Pilot projects are key to prevent communication breakdowns and obstacles in innovation.

Even if clients have a ton of work in their backlog, never jump into a partnership without testing the waters. A pilot project not only shows a client what it will be like to work with a new vendor, but it also reveals a client’s expectations and collaborative style. If one side proves to be a difficult partner, the two parties can scrap the arrangement with no hurt feelings and little time lost.

In most cases, though, pilot projects help clients and vendors set the stage for better partnerships. By limiting the scope and providing detailed estimates, vendors can avoid communication breakdowns and adapt to potential partners’ working styles. This process is especially important for more technical companies, where scope creep and minor details can quickly grow into major obstacles.

Typical prices and schedules for pilot projects vary by industry. In software development, projects typically last from one month to three months and cost between $25,000 and $50,000. Those figures are substantial enough for both sides to take the work seriously — but not so significant that they lock anyone into a bad agreement.

Small tech startups, for instance, tend to operate in unusual niches. We once worked with a small but established log management vendor. The partnership began when the vendor sought a kernel-level monitoring solution; its team didn’t have the exact expertise to execute this one-time need. Thus, finding an expert third-party partner for this limited-scope project made the most sense.

Eventually, we landed on a 60-day fixed-price pilot project that suited the client’s needs. Outsourcing the work made sense, and by starting with a pilot project, we worked through the early challenges and began a great new partnership.

Pilot projects work with current clients, too. If an existing partner wants a new kind of work but lacks a clear vision, pilot projects allow everyone to explore new ideas without jeopardizing the relationship.