| Hi Shaper ✌️
Welcome to this week's edition of INFUZED on Product.
"Avoid Building a Product Around Your Business Model"
The biggest mistake - particularly young -companies make:
Let business-relevant factors gain too much of an influence on the user-facing product.
Yes, it's important to have a viable business model.
Yes, it's important to understand your cost structure.
Yes, it's important to win paying customers.
But building your product around those factors will likely end up in a subpar product.
Take cost structure. It easily takes over the pricing discussion. Now, it's a transactional game of transferring the cost + desired profit onto the customer.
Which then leads to a focus on maximizing conversion, etc.
I'm not saying those are not relevant, but the likelihood of success increases manifold the other way around:
Identify the pain a person has and then create a product that helps to solve that problem for (or with) them, ideally around their human behavior.
The better you manage to do that, the less you'll face problems on the business side. |
