Category: Product Development

Building Products to Service the Underserved

Technology serves large enterprises making them efficient, and able to turn over a high profit. It also connects people together seamlessly to socialize.  But there are still a number of people who have yet to benefit from technology, one such group are the precariously housed, who make make up the majority of large cities like San Francisco.

Rose Theresa, our second winner of the GitHub scholarship for Femgineer’s Lean Product Development course, sought to change that!

Working in the Mid-Market Tenderlion neighborhoods, she heard many frustrations and time lost whenever the homeless had to line up every morning to have their names entered in the city reservation system for a bed.  To add to the frustration, she saw the amount of paperwork and phone calls required by social service organizations to find availability and to make a reservation.

Rose discovered that a huge amount of time was being wasted on checking availability and making reservations on certain shelter services, like beds.  She knew that some kind of information portal between the two would help save time and reduce needed paperwork.

With this knowledge, Rose and her team set off to put together a product at the Creative Currency Hackathon, an event that brings together developers,designers, and social finance experts to hack a product that helps social service organizations.

After many hours, they were able to put together a prototype called BRIDGE, that would allow shelter-seekers to make and check reservations themselves, and also check availability of other needed services like food and financial management at other local shelters as well via kiosk.

BRIDGE became a finalist in each of the demo days that is was presented, and was mentioned in the SF chronicle, The New York Times, Forbes, and Fast Company.

Although some time has passed since their initial launch at Creative Currency Hackathon, Rose is determined to complete a similar product called, MY CONNECT that would be a step up from BRIDGE that would also help the precariously housed as well as the social service organizations.

Rose is excited that Femgineer Lean Product Development course will guide her along that journey to get MY CONNECT launched and made ready to use by those less fortunate.

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Building a Lean Physical Product

Many of the people that hear about Femgineer’s Lean Product Development course, assume that they need to come in with an idea for a technology product.  But we have a number of students who create physical products as well!

The students who are creating physical products are interested in Femgineer’s Lean Product Development course because they are eager to transition their idea into a physical product or understand how to use the internet as a distribution channel for their product.

Lisa Curtis is one of those students.  Her idea is to manufacture a nutrition bar called Kuli Kuli.

Although there are many types of nutrition bars in the market, Lisa’s Kuli Kuli bar is unique because it includes a special type of ingredient, Moringa.

Lisa‘s was inspired to include Moringa as the special ingredient for her protein bar after serving in the Peace Corps.  While in West Africia, Niger, where she was stationed, Lisa started feeling weak and began to experience early signs of malnutrition.  It wasn’t until she received her meal which was supplemented with Moringa, working in the women’s cooperative, that she started to gain her strength back.

Seeing the health benefits that it brought to the people in her village and herself, she was surprised that no one was selling it in the United States.

It was then that Lisa decided that she would introduce Moringa to the US, and be involved in something she was deeply passionate about.  She also wanted to use the profits to give something back to the women harvesting the Moringa in the villages’, by sourcing 20% of their harvest and paying them fair wages.

But the concept of the nutrition bar didn’t come to her immediately, Lisa and her friends, at first, experimented with different types of foods such as cookies, hummus, and pesto before deciding on a nutrition bar.

Once the first batch of nutrition bars were packaged, they brought them over to their local farmers market to sell for the first time.

Surprisingly, they sold out within hours!  It was then that Lisa knew she was onto something…

To further validate their idea, Lisa did surveys in which they discovered through Marketing Pros that they beat their industry average by 16%.

The major lesson Lisa learned from Femgineer’s Lean Product Development course, was how to do user segmentation and position a product.  She has been able to focus her customer base particularly on women in their early 30’s.

Although, she has gone through many difficulties such as having to obtain health permits , food safety certification, and manufacturing registration, Lisa is ready to take Kuli Kuli to the next level!

With a shoestring budget, she can only produce so much bars. It takes her and her team a whole day to produce 200 bars.  With retailers like Whole Foods requesting shipments of bars, the need to scale manufacturing has been dire.

Using Indiegogo, a crowdfunding website, Lisa is launching a campaign to gain more funding to ramp up manufacturing.

After a week of it being launched she has already amassed $44,470 out of her $50,000 goal.

As she continues, Lisa recommends Femgineer’s Lean Product Development course to everyone pursuing a venture.

