Product Strategy
1. Is my market big enough?
Do the math. What would have to be true for your business to reach $100M in revenue in one year? How many people would need to be using it (and/or paying for it), and how much should you need to make per user?
Do the math. What would have to be true for your business to reach $100M in revenue in one year? How many people would need to be using it (and/or paying for it), and how much should you need to make per user?
Lenny Rachitsky • Your startup idea probably isn’t venture-scale
Qualities of well-articulated strategy
- Short
- Memorable
- Is explained with framework or a metaphor
- Leverages the rule of three
- Is easy to find (and share)
Lenny Rachitsky • Getting better at product strategy
The Founding Hypothesis
Teams that build winning products share some fundamental traits. They know their customers—and what problem they can solve for them. They know which approach to take—and why it’s superior to the alternatives. And they know what they’re up against—and how to radically differentiate from the competition.
Teams that build winning products share some fundamental traits. They know their customers—and what problem they can solve for them. They know which approach to take—and why it’s superior to the alternatives. And they know what they’re up against—and how to radically differentiate from the competition.
To win in business, you must be either a low-cost provider or differentiated. If you’re neither, competitors can “bully” you and take market share. Two questions can help you figure out whether you’re winning in these ways. First, could you match competitor price decreases and remain more profitable than them? If not, you’re not a low-cost provider... See more
Roger Martin • 5 essential questions to craft a winning strategy | Roger Martin (author, advisor, speaker)
a talented leader identifies the one or two critical issues in the situation—the pivot points that can multiply the effectiveness of effort—and then focuses and concentrates action and resources on them.”
Lenny Rachitsky • Getting better at product strategy
Strategy is an integrated set of choices that compels a desired customer action.
Roger Martin • 5 essential questions to craft a winning strategy | Roger Martin (author, advisor, speaker)
- Team Mission : Make it easy and fun to book a home on Airbnb
- Team Vision : If you see it, you can book it
- Team Strategy : Transition the Airbnb marketplace from a “Request to Book” model to an “Instant Book” model, by (1) giving hosts all of the tools they need to be successful with Instant Book, (2) incentivizing hosts to enable Instant Book, and
Lenny Rachitsky • Getting better at product strategy
a spectrum that provides a useful guide to finding ever-increasing PMF:
- Step 1: Get one company to love your product
- Step 2: Get one company to pay (a meaningful amount of money) for your product
- Step 3 : Get more than one company to love and pay for your product
- Step 4: Start noticing a shift from push to pull, and organic growth
- Step 5: Keep grow