they’re often very depending on efficiency and productivity, so it’s a very good fit for Factorial.

Factorial is one of six companies currently being built in itnig’s venture builder in Poble Nou, and all the other startups in the ecosystem are using Factorial.

Now the race to build a great team has begun, says Ramon:

We’re looking for great developers to help us build Factorial. As the CTO of Redbooth I’ve learned a lot about how to grow a team, create a good culture and to foster productivity and creativity. I’m looking forward to applying this knowledge in Factorial.


This post was written by Sindre Hopland, media manager at itnig.


UX/UI and parties

I usually start by saying that I’ve been a designer for the last 15 years, UI designer. “What’s UI?” I get that question a lot, can’t help but smile.

“User Interface,” I respond, trying to answer the question in a few words, “is the visual part of an app. You see, the engineers will write the code, but most people can’t read and understand the code, so the user interface displays all that information in a way anyone can understand. Or at least that’s what good UI does, or tries to do.”

We say app, although UI extends to the OS itself, and nowadays to anything with a screen. We say anyone, but what we really mean is anyone with a certain background — which might be really broad or really specific. We say user interface, when we actually mean graphical user interface; we lost the graphical in the rush of our daily lives.

“So you make apps look nice?” It’s pleasant when people are interested in what you do.

UI is entangled with UX, user experience. Which is how people interact with a tool, the feedback they receive, and the mental model: the way the human thinks the machine operates, to name a few. UI is what you see, UX is everything that happens around it. The interface must be clear and beautiful, the experience direct and pleasant.


Through the years I’ve come to realize that I was always meant to do this for a living. Or perhaps I’m so deep in this shit that it has changed who I am. I love visual arts, I enjoy enigmas and puzzles, and I strive to be as rational and objective as possible.

You’ll recognize a UX/UI designer because when faced with a complication in real life, they will stop to think about it for a second, ask a clarifying question about the usage, and then proceed to recommend something that could solve the problem. The solutions might include getting rid of something that’s not useful, changing the location of certain things, or even wondering if the complication could be completely replaced with a simpler, more adequate thing.

I was at a house party once — I’ve been to more parties, but they’re not as relevant.

The hosts had an ample living room, but all the guests were hanging out in the kitchen (happens at all parties). So the room with the music was empty, and the kitchen was crowded, making it hard get a drink. They had an L-shaped couch in the middle of the living room, dividing the space in two, which is useful for watching movies and creating two spaces in one room. I mentioned to Theo that if we moved the couch, it would create more space, allowing people to stand there — and even have room to dance. We moved it 90 degrees and pushed it against the corner — a change in the user interface. The amount of seating didn’t change, so we added a feature without losing another one in the process. Great!

Then I turned my attention to the dinner table, that was still blocking part of the living room. I should’ve suggested beer pong at the time — let’s call that v2 — but instead I suggested the same operation: turn it 90 degrees and put it against the wall. We also brought the spirits from the kitchen counter to that table, so those drinks were easier to access, freeing up the kitchen, and allowing beers to remain cold and accessible in the fridge. We changed the way you grab a drink (the user experience, that is), divided the most common actions (beers and cocktails) into two main categories with two different flows.

After this, the party was the same: the same conversations, same music, and same people. The contents remained unchanged, but it was more user friendly.

 


 

A party, an appa pedestrian crossing… In the startup world we might consider user interfaces just a part of the many in software, but simplifying and adjusting to our needs the way we interact with tools — and other people — , can always be positive. Next time you’re faced with a complication think:Do I need it? Is it the best solution? Can it be simplified?

A staple can’t get simpler, but you might not need it at all: a paper clip does a similar function and it’s reusable. Or maybe you didn’t even need to print that at all. And as I finish my drink and this paragraph, I wonder if I’ve explained what UX/UI design is effectively. What do you think?

Why Investors Are Looking To Barcelona For The Next Big Thing

Lately I’ve been hearing people talk more and more about international investors, and how they’re increasingly looking to Barcelona for interesting projects.

These rumors confirms a feeling I’ve been having for quite some time. It’s always scary to predict the future, but sometimes you just see a pattern so clear that you need to share it with people.

We’re all tired of comparing different tech hubs around the world, so I will focus on the elements inside the city, and not compare too much to other places.

There are four (probably more..) reasons why I think investors increasingly are looking to Barcelona for investment:

  1. Funding rounds are growing fast
  2. High degree of innovation
  3. City brand
  4. Successful entrepreneurs are giving back

(1) Money, money, money

One of the big challenges of fast-growing startup hubs in Europe are the lack of Venture Capital, and a couple of years ago, this was also a huge problem in Barcelona.

Investors was still licking their wounds from the 2008 financial meltdown, and few were willing to risk their money on new technology.

Last year Barcelona broke all records in terms of funding with €535 million invested in Catalunya. That’s an increase of 87% compared with the year before, according to numbers from Mobile World Capital Barcelona.

It was a also a record year when it comes to international VC’s investing in Spanish companies. Barcelona startup Typeform did a round of $15 million without a single Spanish investor.

Even though many of the big rounds of investment has been coming from abroad, there’s also a growing number of active investors in Spain.

Last year Barcelona ranked as number 8. in concentration of local business angels in Europe, according to the report; The State of European Tech 2015.

