This document discusses how Finish Line Product Development Services helps small companies estimate costs for product development projects. It notes that accurately estimating costs is challenging without clear requirements or designs. However, Finish Line provides a cost estimation spreadsheet that lists assumptions and allows testing different scenarios to determine how assumptions impact budgets. This tool can help small companies identify which early-stage projects are best to pursue further.

1. Finish Line Product Development Services
A Better Way for Small Companies to Develop Products
Determining Product Development Cost
By Steve Owens

2. Successful product development projects start with
a realistic budget. Knowing how much it will cost to
develop a product is necessary to calculate the
Return on Investment (ROI) and ensure there is
enough cash to complete the project

3. In large companies, this cost estimating is generally
not an issue. These companies complete the
requirements and conceptual design phases and then
build a bottoms-up plan that accurately estimates
these costs.
However, in small companies, the cost of developing
requirements, conceptual designs and development
budgets can be significant in themselves – especially if
many projects will be proposed, and only a few will be
funded.

4. Traditionally, it has been difficult to accurately
estimate product development projects before
having clear requirements and an agreed-to
conceptual design.
There are many assumptions that one must make
that will affect the cost. Our spreadsheet lists these
assumptions and allows one to test the sensitivity of
each assumption.

5. This tool can be very helpful for small companies
looking for a better way to determine which
projects should proceed to the requirements and
conceptual design phase.

6. In addition, the tool highlights which assumptions
will have the most impact on the product
development budget and thus can instruct the
requirements and conceptual design phases so that
there is a higher likelihood of having an appropriate
budget.

7. To Request a free Cost Estimate Spreadsheet. Please
visit our website. Go to the Resources tab and pick
Tools
https://www.finishlinepds.com

8. After 15+ years and 1,500+ projects, we have developed a great
set of tools to help improve product development and are happy
to share these with you. The Rough Order of Magnitude
Template as well as other tools can be found here :
https://www.finishlinepds.com/resources/tools/
Finish Line PDS 94 River Road Hudson, NH 03051
info@finishlinepds.com
Tel: 603-880-8484

9. Thank you!