These are the foundations of all companies, regardless of their size and level of maturity. Therefore, any start-up must develop skills in each of these four sets, and continuously measure, refine and optimize them.
Product strategy
The architecture of a product represents the set of technologies, applications and functionalities that make up its offering. For a start-up, this set of technologies represents the holy grail to achieve product/market fit, which can eventually lead to recurring revenues or to the partners needed to make its offering more attractive.
Sometimes, in order to achieve product/market fit, a start-up may need to review its product strategy and make a pivot. This may involve developing new features or revising some of them, sometimes the pivot is more drastic and involves changing the positioning or market segmentation.
Either way, pivots are common and a perfectly healthy practice - many successful companies have started out as completely different businesses. The important thing is to listen to the needs of your customers; without a market, there is no product.
Revenue strategy
A startup can spend a significant amount of capital without achieving growth. A startup's revenue model is defined by its business model, category, positioning and monetization capability and should be a priority for the company.
Good revenue architecture allows the startup to generate and monetize excitement, engagement and usage of its product. Conversely, poor revenue engineering can lead directly to failure in the startup phase.
Even before arriving at an MVP, it is normal to test different models before being able to find the one that best suits the product.
Team strategy
Did you know that one of the main causes of startup failure is related to poor team dynamics?
Early stage startups often have small, product-focused teams, and have not yet hired a full management team, or the rest of the staff needed to scale. Competition for top talent is fierce, further hindering a startup's ability to grow.
Often, the wrong people are hired for the wrong role, or early team members are unable to grow at the same pace as the company.
That's why it's important to implement good recruiting practices and invest in the right resources right at the beginning.
System strategy
A startup's systems and processes can either help it accelerate its growth, or they can run it into the ground. A comprehensive systems architecture should integrate the front office and back office, establish performance metrics and cultivate a progressive culture that startups need to thrive.
In addition to operational systems, startups need to ensure that they have a solid technology stack (the suite of applications a startup uses to manage its development process) in order to grow.
In conclusion
We've worked with many start-ups, and we advise founders and teams to put systems and processes in place with the right fundamentals as soon as possible. This allows operational efficiencies to fuel and keep pace with growth, while minimizing upstream issues.
