The Second 90 Percent
The Second 90 Percent
January, 2008
As a software engineer I have learned over the years that when we tell someone that we have the software development 90 percent complete, it is far from being completed. This is not a result of mis-direction, "fudging" the numbers or intentional falsification of the facts. We actually believe that we are 90 percent complete. However, that is not taking into consideration what I like to call, "The Second 90 Percent." This includes the "tweaks" to get those little bugs out, the testing that will reveal more bugs, the user interface changes that will create even more bugs, and the Help instructions and user manual.
Why is this relevant to you?
Because this Second 90 Percent principle applies to any project, especially the project of developing a business plan or marketing strategy. For the sake of simplicity, we will focus on the business planning process. I will share a recent experience where I have been intimately involved in the first 90 percent and the second 90 percent.
I have been writing business plans for clients for several years now, but until recently that is where my client involvement has ended. I began working with a new client last May to help them develop their business plan. Like many consultants, I used our Plan Write Expert Edition software to ensure a well-thought-out and comprehensive business plan. After the plan was completed we maintained contact; I was intrigued by their product and wanted to keep apprised of their progress. I do this with many of my clients but this one was different. In November they asked me to become more involved in their business. My specific responsibilities had not been determined, but they knew they needed assistance outside their area of technical expertise.
They had been developing this software for two years and had completed their business plan (The First 90 Percent). But now it was time for The Second 90 Percent. Just as much effort that went into the software and plan development would be required to get this "idea" off the ground so they could start getting customers and making money. They were so focused on "the product" that they neglected "the business model." This is not a criticism; it all seemed simple enough and I probably would have done the same thing.
Because their revenue model was based on targeted Internet advertising, it was necessary to understand the logistics of getting the ads delivered and maximizing revenue from these ads. Unless you are simply using Google's AdSense to insert ads on a website, there are numerous complexities to getting targeted ads delivered to your site, or in their case, to a desktop application. I won't go into the details here because this is just one piece of the second 90 percent; there are contract considerations, growth requirements, personnel needs, and the list goes on and on. Additionally, during my due diligence process, I discovered that the advertising revenue assumptions were way off - we had to reduce the first two years assumptions and incorporate a sales staff to achieve the desired ad rates.
With the program completed and the business model tuned to realistic expectations, they have progressed from 90 / 90 to 110 / 70; still a long way to go. What's left, you might ask? They still need funding and they must implement the plan.
It's not my intent to discourage you if you thought you were 90 percent complete. But I want to encourage you to not give up fulfilling your dream. You're not alone - we all have to complete The Second 90 Percent.
Kylon Gustin
VP of Sales and Marketing at Business Resource Software
and President of SMR Services at www.BusinessPlanAdvice.com
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