We’ve seen many, both big and huge investments in companies like Letgo ($100 million), Jobandtalent ($42 million), Typeform ($15 million). I think that 60% of the startups in Barcelona is operating abroad is one of the reasons why more and more international VC’s are coming to the region.

The FOMO is growing for every big startup getting funded in Barcelona.

(2) Top tier on innovation

According to a new report from European consultancy Science|Business, Barcelona ranks as one of Europe’s most innovative city’s and also one of the places in Europe where people are some of the earliest adopters of new technologies.

According to the study, Barcelona ranks as the fourth best city in Europe for scientific production. Only one year ago the city was ranked as the smartest city in the world in 2015 by Juniper Research.

Even though these types of reports doesn’t necessarily mean that there’s a better environment for tech startups, Barcelona are home to several world famous universities and business schools, and also have Europe’s 5th biggest army of mobile developers.

For startups a big pool of developer talent and tech savvy early adopters are two vital keys in growing fast, and the city is providing both.

In other words, a VC investing in Barcelona knows that the startup aren’t dependent on outside talent, but can hire premium developers from the region, at a much lower cost than other European city’s.

(3) The city brand

The last decade Barcelona has built one of Europe’s strongest city brands, both among tourists and business people.

The last two years the city brand has been ranked as number 4. and 6. in the world, according to The Guardian and The Place Brand Observer,

Tourists come for the lifestyle, the food, beaches and other leisure activities. And professionals enjoys big conferences such as the Mobile World Congress, Barcelona Games World and 4YFN.

4 Years From Know is the annual startup conference that’s runs alongside the Mobile World Congress.

When you combine these two aspects and sprinkle it with the worlds best football club, the famous Modernista architectureand one of Europe’s biggest ports, you end up with an extremely strong brand both among professionals and tourists.

It’s no wonder why big tech companies like Amazon, HP and Telefónica I+D, (the research and development arm of the Telefónica Group), have big headquarters here with thousands of employees.

It’s actually one of the city’s in Europe with most technology oriented Meetups, as much as 13,500 people attended last years events, according to a report.

Investing in a city you don’t know anything about is scary, but the brand of Barcelona makes the city a safer choice for a VC who’s planning to risk millions of his fund on a local startup.

(4) Giving back

One of the most important thing a successful entrepreneur can do after selling his company or running it with profit, is to give back to the community he created the company in.

Without comparing, many of us know the Paypal or the Skype “Mafia”, and what kind of projects they have gone on to support or create.

That experienced entrepreneurs give back through funding new projects, like Bernat Farrero here, is essential for a startup ecosystem to grow.

Luckily we also have people like this in Barcelona (again, without comparing..): Miguel Vicente, Bernat Farrero, Carlos Blanco, and other alike who all have launched or still are running successful companies, but also have chosen to give back to the community through investing and supporting new projects.

However, giving back is an area where Barcelona have potential to grow, and hopefully we’ll see more examples of this the next years as more entrepreneurs succeed in their projects.

If VC’s see success stories, and then again see the same entrepreneurs involved in new interesting projects, they’ll be intrigued to invest.

If you can think of any other reasons, or disagree with some of mine, please let me know below!

Parkimeter Wins CECOT Award

The Catalan organization CECOT representing over 6000 entrepreneurs, awarded itnig startup Parkimeter with the award for best new company.

Once every year CECOT hosts what they call “the night of the entrepreneur” in Barcelona. Here they award different kind of local entrepreneurs, and this year it was co-founders of Parkimeter, Jordi Badal and Ferran Gatius turn to get honored.

The startup that allow you to reserve, pay and find parking spots for your car, was created in 2013, and has been experiencing massive growth in both users and parking facilities the last years.

Soon 500 places to park

As of today, the company offers their users over 380 different locations to park their cars.

Parkimeter’s plan is to reach 500 parking facilities by 2017 in over 80 cities in Spain.

Parkimeter has parking facilities all over Spain.

And it seems like the service was needed, as the startup has parked over 50.000 cars the last three years. To make the parking experience even better, Parkimeter will in a matter of weeks release the new app so you easily can book your parking through your phone.

Even though the area around Barcelona is the one with most parking facilities at the moment, Parkimeter plans for expansion. They raised a seed round this June and plans to start their expansion to the rest of Europe by next year.

“How parking has been changed through technology, is similar to how the travel sector was disrupted 15 years ago,” say co-founder of Parkimeter Jordi Badal.

Smart sustainable cities

Parkimeter recently spoke at the SmartCity conference InFocus 2016, held in the Chinese city of Yinchuan this September.

This year’s CECOT event was also focused on building smart and sustainable cities, that are able to offer services that bring improvements to the lives of its citizens.

The Parkimeter team in their headquarters in Barcelona.

At the CECOT conference smart cities like New York and Dubai presented their plans for the future along with Barcelona represented by Parkimeter which introduced their initiatives to facilitate parking according to people’s needs, optimizing traffic, reducing the visual impact and aligning itself with the policies of mobility each city has.

But Parkimeter does only care about the environment, they also care about your wallet, as Parkimeter’s facilities is up to 50 percent cheaper than normal street parking.

……………………………….

This post was written by Sindre Hopland, media manager at itnig.