“No matter what your product is, the methodology behind iterating and setting milestones is really helpful, and can help anyone in any field.” – Lisa Curtis

 

To learn more about Lisa’s Kuli Kuli bar or contribute to her campaign visit: Kuli Kuli’s Indiegogo Campaign.

 

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Scholarship for Lean Product Development Course

Happy to announce that GitHub is sponsoring a scholarship for one student to participate in Femgineer’s Lean Product Development course.  This scholarship will be available to any student who meets the following eligibility criteria:

  • Genuine financial need
  • Bootstrapping business
  • Product idea is in a prototype stage
  • Demonstrates a strong desire to attend the course

To apply for the scholarship here are the following steps:

  1. Fill out the general course application.
  2. Please mark that you are interested in applying for the scholarship in the general course application.
  3. Once we receive the general course application, you wil then be sent a scholarship application.
  4. Both the course application and scholarship application must be completed by Sunday March 31, 2013.  We will announce the scholarship winner on Friday April 5, 2013.

Depending on the number of applicants, there maybe an additional 30 minute interview conducted with applicants on Monday April 1, 2013.

Remember this is the last time Poornima will be teaching the Lean Product Development course in 2013.  So if you’re committed to advancing your product idea, and interested in utilizing a scholarship to make it happen, then don’t delay, apply today!

 

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How to Transition to a Remote Team

By Alex Notov

I am no stranger to making decisions about whether to work remotely or at the office. I have been a software engineer consultant for more than half of my career.  I have always looked for the following in my gigs: less meetings, more focus on productive and creative activity, and flexibility to meet the needs of more than one client at a time. Over time, it became obvious to me, that the clients that did not require me to come into the office, valued the same, and surprising giving me the freedom to work on my own resulted in them getting the best work out of me.  I began to see a correlation.

The decision on how much freedom to give employees, and how to structure a team is something a lot of startup and even big companies deal with today.  Everyone wants to  make progress, and build a close knit culture, but not everyone knows if it’s possible and the steps to put in place to make it happen.

At the start of BizeeBee, Poornima was bootstrapping the business.  So we began by working out of out of Poornima’s apartment. Poornima was soon able to get the team into a very nice shared office space in downtown Palo Alto (this is when I joined). Though the office space was boss-status – right on University Ave., it was a 2 hour commute for me each way, from Berkeley.  I told Poornima that it made much more sense for me to spend more productive time at home, while reclaiming some of my commuting life back in favor of personal life. It was a win-win.  I mentioned that some people tend to be happier when they can do more with their lives, while still loving the work they do. I counted myself among these (ahem, I actually think that’s most people, whom are honest with themselves).

She agreed to my proposal.  All of us eventually began to do the same – the office became a place where we all met about twice a week.  Poornima then suggested that we move to Palo Alto into our own office space, we all decided to give it a shot. Her main concern was keeping the flow of communication in a young company, not actually office space. Good communication is an exceedingly important part of a successful and functional team, but it’s not made better just by having office space.

I can’t give you a recipe for success, because every company and every team has a different culture and needs.  What I can tell you is what has worked for our team at BizeeBee and what is working for us now at Femgineer.

We spent a number of months in our own office space in Palo Alto.  A few days there and a few days remote.  We used this as an opportunity to fix our communication problems by establishing some very solid processes.

Here’s how we made it happen:

The key element to a successful team is a sense of shared and common vision.  Notice that I didn’t say “the key element to a successful remote team.” That is because the subject of remote shouldn’t even be at the core of the discussion.  The core of the discussion should be around how to bond intelligent self-sufficient and motivated individuals to work together to achieve a common goal – and, how to remove the barriers to the achievement of that goal, as well as to facilitate it.

Poornima has been awesome at building this sense of shared vision and making it clear to the team. It is fundamentally what has allowed us to get through all the communication issues, and focus on improvements over time.

Now that we’ve got the key element out of the way, let’s talk about more practical take-aways.

At BizeeBee, it took us a while to realize that we can all do very effective work without having to pay thousands of dollars on office space and getting there. When we did, we were all happier for it. Did I mention that it’s a pretty nice advantage that you don’t have to pay rent? Duh. This isn’t why you should encourage remote work, but it sure is a nice benefit. At a certain scale, you probably won’t get away without having an office, but until you get to that scale, get rid of as much unnecessary expenses as possible.

