---
type: strategy
version: 0.1
schema: stratmd
last_updated: 2026-02-04
owner: Product Team
parent: [[corporate-strategy]]
---

# Strategy: Product-Market Fit

## Strategic Intent

**Question Answered:** How do we achieve product-market fit in the SMB segment?

**Theme:** Focus on one vertical, nail it, then expand.

## Context

Our product serves multiple verticals but excels in none. Customer feedback
indicates we're "good enough" but not "must-have." We need to make a deliberate
choice to focus.

After analyzing our customer base, professional services firms (consultants,
agencies, freelancers) show the highest NPS and lowest churn. This segment
represents 40% of our current revenue despite minimal targeted marketing.

## Approach

We will focus exclusively on professional services firms for the next 12 months.
This means saying no to feature requests from other verticals.

Key initiatives:
1. Redesign onboarding for consultants
2. Build invoicing integrations
3. Create industry-specific templates

### What We're NOT Doing

- Building e-commerce features
- Expanding to enterprise (>500 employees)
- International expansion
- Mobile app development

## Objectives

| ID | Objective              | Measure          | Current | Target | Deadline   |
|----|------------------------|------------------|---------|--------|------------|
| O1 | Achieve PMF signal     | NPS              | 32      | 50+    | 2026-06-30 |
| O2 | Reduce churn           | Monthly churn %  | 4.2%    | 2%     | 2026-06-30 |
| O3 | Increase referrals     | Referral rate    | 5%      | 15%    | 2026-06-30 |

## Initiatives

| ID | Initiative                    | Owner | Status      | Deadline   |
|----|-------------------------------|-------|-------------|------------|
| I1 | Consultant onboarding redesign | Sarah | in_progress | 2026-03-15 |
| I2 | QuickBooks integration        | James | planned     | 2026-04-30 |
| I3 | Template library              | Maria | planned     | 2026-05-15 |

## Assumptions

| ID | Assumption                              | Confidence | Validation Method      | Status    |
|----|-----------------------------------------|------------|------------------------|-----------|
| A1 | Professional services is large enough   | 80%        | Market size analysis   | validated |
| A2 | Focus will accelerate word-of-mouth     | 70%        | Referral tracking      | untested  |
| A3 | Features translate to other verticals   | 75%        | Customer interviews    | untested  |

## Risks

| ID | Risk                          | Likelihood | Impact | Mitigation           | Owner |
|----|-------------------------------|------------|--------|----------------------|-------|
| R1 | Vertical too small            | Low        | High   | Market size analysis | Sarah |
| R2 | Competitor moves faster       | Medium     | Medium | Speed to market      | James |
| R3 | Alienate other verticals      | Medium     | Low    | Clear communication  | CEO   |

## Decisions

| ID | Decision                              | Date       | Rationale                    |
|----|---------------------------------------|------------|------------------------------|
| D1 | Focus on professional services        | 2026-01-15 | Highest NPS, lowest churn    |
| D2 | 12-month commitment to focus          | 2026-01-20 | Sufficient time to validate  |

## Metrics

| ID | Metric               | Type     | Current | Target | Trend  |
|----|----------------------|----------|---------|--------|--------|
| M1 | NPS (prof services)  | lagging  | 32      | 50     | up     |
| M2 | Monthly churn        | lagging  | 4.2%    | 2%     | stable |
| M3 | Feature adoption     | leading  | 23%     | 60%    | up     |

## Foundation Alignment

| Element | ID | Statement                              | Alignment Notes     |
|---------|----|----------------------------------------|---------------------|
| Belief  | B1 | Small businesses are underserved       | Core target market  |
| Belief  | B2 | Simplicity drives adoption             | Guides feature work |

## Success Criteria

- [ ] NPS reaches 50+ for professional services segment
- [ ] Monthly churn drops below 2%
- [ ] 3+ customers cite our focus as reason for choosing us

## Changelog

| Date       | Change               | Reason                      |
|------------|----------------------|-----------------------------|
| 2026-02-04 | Initial strategy     | Q1 planning complete        |
| 2026-01-20 | Added R3             | Board feedback on risk      |