Would you develop a product before customer demand or in response to it?
Consider the method used by TPGTEX Label Solutions, a Houston-based software company that specializes in bar codes and labels for manufacturers and chemical companies. Like many companies, TPGTEX rolls out new products several times a year. But instead of spending the time and money to develop products on spec, TPGTEX creates mocked-up webpages that list the features of a potential new product -- such as a system for making radio-frequency identification, or RFID, labels -- along with its price. Then, the company spends no more than a few hundred dollars marketing the product through search engines and to the contacts in its sales database and LinkedIn. It isn't until a customer actually clicks or calls to place an order that TPGTEX's developers will build the software. "We do not develop a product until we get a paying customer," says Orit Pennington, who co-founded the six-employee company with her husband in 2002. Development time is typically no more than two to three weeks, and it generally takes just a few orders to cover development costs.