So what are some of the logistics, you might be asking?

The second core element is communication. This is what was missing, even when we had office space.

At BizeeBee we agreed that we needed to communicate on a daily basis. There are tools for that. Use Campfire for asynchronous communication among team members. Or, dare I say email? We got very good at talking about features, deliverables, and plans in quick 1-1 meetings, weekly team discussions, and having postmortems after each release. All of these techniques – which took place entirely online – helped us improve our communication and ultimately almost completely helped us eliminate the underlying problems.

The third core element is keeping track of progress and encouraging individual accountability.

We agreed that we needed to keep track of progress on work. How about using something sprint.ly, pivotal tracker, github issues, asana, etc? Pick one. The world of internet project management tools is your oyster. We used pivotal tracker for keeping track of features and releases, github for keeping track of commits, and campfire for daily scrum status updates. All of these methods helped us keep track of our work, and communicate better.

People execute faster when they have the flexibility to choose how they execute.

Attract the best talent starts with giving your candidates the flexibility to balance their lives with their work – and acknowledging that they are not automatons, but human beings, for whom work is one of the essential parts of their daily lives, but that there are others.

David Heinemeier Hansson had recently written an excellent article about creating an environment for exceptional people to do a-grade work that matters to them, and to the overall direction of the company. I could not agree more:

A star environment is based on trust, vision, and congruent behavior. Make people proud to work where they work by involving them in projects that matter and ignite a fire of urgency about your purpose. Find out who you are as a company and be the very best you. Give people a strategic plan that’s coherent and believable and then leave the bulk of the tactical implementation to their ingenuity.

But there are still traces of some old school thinking: there has been a lot of talk in the press recently about CEO Marissa Mayer’s decision to force all Yahoo! remote employees to come into the office. Though I am a bit late to the game, I thought I’d weigh in and say that I find Mayer’s and Yahoo!’s decision absolutely silly. It’s no wonder to me that Matt Mullenweg of WordPress commented regarding Mayer’s leaked internal memo:

For anyone who enjoys working from wherever they like in the world, and is interested in WordPress, Automattic is 100% committed to being distributed. 130 of our 150 people are outside of San Francisco.

At WordPress, like at many other forward-thinking development shops, the founders and team leaders are realizing that their employees’ lives are just as valuable if not more so than their jobs. Sir Richard Branson recently chided Mayer and Bloomberg - New York’s mayor holds similar views to Mayer – about the foolish policies:

However, on this occasion I disagree completely. Many employees who work from home are extremely diligent, get their job done, and get to spend more time with their families. They waste less time commuting and get a better work/life balance. To force everybody to work in offices is old school thinking.

Don’t run a shitty company. Your employees will quit. And I really hope Yahoo has a mass exodus.

So, in closing, and to recap, to transition to a remote team, start with a sense of shared vision,  give motivated individuals the responsibility to execute on parts of that vision by allowing them to take ownership, provide the tools and processes to make that happen, and then adapt to how your team evolves over time in the execution phase.

Oh, and, just one more thing: don’t forget to fire the true slackers. True slackers slack, regardless of whether they are in a cubicle watching youtube videos all day long, or in their pajamas watching a marathon session of the Walking Dead. There’s also nothing wrong with a bit of any of those things in between work. People – your employees are people not automatons – have lives and vastly varied interests outside of work. Encourage them to do what makes them happy and get out of their way.

At BizeeBee we realized it was time to stop paying unnecessary rent. We moved out, and all began to work from home. One of our guys even moved to a different part of the country, and we were still able to ship product consistently!

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Building a Bootstrapped Business

I’ve always been fascinated by businesses that grow slowly, and hit their stride around year 4 or 5 or 10!  What make them interesting is their ability to do so without much outside capital (less than $500k).

Unfortunately, too much of what we see in the mainstream, and what is praised are the home runs hit by startups that are well-funded in their infancy.  But then we see that they are the ones that are prone to early acquisitions.  What leads to their early acquisitions is an inability to balance cost and revenue.  People don’t keep tabs on their sources of costs: servicing customers, overhead – employees, and production.  Instead, the founders strongly fixate on growth, but it’s actually growth that fuels rising costs.  No matter what business you’re in margins are what matter.

