Here’s something new I’ve learned…
When Amazon decides which products or services to develop, it follows a process it calls “Working Backwards”.
The idea is that before they go develop something new, they picture the moment of the launch.
Their marketing department drafts a press release announcing their new product. The details include the (as-yet imaginary) product’s name, its intended customer, the problem it solves and the benefits to the customer.
It even includes quotes from a fictional customer, explaining how they feel about the product and the difference it will make to their life!
There’s also a call-to-action, telling customers how they can take advantage of this product immediately.
The team continues working on this draft press release until it is utterly compelling. When that happens they can decide whether or not to pursue the product, get stakeholder approval and begin development.
Or if it never reads right, they can abandon the project altogether.
They go through this unusual process for several reasons. First, instead of getting swept up in the product itself, it allows them to focus on the customer and their needs because the press release makes the case to the end-user.
But just as critically, it clarifies their vision for the product – and keeps the team laser-focused and on track during its development.
“Iterating on a press release is a lot less expensive than iterating on the product itself – and quicker,” says Ian McAllister, who was once director of Amazon Day (and now works for Uber).
This is what immediately appealed to me when I came across this idea.
You see, when you build your business, you also need to begin with the end in mind.
You need a really clear vision of what your business is going to look like when it’s “done” (ie when you’re ready to retire or sell it – or when it reaches the point that you’re happy with the way it runs).
- What will your core offerings be?
- How many employees will you have?
- How many customers or clients?
- What will your own role be – will you be a hands-on director, in the office every day, or appoint a CEO while you’re supervising more remotely?
- Will you continually withdraw your profits from the business or re-invest?
These are only a tiny handful of the kinds of questions you need to think about in advance.
When you have answers to these and more, you’ll have a full-fledged plan to work to. And you’ll be able to build your business deliberately rather than making it up as you go along.
Yes, there are always changes along the way – no long-term plan will ever survive completely intact. But the initial vision will give you purpose and direction, and ensure that the business you end up with one that you actually want rather than one that comes about haphazardly and doesn’t suit you at all.
And from a financial point of view? Working to a plan will also help you invest your money more wisely and make more considered financial decisions, because you have clarity on your priorities. When you understand exactly what you’re trying to build it’s easier to budget and to plan financially.
That’s exactly why clarifying the vision for your business is part of our work as finance directors. In fact, it’s one of the first things we do when we work together on your financial management, when you become a client of our Outsourced Finance Department.
It’s also one of the few services we offer as a stand-alone experience. You can find out more about our intensive ‘Just One Day’ business planning session here.
To talk to us further about either of these options, simply hit ‘reply’ to this email, or call us on 01279 647 447.
We’ve always written up our client’s vision as a report, but now I’m thinking perhaps it should be a press release…!?
Warmly,
Garry
