What I'm going to try to sell you on is the notion that your New Urbanist project is very similar to a tech start-up and you should be learning everything you can about the agile development framework, the lean startup method, customer development, and boot-strapping.
Feedback Loop
The tech sector of the economy is going so strong right now that there is already talk of another tech bubble. The techies are enjoying great success right now while other sectors of the economy aren't doing so hot. Sure, they are working like mad, but they've got a great competitive advantage. Due to the unique nature of the internet they can track their results instantly. They can split test their site designs and ad campaigns to see which products and pitches get the best response. They then adjust as needed and put more effort and money towards what works. They can iterate through product cycles which may last mere hours. The best part is that many of the tools required to gather the required analytical data are free.
Another benefit tech start-ups exploit is the ability to start small. Instead of building the all singing - all dancing full featured finished product they build a widget that acts as a teaser. By concentrating on that first component of the bigger picture, the widget, the tech startup can get a viable product to market in much less time. They can test the market response, and adjust accordingly. The overall cost is much less reducing the amount of funding required to get moving.
The steps are simple:
- Generate big idea
- Develop the Minimum Viable Product (MVP)
- Conduct Market Test
- Iterate as Necessary
- Scale
Like most great ideas, however, it's easier said than done. Considering how successful this model has been in the tech industry it's well worth trying.
Adaptation
The great strength of proper town design is that it yields a resilient urbanism. If the market changes the plan can adapt. This resilient urbanism has existed for centuries in the fabric of the villages, towns, and cities all over the world. Some people might be surprised to know there are even excellent examples of this Old Urbanism in the United States. I have been to many of these places and look forward to going to more. These places are conspicuously hidden at the top of the 'Best Places to Live in America' lists and are well worth your time.
With a town plan framework that can accept multiple building typologies the would-be NU startup team can generate several workable options that serve the current market needs. These options can be tested via website landing pages, online surveys, and even with the help of google ads to drive traffic. Of course, one of the best methods is the public charrette model where feedback can be generated immediately and the plans refined on the spot. With a properly refined project that exhibits positive response from a strong market segment the NU startup can then go about boot-strapping or finding funding for their project.
It seems that every day some savvy tech company closes a multi-million dollar round of funding. By refining a business model before executing and finding a starving crowd in the marketplace through their testing they become money magnets. They've proven their viability and can attract the funding needed to scale.
In previous cycles it was easy enough to follow a well worn path to success. Now, the previous models no longer work. The agile development method empowers smaller developers to pursue underserved market segments so we can break free of the previous failed models. It also allows for the project to be tested before committing which could give more confidence to institutional investors. In order to free up capital they need to be confident that the project will be a success.
Next Steps
Anyone interested in using this model should find their way to Steve Blank's website, read Do More, Faster, and the Four Hour Work Week. These books are a wealth of information on lean startup methods and tools. It shouldn't take too much imagination to see how they can be applied to the world of neighborhood development. Hopefully, in the not too distant future, young developers will be celebrated just like the tech gurus.
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