Note: I'm writing this post early on in this series because it seems to be a burning question. I will get further into the weeds of some of the concepts here in future articles.

Also, if you like what you read here, let me know! Sometimes I have to skim over parts that deserve a deeper dive and I'm happy to do that if there is demand. Leave a comment or DM me your thoughts.

Spoiler: It depends.

Balancing the need to build with the need to sell is tricky. These two components of building a successful business are critical, and our pattern-seeking brains can trick us into believing that we need to do one first and then the other when in reality, it’s a little from Column A and a little from Column B.

But, in truth that whole conversation is a bit of a fake-out. Neither building nor selling really matters until you understand your target market. I know, it’s not sexy like jumping into Figma or Framer, or coming up with that killer sales funnel. It’s the equivalent of eating your veggies first, which we all know, is good for you.

What does it mean to understand your target market? The best place to start is with questions:

• Who are they?

• What are their pain points? How do you know?

• What are their needs and wants? How do you know?

• What job are they trying to get done?. How do you know?

• What's in their way?

…the list goes on. Understanding your target market makes everything easier, and I would argue that it's the place you should spend the most time initially.

Ok so let’s pretend you know enough about your target audience to get started. Now, what do I do? Let’s do a quick risk/benefits analysis of selling first versus building first. (I'll go deeper in future posts).

Benefits of selling first

Selling first not only helps you understand your market even better, but it can provide you with fantastic feedback on whether there is demand for your product or service, or not. This saves you time and money by avoiding building something that nobody wants (just check out the gigantic graveyard of products with no clear audience on ProductHunt). Also, pre-selling can sometimes generate revenue before the product or service is even complete. Result!

Benefits of building first

Building first can help you to create a better product or service. By focusing on creating a version of the product or service first, you can make sure it meets the needs of your target market at some level, and get crucial feedback about what works, and what doesn't. Some people like to have a "thing" to play with, to look at and give feedback on. Having something also means you can quickly add/subtract/edit to fit your customer needs better. Having a completed product or service (or a partial product that resembles a finished product) can help with sales and marketing efforts and build credibility with potential customers.

Risks of selling first

Selling a product or service that doesn't yet exist can be risky. If you can't deliver on your promise, you risk damaging your reputation and losing initial customers (those first customers are super-valuable!). I’ve seen it happen that pre-selling can create pressure to rush a product or service to market, resulting in a subpar offering, negative feedback and then a loss of interest and steam for the project.

Risks of building first

Building a product or service without a clear understanding of your target market can result in creating something that nobody wants (the greatest reason of all for failed projects). And building a product or service without even a little strategy and understanding of the business model can result in difficulty generating revenue and reaching customers. (I'm sure that there is a need for knitted hats for siamese turtles, but I'm just not sure the market is big enough to support your business, know what I mean?).

So, in essence…it depends. Every situation is literally different and the decision to build or sell first depends on factors such as your specific business, the market you are entering, and even your own skillset. But, on this last point, I will make a concession: momentum matters when you are starting out, and getting hung up on this one question will not serve your aspirations. I'm a huge believer that a business should suit the founder, and for that reason, a founder should seek to move fast by utilizing whatever skills they have at hand to make progress. If you have more marketing experience, think about marketing first. If you are an engineer, think about the fastest way to create an MVP or similar. But know that you will need the other skills at some stage.

It's hugely important to validate your product or service by getting feedback asap (even pre-selling), while also focusing on delivering the best offering you can manage in that moment that meets the needs of your target market.

But always remember. Execution matters, and action produces information.

Notes:

As I was writing this I got sent Jordi Bruin's "2-2-2" method for shipping side projects. This method very much falls under the banner of the "Small Bets" approach. There are lots of frameworks that people have for ideating and launching, I'll get into them in later posts.

Also as I wrote this, Brian Kenny, Founder of MiniCorp, posted a fantastic 10-minute breakdown of a super-simple way for a SaaS to get their first paying customers - check it out here.