Then there are those that aren’t acquired and manage to IPO.  Once again the IPO isn’t fueled by a strong revenues, but growth.  Resulting in common cases where the stock falls precipitously after the IPO, I think we know of a few out there today that have experienced this…

Hence, as founders we have to ask ourselves the question, should we really be striving for hyper growth?  It seems unsustainable because it creates a set of expectations that are untenable long term.

So how do you get past the hype and instead focus first on building a sustainable business that will eventually be big?

1. Focus on value creation.

This of course means that you have to really understand what your customers need, what they are willing to pay for, and how both of those variables change as you move from an early adopter to a mainstream customer.

You can offer a simple value proposition to early adopters and still monetize off of them.  However, you might receive push back after sometime, because they’ll want you to provide deep value that keeps them engaged.

There are startups that don’t raise a lot of capital, and manage to get to break even early on from their early adopter pool.  The secret to their success is putting emphasis on the following formula:

  simple product value proposition (keeps cost of servicing down)

+ attractive pricing (based on perceived value to early adopters)

+ volume (matching up the pricing to the # of customers needed to hit break-even) + identifying key distribution channels (cost effective but lead to quick word-of-mouth)

= repeat business and sustainable revenue growth (keeping customers engaged monthly)

There aren’t too many businesses that I’ve seen do this exceptionally well, but here are a few that come to mind: MailChimp, Olark, FreshBooks.  Because these are all SaaS products they did have to go through a ramp up period, where they were building product for awhile.  The founders worked hard to keep costs low during that ramp up period, but they also had to think about how they were going to attract customers quickly to make ends meet.

2. Steady and sustainable growth.  

It’s perfectly normal to grow and then hit a plateau.  But once you hit a plateau you have to figure out why you are there.  You have to ask yourself the following questions:

  • “Have I created a solid repeatable model?”  (Seeing steady monthly revenues.)
  • “Is it possible to scale to the next level, if I employ a new strategy, or are there limiting factors about the business that make it hard to get to the next level?”  (Limited supply, increased costs of goods, or a limited distribution channel.)
  • “Are there competitors who have entered that are taking away market share?”
  • “Is market demand growing or shrinking?”

3. Knowing when and how to get to the next level.

The most important question that I think founders fail to ask themselves is: “Do I even want to grow this business or am I happy where it is today?”

Realize that growing a business from where it is currently at may require new strategies, and those strategies require some level of introspection.  You have to  analyze what has worked, and what hasn’t.  Then figure out if what has worked can continue to work, or if you have to take some time to discover new methods.  Most importantly:

  • Will those new methods pay off?
  • How long will they take to pay off?
  • What’s the work and resources required to make it all happen?

Going after mainstream customers required 2 strategies.

You’ll first need to figure out how to sell a product to a mass market, which means figuring out new marketing tactics that expose a common problem or experience across customer types.  The second is offering the new customer types a product at a reasonable price, that satisfies demand, production, and service costs.  e.g. the price reduction of the initial iPhone, which led to wider adoption.

When you build a business over time it gives you time to think about these strategies.  But too often we get caught up in a desire for hyper growth, which may or may not arrive.  The desire for it is detrimental to our first goal of creating a sustainable business first by offering a product that customers demand.

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Pricing Your Products: Aim a Little Higher

By Justin Reyes

I recently read a book called Double your Freelancing Rate by Brennan Dunn.  While the the book’s primary audience is freelancers, the reasons and strategies provided by Dunn apply to setting a price point for a product.

Dunn discusses two types of pricing models:

  1. One based on features: where a fee is charged for a fixed feature that you offer.
  2. One based on value: where you set a price point based on the value of results that your customer is receiving.

Most startups do #1 , set their prices to match their competitors, or worse yet don’t even price their product for fear no one will buy it!  They’re too afraid to charge a higher price or raise their prices for fear that it will deter customers from buying their product.

What is often the case, as Dunn mentions, is that most customers are curious about the high price point rather than being put off by it.  Many will actually wonder, “Why is this product higher than the others?  Is the service better?”

It does take people longer to make a decision to buy if a product is priced higher.  However, the  benefit to having a product that is priced higher than others, or raising the price of it is that you are signaling to potential customers that you have a quality product.  You’ve created a product that you are confident will deliver results.  If they are serious about getting results then they should try it out!

