Stellar Product Strategies for Early-stage Startups
I’m not a huge fan of the term “product strategy” because it often just means making slides about hypothetical futures. However, completely ignoring product strategy can lead to inefficiency and directionless work. Here are four steps that any startup can follow to create a great product strategy:
1. Open the Game
2. Be Different
3. Start with Tactics
4. Lean Toward Your Vision
1. Open the Game
Napoleon loved chess and believed that no opening move was superior to another; he thought it was important to just make a move and get the game going. The same applies to product strategy—start by listening to customers and identifying their problems, then build something to meet their needs without overthinking the competition. When Stripe launched, Paypal was already huge. When Airbnb launched, hotels dominated the market. What mattered was that they started playing the game.
2. Be Different
Figure out what makes your product unique. To do this, categorize your product’s attributes into four areas:
– Eliminate: Factors that the industry competes on but are no longer necessary.
– Reduce: Aspects that should be lowered below industry standards.
– Raise: Elements that should be elevated above industry standards.
– Create: Features that the industry has never offered before.
This approach, known as the Blue Ocean Strategy, helps you focus your resources where you excel. Apple used this method for the first iPhone to differentiate itself in the market.
3. Start with Tactics
Tactics are the small, actionable steps you take toward your goal. Think of them as short paths to achieve your objectives. Strategy is the ultimate destination, and tactics are the route to get there. A successful product strategy involves choosing the quickest route. For example, Airbnb started with room rentals, focusing on the core need, and later expanded to experiences.
4. Lean Toward Your Vision
With countless tactics and possible sequences, it’s crucial to align them with your vision. Without a clear vision, you won’t know where to start or what steps to take next. A strong vision guides your tactical decisions. For example, Airbnb’s vision is to “belong anywhere,” and although their tactics changed over time, their vision remained consistent.
Creating a great product strategy can be challenging, especially for early-stage startups. Hopefully, these steps provide a helpful guide. Take care and good luck!