Last week, I attended a management offsite for one of our early stage companies. We were deciding some key questions for the business including go-to-market, pricing, sales strategy and hiring/organizational structure.
These are all hard questions. There was no canonical answer to these questions. Each business is different and market conditions change constantly. So, we chatted about design patterns: the decisions of other companies in similar sectors.
During a long winded conversation about pricing, one of the team members asked a: “How long does this decision last?”
It’s a brilliant question. And it helped us decide on the pricing structure.
No decision is forever. Every choice needs to be revisited as a company progresses. And the younger the company, the more frequently key decisions and strategies should be evaluated. After all, the market changes. The product changes. And the organization itself changes.
We realized the pricing model needed only to work for the next six months. At which point, we would have far more experience in the market and feedback from customers to help us refine our model.
The converse, unfortunately, tends to be true. As companies mature, management evaluates key decisions less frequently. Maybe questioning key assumptions of the market, product and company is the difference in innovation potential between a typical large company and a typical enterprise.