Pricing is never set in stone.  You will of course iterate on it based on the feedback you receive from customers.  But if you believe you can deliver a quality solution then set the price point high even for initial customers.


Justin Reyes is an web marketer noob, blogger, startup fanatic, coder (when need be) and obsessed with the Silicion Valley tech community.

 

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Secret to Startup Success: Customer Development

By Justin Reyes

We’ve talked about how startups scapegoat their product when they don’t see the customer adoption they want.  It’s because product development is stressed too much.  What is often overlooked during the initial stages of building a new product is customer development.

Having a great product is essential to meeting customer expectations, but how do you know what those expectations are if you haven’t bothered to talk to potential customers?

The purpose of customer development is to ensure that there is a market for your
product.  Without it the time spent on product development is a huge
waste of time!

A lot of startups Iʼve seen have executed brilliantly on their product.  They have flawless
design, user experience, and responsive features.  But they fail to receive initial traction because there isn’t enough demand for their product.  Contrary to popular belief you cannot create artificially create demand by throwing money into advertising and marketing.  Instead, as Steve Blank author of 4 Steps to the Epiphany famously said, “Step Outside Your Building”, meaning literally go out, meet, and talk to your customers!  Doing this will help you figure out their needs and how much of a demand exists for a product like yours.

However, startups and even larger companies don’t get out much.  It’s partly because they are lazy, but the other part is that they don’t know how.  They make some small attempts like talking to their inner circle: friends, family, and colleagues.  But they don’t go beyond the scope of these individuals.  Often times they even overlook industry heads and potential partners.

The primary problem this causes is that startups fail to truly understand who their early adopter is.  They are of course a unique breed.  They care about being on the forefront of knowing a product, and can be amazing evangelists.  Hence, early adopters are the key to product success!  But finding them takes a bit of effort.  You have to find those who are both enthusiasts and are experiencing the pains you’re product is trying to alleviate.

So how does one find out who is an early adopter is?  Well you begin by identifying a broad base of potential customers for your product.  Think about the benefits you are offering, and who that may appeal to.  While you can start by reaching out to people in your network to interview, you’ll want to make sure that you’re expanding the group of whom you talk to over time.

For example, let’s say we have a vague idea that we want to make a new product for snowboarding.  We’ll want to reach out to the following groups of people: snowboard enthusiasts, snowboard instructors, resort owners, and snowboard product makers.  Snowboard product makers?  Yes it’s important to talk to competitors as well, and it’s super easy to when you don’t have a product, because they don’t see you as competition!  Reaching out can be as simple as saying: “I know you’re into snowboarding.  If you’re open next week, I’d just like to do a quick chat, and learn more about your interest in snowboarding.”

The initial interview is not the time to sell them on anything!  In fact, don’t even talk about your product idea.  Focus purely on them.  Chat about their experience, and get more information regarding their needs.  Their insightful will be tremendously valuable and will help validate assumptions you have.

Aim to have at least 8 to 10 customer interview per customer group e.g. 10 snowboarders, 10 snowboard makers, 10 resort owners, etc.  The reason to aim for 10 is that patterns will only emerge from a sizable group.  If 10 people say vastly differently things, you’ll need to interview more.   The patterns that emerge from interviews feed into the most acute pains or needs, and from that you can think about designing a prototype.  

Notice I said think not build!  People you identify as having the most acute pain, and have  been dying for a product like yours would be willing to pay for it.  You should have a deep enough understanding of their needs, and the benefits of your products to be able to close as sale without having built a prototype yet.  Yes I know this might seem strange, but it can be done.  Check out The Sandler Rules for how to close sales without demoing a product!

Early adopters aren’t created, they emerge from conversations and interviews you conduct.  Only by truly understanding who they are will you be able to tout the benefits of your product, and get them to buy your product before it even exists!

Save yourself time, money, and cycles of frustration: don’t build an entire prototype or product, only to find out that people aren’t willing to actually pay for it or worse yet don’t even need it.  Instead, stop building, step outside of your building, and start reaching out to customers today!

Justin Reyes is an web marketer noob, blogger, startup fanatic, coder (when need be) and obsessed with the Silicion Valley tech community.

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Interview with Global Product Management Talk

We all want to to ship quality products frequently. But too often individuals, teams, and companies are limited by resources or struggle with getting buy-in to move forward. This hinders progress and innovation!

