Finding Spinout Product Ideas

We’re delving into the world of spinouts, exploring how companies can leverage their existing strengths to create new products and drive growth. Last week, we introduced the topic, and today, we’re diving into the first principle: finding spinout ideas.

Challenges of Scaling for Service Companies

For service-based companies, scaling can be challenging. Often, growth is limited by the need to parallel labor with revenue. This is where spinouts come in, offering a pathway to vertical growth within the same market. By creating products that scale revenue without proportionately increasing labor costs, service businesses can change their trajectory.

Observations in the Field

We’re seeing this trend more and more as we work with clients. Companies are innovating, introducing new efficiencies, technologies, and products to stay competitive and gain an edge.

Getting Started: Finding Spinout Ideas

So, where do we start? It’s all about finding spinout ideas. Sometimes, the idea is already there, brewing within the organization, waiting to be realized. Other times, it requires a deliberate brainstorming process to generate and evaluate multiple concepts.

The “List and Expand” Method

One approach is the “list and expand” method. We take an inventory of our services, customer challenges, and internal hurdles. By breaking down our offerings into smaller pieces, we create a foundation for innovation.

Brainstorming: Identifying Opportunities

Next comes brainstorming. We examine customer pain points and internal challenges to identify opportunities for improvement. We also explore how our internal processes could be turned into products that serve not only our needs but also those of others in our industry.

Examining Ideas: Assessing Potential

Once we have a list of potential ideas, we examine each one. We define the concept, assess its impact on customers, evaluate its scalability, and explore opportunities for enhancement. This structured approach helps us identify the most promising opportunities for further development.

Conclusion and Next Steps

In the upcoming episodes, we’ll dive deeper into vetting ideas, conducting market research, and planning product development. We’ll also explore branding and marketing strategies for launching new products.