1. PLANNING
Here are the key steps in initiating a software product. Define your vision, execution plan, roadmap, and team structure.
"Vision without execution is hallucination."
- Thomas Edison
Execution is often the most critical aspect of turning an idea into a successful business. While having a great idea is important, it's the execution that brings that idea to life and determines its success. An execution plan serves as a roadmap, outlining the steps needed to achieve your goals, allocate resources effectively, and stay on track.
Without a solid execution plan, even the best ideas can falter due to lack of direction, missed deadlines, or inefficient use of resources. An execution plan provides the structure needed to break down complex tasks into manageable actions, helping you to focus on what needs to be done now while keeping an eye on long-term objectives. It also allows you to anticipate challenges and plan for contingencies, reducing the risk of surprises that could derail your progress.
Unfortunately, people never seem to get too excited about a plan… until they see the result.
THE 4 ELEMENTS OF YOUR STRATEGY
Here’s a breakdown of the elements you will need to figure out. At the company level there is Mission, Vision, Plan, Tactics. Combine these and you have a strategy. Make sure they are well-defined and understood by the whole team.
We added examples for a B2B SaaS in financial management to illustrate every element of the strategy.
The mission is your business's core purpose—why your company exists. It's the guiding star that aligns your team's efforts and keeps everyone focused on the long-term goals. For a new entrepreneur, clearly defining your mission ensures that every action taken supports this overarching purpose.
Example: "To simplify financial management for small businesses by providing an all-in-one accounting platform that is easy to use, cost-effective, and scalable."
Your vision is the future you aspire to create with your business. It’s a forward-looking statement that describes where you want to be in the long term. A compelling vision provides motivation and direction, helping you to inspire your team and attract stakeholders who share your aspirations.
Example: "To become the top choice for small business accounting software worldwide, known for our exceptional ease of use, integrated features, and unmatched customer support."
The plan is the roadmap that outlines how you’ll achieve your vision. It includes specific goals, milestones, and the resources needed to get there. A well-constructed plan breaks down the journey into actionable steps, making it easier to track progress and make adjustments as needed.
Example: "Over the next three years, we will introduce new features including AI-driven financial forecasting, expand our customer base by 50% through targeted marketing campaigns and partnerships with business influencers, and improve our onboarding process to reduce churn rate by 25%.
The company will:
- Develop and launch AI-driven forecasting tools to help businesses make better financial decisions.
- Increase customer base by leveraging targeted ads, collaborating with industry influencers, and participating in trade shows.
- Enhance the onboarding experience with interactive tutorials and personalized training to ensure new users quickly understand and utilize the platform, thereby reducing the number of customers leaving early.
Tactics are the specific actions and short-term moves that help you execute your plan. These are the day-to-day tasks and decisions that drive your business forward. Mastering tactical execution is critical to making consistent progress and overcoming immediate challenges.
Example:
- Feature Development: Release the AI forecasting tool in a phased approach, starting with a limited beta version within 6 months, followed by a full rollout and promotional campaign within the next 12 months.
- Marketing Campaigns: Run targeted digital advertising campaigns on social media and Google Ads, collaborate with small business influencers to reach potential customers, and participate in small business expos and webinars to increase visibility.
- Onboarding Improvement: Redesign the onboarding process to include a series of interactive guides and video tutorials. Implement a feedback system to continuously refine the process based on user input. Launch these improvements within the next 3 months.
THE 6 SECTIONS OF YOUR PLAN
Here's what your plan should include:
1. Who
Start by involving the right people. In a startup, it's crucial to include key players like sales from the beginning, even if you think the engineering team has it covered. This ensures all perspectives are considered early on.
Effective leadership requires CEOs to focus on anticipating market needs and staying ahead of industry trends, while CTOs should prioritize ensuring the technology's long-term stability and scalability beyond day-to-day operations. Instead of jumping to solutions, it's important to listen to clients closely, asking the right questions to uncover their true expectations and challenges. Building strong relationships with key counterparts, like the client's CTO, can help address issues early and align both teams' visions, ensuring that everyone is working towards shared goals.
2. What
Identify the specific problems your product will solve, not just the features. Start with the problems, then consider the scenarios users might encounter, and finally outline the features that address these issues. This helps create a clear focus on what the product will do and makes it easier for marketing to craft messaging.
3. WhEN
Timing is critical. Plans can fall apart if there's a disconnect between what management expects and what the development team can deliver. The people doing the work should estimate how long tasks will take. Leaders need to set timeframes that align with the overall goals and adjust the scope of work to meet deadlines.
4. Where
This refers to organizational responsibility, not geography. Clearly define who is responsible for what. As your startup grows, you’ll need to align teams around plans, ensuring everyone knows their role in the bigger picture.
5. Why
Define the purpose of the plan. Is it to create a new product category, sustain growth, open new markets, or improve existing offerings? This clarity helps everyone understand the goals and stay focused on success.
6. how
Throughout the planning process, the team decides on tools, architecture, and processes to ensure smooth execution. Engineering might test new technologies, while sales and finance could explore pricing strategies. Everyone should be thinking about how to execute the plan efficiently.
In Summary:
- Define Your Vision & Mission. Clearly articulate your long-term goals and the core purpose of your business.
- Create an Execution Plan. Outline actionable steps, set milestones, and allocate resources effectively.
- Align Team Roles & Responsibilities. Ensure everyone understands their role in executing the plan and achieving the vision.
- Focus on Tactics. Break down tasks into manageable actions that support the overall strategy and address immediate challenges.