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Unlock Speed and Profits: The Two-Iteration Approach That Transformed Voxloud
Learn how Voxloud used the Two-Iteration Approach to boost speed and profits in their phone production process and see how you can apply this strategy to your business while avoiding its pitfalls.
In my first 14 years of entrepreneurial experience, I've learned that embracing a Two-Iteration Approach can lead to faster results and increased profits.
The optimal solution isn't always the best one to implement.
Let's dive into a real-life example from my company, Voxloud. Let's see how this approach transformed my business.
Voxloud offers a business phone system that includes physical desk phones as part of its monthly plan. In 2019 we decided to produce our branded phones in a Chinese factory. At that point, we faced the challenge of long production and shipping times to Europe and the US.
The Two-Iteration Approach
Instead of waiting for the perfect solution (our Voxloud phones), we took a two-step approach:
Quick and dirty We used phones from our holding company, Wildix. We changed the packaging and inner software to display our logo and colors.
Structured and refined We waited for the Voxloud phones to arrive from China. In the meantime, we onboarded customers with the temporary solution.
This approach allowed us to market in less than two weeks. 🤯 In the 1st iteration, the single cost of a phone was higher than a dedicated production. BTW, the revenues that came in thanks to this move compensated for the higher price and increased our profits.
The Dark Side of the Two-Iteration Approach
The risk of this approach is delivering only the first iteration and not developing the optimal solution. Avoiding this pitfall is essential. The first iteration is usually not meant to scale or provide the best value to the customer in the long run.
Always reserve time for second iterations. Avoid focusing solely on the first to prevent bad reviews or customers from leaving for a competitor.
The Two-Iteration Approach can be a game-changer for businesses seeking speed and momentum.
By focusing on quick, temporary solutions and refining them in the second iteration, you can:
deliver value at the right moment (momentum is key)
But Note: do not stop at 1st iteration. Be sure to keep an eye on the potential pitfalls.
Give it a try, and watch your business thrive 🚀