The product is NOT a great piece of software, or hardware for that matter.
Your product is actually the “Business Model”
“A business model describes the rationale of how an organization creates, delivers & captures value”. Alexander Osterwalder
As an example, here are a few things that are worth considering in a Product Business:
- What market problem do you solve?
- For whom? What are the customer segments? (Buyer Personas)
- Unique Value Proposition. What is the primary reason why buyers will buy your solution? Is it unique?
- Solution (Usually, but mistakenly, referred to as “Product”): what ie the minimal feature set that can support (together with the other points) your value proposition?
- How the solution will be purchased by buyers?
- How to measure progress? What key activity do you plan to measure? Es. how subscribers respond to the solution over time, by using time based cohorts.
- Cost structure
- Pricing and Revenue model. How do you make money?
- Business Sustainability: how hard to emulate is your Unique Value Proposition? It can be a technology platform, a powerful established channel, a level of awarensss in a segment etc.
- Customer retention and support strategy: once buyers become customers, how do you make them happy and loyal? How can you turn them into net promoters?
Anything missing? Anyway, this is closer to “the Product”. Depending on business, there are main factors that describe how an organization creates, delivers & captures value.