The Art of Knowing What It Takes
Scope
Bro, as an angel investor at the ideation stage - most of my portfolio is in Stealth, thus many an MVP are in the crafting. I’ve noticed a recurring theme: understanding scope is often the linchpin between vision and execution. Ambition is vital—it drives innovation—but misjudging scope can derail even the brightest ideas. Let’s unpack the nuances of scope management, drawing from my experiences on both sides of the startup equation: evaluating pitches and navigating the challenges of building something new.
The Scope Awakening
Not long ago, the technical co-founder of a Cybersecurity / fintech start-up I’m backing, was on a call with the non-technical co-founder. He posed a simple but profound question: “How long until we see our first dollar?” Suddenly, their plan to license their API to banks felt a lot more complex. Beyond building the API, we had to address regulatory compliance, rigorous security audits, prolonged sales cycles, and diverse tech stack integrations. This wake-up call cemented a critical lesson: on a pitch deck, things often look deceptively straightforward. In reality, scope reveals layers of complexity that can make or break your startup.
Understanding Scope: Beyond the Surface
Scope isn’t just about ambition. It’s about the web of dependencies, timelines, and resources you’ll need to make that ambition a reality. In the startup world, scope unfolds across multiple dimensions:
Technical Scope: Infrastructure, scalability, security requirements.
Market Scope: Customer acquisition, market education, competitive landscape.
Regulatory Scope: Compliance, jurisdictional nuances, ongoing maintenance.
Operational Scope: Team building, processes, supply chain management.
Financial Scope: Funding needs, runway, revenue projections.
The Cost of Misaligned Scope
Here are some lessons from the trenches:
Startups:
Monzo’s U.S. Launch: Abandoned their banking license application after underestimating regulatory hurdles.
Modern Health: Pivoted from a direct-to-consumer model to B2B due to high consumer acquisition costs.
Plaid: Took an extra two years to secure initial bank partnerships.
Enterprises:
Healthcare.gov: Cost $1.7B instead of $93.7M, largely due to unforeseen regulatory complexities.
Boeing 787 Dreamliner: Seven years to deliver, $28B over budget—proof that innovation at scale magnifies complexity.
A Practical Approach to Scope Management
Start with a Scope Framework Break down your scope into clear categories:
Technical Requirements:
MVP core features vs. full feature set.
Infrastructure and security needs.
Integration challenges and technical debt.
Market Requirements:
Customer acquisition and market education.
Competitor analysis.
Distribution and partnerships.
Resource Requirements:
Team composition.
Funding needs and timelines.
Operational overhead.
Validate the Scope Ensure you’re not just dreaming; back it up with evidence:
Market Validation:
Conduct 100+ interviews for B2C or 20+ for B2B.
Build a proof of concept before a full MVP.
Test assumptions with minimal viable experiments.
Technical Validation:
Create detailed technical specs.
Get architecture reviews from experienced CTOs.
Build vertical slices of functionality.
Pilot programs to estimate integration complexity.
Resource Validation:
Map critical path dependencies.
Identify key hires and timing.
Plan funding rounds based on milestones.
Adapt as You Learn The best startups evolve their scope:
Start Small: Focus on a manageable, high-impact scope.
Validate Continuously: Test assumptions before scaling.
Expand Strategically: Use customer feedback to guide growth.
Stripe’s journey is a textbook example. They started with a simple payment API and grew into a full-stack financial infrastructure platform by building on proven foundations.
Recovering When Scope Overruns
When scope exceeds expectations, consider these steps:
Refine the Scope:
Focus on your core value proposition.
Eliminate non-essential features.
Streamline architecture to focus on immediate revenue.
Reallocate Resources:
Reassess team structure.
Adjust funding strategies.
Revisit timelines and seek strategic partnerships.
Pivot if Necessary: Take inspiration from:
Slack: From gaming to enterprise communication.
Instagram: From check-ins to photo sharing.
Shopify: From snowboards to e-commerce.
From the Investor’s Perspective
As an angel investor, I’ve found that successful founders excel in:
Setting Realistic Milestones: Pragmatic feature development and resource estimation.
Planning Adaptively: Frequent scope reassessment and flexible timelines.
Awareness of Resources: Deep understanding of funding, team capacity, and market timing.
The Scope Paradox
Here’s the twist: some of the most game-changing companies succeeded because their founders underestimated scope—but pushed through anyway. As Vinod Khosla says, “Those with 20 years of experience often fail to disrupt industries. innovation in retail didnt come from Wall-Mart it came from Amazon. In Taxi’s it didn’t come from yellow cabs, it came from Uber”
The trick is finding the balance:
Understand scope well enough to plan effectively.
Stay flexible to adapt and learn.
Have the guts to chase bold goals.
Build feedback loops to continuously refine your scope.
For founders, this is about marrying ambition with pragmatism. For investors, it’s about spotting founders who can navigate that delicate balance. Scope isn’t a one-and-done exercise—it’s a living, breathing process that evolves with every new discovery and challenge. Stay curious, stay adaptive, and keep building.