A delayed product launch and what it costs.

Delaying the launch of a new product equates to lost revenue. While many companies struggle with product launches, few truly address the real costs. Below is a chart for you to spend some time digesting. It’s the launch of a new product or service and the revenues that it brings in by month assuming a steady growth rate.

Like any investment, a new product (or service) has sales that grow over time, leading to larger sales later compared to those right after launch. Most people equate the cost of delaying a product launch to the lost revenue associated with month 1, the first month the product is available for sale. The reality is eventually if you’re the company owner you’re going to sell the business. Or if you’re an executive overseeing this launch, you’re going to leave the position. In either case what you are actually losing is the final month. On this chart, that’s month 30. If you’re 2 months late, you’re losing months 29 and 30. Three months late, months 28, 29 and 30 are gone. Adding those 3 months together for this late project based on this graph, would be equivalent to losing the first 18 months.

Launching 3 months late makes for a huge loss, though it’s never properly realized on any balance sheet. This is simply the law of exponential growth. Starting earlier leads to significantly larger returns. Don’t let those days slip by for nothing, keep the forward momentum going.