/startup-design

Strategic Frameworks Reference

Use this document when applying frameworks during Phase 4 (Strategy) and Phase 8 (Validation). These are the canonical definitions — follow them to ensure consistency.

Lean Canvas (Ash Maurya)

A 1-page business model adapted from the Business Model Canvas for startups. Fill in this order for best results:

1. Problem — Top 3 problems your customers have. List existing alternatives for each.
2. Customer Segments — Target customers. Identify early adopters separately.
3. Unique Value Proposition — Single, clear, compelling message that turns an unaware visitor into an interested prospect. Follow the formula: "We help [customer] [solve problem] by [mechanism]."
4. Solution — Top 3 features that address the top 3 problems. Keep it minimal.
5. Channels — Path to customers. Distinguish between inbound (SEO, content, referrals) and outbound (ads, sales, partnerships).
6. Revenue Streams — Revenue model, pricing, lifetime value, gross margin.
7. Cost Structure — Customer acquisition costs, distribution costs, hosting, people, etc.
8. Key Metrics — The 3-5 numbers that tell you how the business is doing. Use the pirate metrics framework (AARRR): Acquisition, Activation, Retention, Revenue, Referral.
9. Unfair Advantage — Something that cannot be easily copied or bought. Examples: insider knowledge, personal authority, community, network effects, proprietary data, existing platform.

April Dunford's Positioning Framework

From "Obviously Awesome." Positioning defines how your product is the best in the world at providing something that a well-defined set of customers cares a lot about.

The 5 components (work through in this order):

1. Competitive Alternatives — What would customers do if your solution didn't exist? Not just direct competitors — include manual processes, spreadsheets, hiring someone, doing nothing. This grounds the positioning in reality.

2. Unique Attributes — What do you have that the alternatives don't? Be specific and factual. Not "better UX" but "drag-and-drop workflow builder that requires zero code." Capabilities, features, expertise, integrations, data, speed, etc.

3. Value — What do those attributes enable for the customer? Map each attribute to a customer benefit. Attributes are features; value is the outcome. "Drag-and-drop builder" → "Non-technical teams can build workflows without waiting for engineering."

4. Target Customer — Who cares the most about this value? The best customers are those for whom your unique value is critical, not just nice-to-have. Define by characteristics that make them care more than others.

5. Market Category — The context you position your product in so the value is obvious. Three options:

   • Existing category: You're a better version of something people already buy (e.g., "CRM for real estate agents")
   • New sub-category: You take an existing category and add a qualifier (e.g., "AI-powered recruiting platform")
   • New category: Rare and expensive to do. Only if nothing else frames your value well.

Value Proposition Canvas (Strategyzer)

Two sides that must fit together:

Customer Profile (right side)

• Jobs-to-be-done — What the customer is trying to accomplish. Include functional jobs (tasks), social jobs (how they want to be perceived), and emotional jobs (how they want to feel).
• Pains — What annoys, frustrates, or blocks them before, during, or after getting a job done. Include risks, undesired outcomes, and obstacles.
• Gains — What outcomes and benefits customers want. Include required gains (must-haves), expected gains (standard), desired gains (nice-to-have), and unexpected gains (delighters).

Value Map (left side)

• Products & Services — What you offer (features, services, support).
• Pain Relievers — How your offering alleviates specific customer pains. Map each to a specific pain.
• Gain Creators — How your offering creates specific customer gains. Map each to a specific gain.

Fit exists when your pain relievers and gain creators match the most important pains and gains.

RICE Prioritization (Intercom)

Score features to decide build order. Each feature gets four scores:

• Reach — How many customers will this affect per quarter? Use a concrete number (e.g., 500 users/quarter).
• Impact — How much will this move the needle for each person reached? Score: 3 = massive, 2 = high, 1 = medium, 0.5 = low, 0.25 = minimal.
• Confidence — How sure are you about reach and impact estimates? Score: 100% = high confidence (data-backed), 80% = medium, 50% = low (gut feel).
• Effort — How many person-months will this take? Higher effort = lower priority.

Formula: RICE = (Reach × Impact × Confidence) / Effort

Sort features by RICE score descending. The highest scores should be built first.

MoSCoW Prioritization

Simpler alternative to RICE. Categorize every feature into one bucket:

• Must have — Without these, the product doesn't solve the core problem. Non-negotiable for MVP.
• Should have — Important but not critical. The product works without them, but it's notably weaker.
• Could have — Nice to have. Include if time/budget allows, but cut first when scope is tight.
• Won't have (this time) — Explicitly out of scope. Important to name these to prevent scope creep.

Risk Matrix

Used in Phase 8 (Validation) for risk analysis. Plot each risk on two axes:

Likelihood: How probable is this risk?

• High (>60% chance)
• Medium (20-60%)
• Low (<20%)

Impact: If it happens, how bad is it?

• Critical — Business fails or pivots required
• Major — Significant delay or revenue loss
• Moderate — Manageable but painful
• Minor — Inconvenience, easily absorbed

Priority quadrants:

1. High likelihood + Critical/Major impact → Address immediately, design mitigation
2. Low likelihood + Critical impact → Monitor, have contingency plan
3. High likelihood + Minor impact → Accept and manage
4. Low likelihood + Minor impact → Acknowledge and move on