Yesterday I was interviewed by Cindy Solomon of Global Product Management Talk.  During the interview we discussed how lean product development methodologies provide  strategies for building and shipping products that people love.  We dug into my approach for product development within the context of operating on a lean team.  I defined lean teams as one that is limited by resources (time, budget, and talent) and can reside in either a startup or big company.

There were 5 questions that we covered during the talk:

    1. How do companies usually structure product teams? Is this the most effective structuring? Could there be a better way?

 

    1. Agile is considered an alternative to waterfall, but what are some of its shortcomings?

 

    1. How do most people foster collaboration across different roles (engineering, design,product management, product marketing, and sales)?

 

    1. What are the biggest hurdles to getting buy-in for product vision and roadmaps?

 

    1. Do organizations acknowledge silos? What are their attempts to break them down?

 

You can listen to my answers and the full talk here.

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Scraping Product Too Soon?

Not enough customers sticking around?  Blame product.  Not enough customers converting from free to paid?  Blame product.  Just not enough traction?  Scrap product, and pivot!

Too often both business and technical founders use product as a scapegoat for the lack of traction, and an excuse to pivot.  In most cases the product is not the culprit.  Here’s how you know you have a product issue:  your customers are signing up to use the product and then complaining!

They care enough to message you and say, “Hey, I wanna use this thing, but I can’t!”

If instead you hear crickets chirping, in the form of inactive users, there’s nothing wrong with your product per se, there’s a problem with your marketing.  You haven’t done enough market research.

Of course its much easier to just keep building, scraping, and pivoting, instead of actually having a conversation with people in real life!

The next time you want to scrap or scapegoat your product, stop!  Instead do these 3 things:

1. Ask yourself the honest question, who are you building this product for?  Once you have an idea, go out into the world, and find those people.  Ask them for 15 minutes of their time.  Show them the product, and ask for feedback!

 2. If you do step 1 and the feedback is mostly positive: Find out more about these people: Where do they hang out?  What do they read?  Who are their friends?  What is their age/sex/location?

3. If you do step 1 and the feedback is mostly negative: as in these people would never use your product, think broader to discover the people who would!  Hint: they are probably possess the exact opposite characteristics of the people you just chatted with!  (Do this assuming you still care about building this particular product.)

All steps done?  Great!  This is called customer discovery and development.  It’s the step that comes before product development.  Don’t beat yourself up.  We all make this mistake at least 100 times or more, because we’re eager to build, resist the urge as much as possible, and go discover who those early adopters are!

 

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Design Resources for Developers

No one questions the notion that design matters, and good design has also been rewarded.  I’m a recipient of that reward, having been a founding engineer at Mint.com.  While design matters at every stage of a product’s lifecycle, there are some elements to design that matter more than others.  For example, in the initial stages pixel perfection isn’t as necessary as one would think to validate a product’s concept.  What is important is the overall experience a customer has with the brand new product.  Hence one should focus on designing the following experiences:

  • On-boarding
  • Workflows
The reason these two aspects are critical is because they will help to convey the product’s value proposition.  

Being pixel perfect won’t hurt, but if you’re limited on time and resources, you can de-prioritize it.  It’s more important to have a good skeleton, and iterate than strive for perfection in all aspects of a product early on.

As an engineer I’ve been taught mostly how to design software focusing on security, scaling, and test driving development.  Designing for user experiences is something I’ve learned on my own.  Initially I started with like primers like: Design of Everyday Things by Donald Norman and The Laws of Simplicity by John Maeda.  Both were good at teaching me high level design concepts as well as the need for emotional appeal when designing products.

As I grew more interested in creating products on my own, I searched for resources that would give me a step-by-step approach to prototyping.  The first book I came across was Design for Hackers by David Kadavy.  This is a great book for those who know how to build a functional product, but could use a little help refining the design of the product to enhance a customer’s experience.  Kadavy focuses on web design, and exposes simple concepts that will take your product’s design to the next level.  
The second book I’d recommend is Rapid Prototyping in JavaScript by Azat Mardov.  In this book Mardov does a great job of exposing the latest technologies that leverage existing design libraries like Bootstrap so that your prototype has a pretty aesthetic from day one.  This books also serves as a great primer in general for prototyping.  

If you’re interested in reading the other books that have helped me with designing products check out the programming/design section of my reading list.

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