I’ve had the pleasure of speaking with — and working with — hundreds of entrepreneurs and early-stage founders over the years. Across all backgrounds, especially non-technical founders, the same patterns appear again and again. Here are the five most common mistakes I see.
1. “I just need some CAD…”
This one sets off alarm bells for design agency owners and is a reliable way to spot a first-time physical product founder.
CAD is just one of many tools industrial designers use — it is not “the design.”
Most founders reach this point because they’ve spoken to a manufacturer who told them they can’t quote without CAD. Fair enough — but that doesn’t mean jumping straight into modelling is the right first step.
Even if you’re convinced your idea is perfect, there’s huge value in allowing a design team to explore alternatives, validate assumptions, and apply knowledge of materials, manufacturing methods, and insights from other industries. A fresh pair of eyes often prevents you from getting locked into a sub-optimal solution.
Yes — you’ll eventually need CAD to manufacture. But you’ll also want a product that succeeds commercially. Explore options and test ideas with real users before spending real money on tooling.
Which brings us neatly to the next point…
2. Not gathering real consumer insights
Many founders live with their idea in their heads for weeks, months — sometimes years. They’re so close to the problem that they can’t imagine sharing it, often out of fear their idea will be “stolen.”
This is a huge red flag.
The first lesson most designers teach is simple: your product isn’t for you — it’s for your customers.
If you want the highest chance of success, you must test your assumptions with real users early. Their feedback is invaluable and often highlights blind spots you didn’t know you had.
It’s far cheaper to update prototypes than to re-tool an entire production line.
And yes, protect yourself — get a simple NDA in place. But don’t let secrecy stop you learning what your customers actually want.
3. Not calculating a realistic target cost of goods
Understanding profitability early on is fundamental. Many founders estimate margins based only on manufacturing cost — and are shocked when that margin disappears once they factor everything else in.
Start by defining a target retail price. It doesn’t have to be perfect, but it gives you a crucial starting point.
From there, work backwards and add every cost involved in getting your product to market:
- distributor and retail margins
- freight and logistics
- storage
- packaging
- customs duties and tariffs
- fulfilment and returns
Only after deducting these can you calculate a realistic gross margin (typically 30–60% depending on category).
Skipping this exercise leads to overpriced products that simply can’t compete.
4. Choosing the wrong manufacturing location
Most founders have an initial idea of where they want to manufacture. Sometimes that’s driven by sustainability or marketing value; more often it’s driven by perceived cost savings in the Far East.
China and Southeast Asia absolutely have world-class manufacturing ecosystems — often at lower unit costs. But the “cheap” assumption breaks down once you factor in freight, duties, storage, lead times and minimum order quantities.
If you plan to sell only small volumes in the UK, a UK manufacturer could actually be more cost-effective overall.
Your manufacturing strategy must align with your launch regions and cost-of-goods model. Work out where your customers are, then calculate total landed cost before making the decision.
5. No exit plan
This one surprises founders most.
It feels strange to think about leaving a business you haven’t even launched yet — but having an exit plan radically simplifies decision-making.
Your vision dictates your strategy. For example:
- If you want to build a long-term, multi-generational brand, your focus will be on stability, controlled growth and long-term margins.
- If you intend to prove the concept, patent it and license it out, then speed, defensibility and differentiation become your priorities.
Knowing where you’re heading makes the tough calls clearer, faster and far less emotional.
Let’s Talk
If you’re building a consumer product and want experienced guidance, I’d be happy to hear about your project.
Whether you need a second set of eyes, strategic direction or long-term advisory support, get in touch below to arrange a no-obligations chat about my Advisory & Board Services.