Prioritizing is difficult for startups because there are so many uncertainties and not a lot of solid information to base the prioritizing on. Most of the time it is a judgement call which is uncomfortable because it is easy to be wrong and, as humans, we don’t like to be wrong.
Frequently this difficulty means that startups don’t aggressively prioritize and even if they do they work on multiple priorities at the same time. This is staggeringly inefficient and is indicative of a weak management team that is afraid of committing to a course of action. if you don’t decide you can never be wrong, but you will also never succeed. Human beings are naturally more afraid of loss then they are excited by gain – you have to fight this instinct.
You should only work on your top priority, unless you can no longer efficiently devote more resources or time to it. For example your top priority might be selling to a particular customer – if you’ve done all you can with the customer and you are waiting for them to hold an internal meeting and you can no longer do anything to increase your chances of winning the customer, then you should feel free to work on priority number two.
Imagine that you have two priorities: A & B. Each priority will take you one week to complete and each priority has a 50% chance of revealing something important about your market. There are two approaches
- Work on both priorities simultaneously (in parallel). Since each priority takes a week you will have both priorities completed after 14 days and no results before then.
- Alternatively you can work on the top priority first and only when you have completed it do you work on the second priority (in series). After 7 days you have completed the first priority and after 14 days you have completed both. The bonus is you will frequently discover something important about your market from the first priority
It should be clear that working through your priorities in series rather than in parallel is dramatically more efficient. Have you taken the time to prioritize and do you re-examine your priority order everytime you learn something significant?
Frequently startups pay lip service with prioritization and cheat by pretending to themselves that they are prioritizing. This is easily done by working on projects that are actually multiple different priorities.
Ideally you should prioritize using solid data to back up your prioritization, however given how little information many of you have scientific prioritization is going to be impossible. THIS DOES NOT MEAN YOU CAN’T PRIORITIZE. Even a blind guess at prioritization is better than no prioritising at all. Startups must be good at working with ambiguity and have tremendously limited resources – make sure you applying those resources efficiently.