An idea with no business strategy is like a car with no engine. It looks good, but it won’t take you far. Many founders rush into development without a plan for how the product will make money or sustain itself. The result is wasted time, money, and frustration.
In fact, around 38% of startups fail because they run out of money (Failory). You don’t want to be part of that statistic. A strong strategy reduces risk and gives you clarity.
1. Define your value proposition
Your value proposition explains what makes your product unique and why people should care.
Ask yourself:
- What problem does my product solve?
- Why is my solution better than what exists?
- Why would someone pay for it?
Example: Slack wasn’t just “chat for teams.” Its value was saving teams time by replacing messy email threads with instant communication.
2. Choose a business model that fits
There are many models you can explore. Some popular ones:
- Subscription (SaaS): Users pay monthly for access.
- Marketplace: You connect buyers and sellers, take a cut.
- Freemium: Free entry, paid premium features.
- Transaction-based: One-off payments for use or services.
Tool: Use the Business Model Navigator for 60+ model examples you can adapt.
3. Understand your costs and revenue
A common trap is underestimating costs and overestimating revenue.
Break it down into two lists:
- Costs: team, development, hosting, marketing.
- Revenue: subscriptions, commissions, ads, partnerships.
Framework: The Lean Canvas (free) is a simple one-page way to map this out.
4. Test your pricing early
Don’t wait until launch to test pricing. Ask potential customers what they’d pay. You might be surprised.
- Use tools like SurveyMonkey or Typeform to test price points.
- Try “fake door” tests by showing pricing on a landing page, even before you build.
Example: Buffer tested demand by creating a simple landing page showing different pricing plans before the product was ready.
5. Secure funding if you need it
Not every startup needs external funding, but if you do, prepare.
- Bootstrapping: Fund it yourself, keep full control.
- Grants: Explore government or non-profit funding.
- Angel investors / VCs: Exchange equity for capital.
Stats show that less than 1% of startups receive VC funding (Fundz). That’s why alternative funding paths are worth exploring.
6. Have a go-to-market plan
Even the best product fails without users. Think ahead about:
- How you’ll reach your first 100 users.
- Which channels work best: social, partnerships, paid ads.
- What content or campaigns you’ll use.
Framework: Use the Bullseye Framework to focus on the best traction channels.
Conclusion
A clear business strategy is the foundation of any successful product. It protects you from running out of money, guides decision-making, and sets you up for sustainable growth.
One more thing
If this feels overwhelming, you don’t need to figure it out alone. At Polychromeer, we help founders like you refine their business strategy, design clear roadmaps, and turn ideas into products that people actually want. From value proposition workshops to go-to-market design, our studio can guide you through the strategy and execution so you avoid common traps and build with confidence.