Vision, Strategy, and Product Define the Direction of a Startup

A startup's direction is defined by three key components: vision, strategy, and product. These three components exist in a hierarchy, with vision at the top and product at the bottom.

• Vision: The vision is the overarching goal of the startup. It is the "true north" that guides all of the startup's activities. The vision rarely changes. It is the reason the startup exists, and it is what inspires the team to persevere through the inevitable setbacks.

• Strategy: The strategy is the plan for how the startup will achieve its vision. It includes the business model, the product roadmap, the competitive analysis, and the target customer. The strategy is more flexible than the vision and can be changed through a process called a "pivot". A pivot is a structured course correction designed to test a new fundamental hypothesis about the product, strategy, or engine of growth.

• Product: The product is the end result of the strategy. It is the tangible manifestation of the startup's ideas. The product is the most flexible of the three components and is constantly changing through a process of optimization and iteration. This is often referred to as "tuning the engine".

The relationship between vision, strategy, and product is managed through the Build-Measure-Learn feedback loop. The feedback loop is used to test the hypotheses that underpin the strategy and to optimize the product.