4th September, 2024
Picture this: You’re sitting across from your lead developer, eagerly awaiting their estimate for your latest product feature. You’ve spent hours, maybe even days, meticulously crafting the requirements document. Finally, the developer gives you a timeline that seems reasonable—challenging, but doable. You breathe a sigh of relief, confident that this time, things will go according to plan.
Fast forward a few weeks, and suddenly, you’re in crisis mode. Deadlines have slipped, the budget is stretched thin, and you’re left wondering: What went wrong?
Sound familiar? If you’re a non-technical founder, chances are, you’ve been in this situation more than once. And if it’s any consolation, you’re not alone. The truth is, project estimation is one of the most significant challenges non-technical founders face. But what if I told you that the way you’re approaching estimates might be setting you up for failure?
Before we dive into how to fix your estimation process, let’s talk about why bad estimates are more than just an inconvenience—they’re a serious threat to your startup’s success.
The Visible Costs: Bad estimates often lead to missed deadlines and blown budgets. These are the visible costs that you can easily track and quantify. When a project runs over time, it can delay your product launch, frustrate your team, and erode your customers’ trust. If you’re relying on investor funding, missed deadlines can also strain those relationships and make it harder to secure future rounds.
But the impact doesn’t stop there.
The Hidden Costs: What’s even more insidious are the hidden costs of bad estimates. These include team burnout, reduced morale, and opportunity costs. When your team is constantly scrambling to meet unrealistic deadlines, they’re more likely to burn out, leading to higher turnover rates and a loss of valuable knowledge.
Moreover, every hour spent on firefighting is an hour not spent on innovation or improving your product. The longer your team spends trying to meet impossible timelines, the further you fall behind your competitors who are moving more efficiently.
Bad estimates can also lead to poor decision-making. When timelines are constantly shifting, it becomes difficult to make strategic decisions about resource allocation, hiring, and product roadmaps. You end up in a reactive mode, constantly putting out fires rather than building a strong, sustainable business.
So, how do you avoid falling into the estimation trap? Here’s a practical approach that will help you get more accurate estimates and keep your projects on track.
Step 1: Break Down Requirements into Manageable Tasks
Imagine trying to estimate the time it would take to cook a five-course meal without breaking down each dish into its individual components. It would be nearly impossible to get an accurate estimate. The same principle applies to your project.
Start by breaking down your requirements into smaller, more manageable tasks. For backend work, this might mean defining specific endpoints. For frontend work, break it down into screens and then into individual components like buttons or forms. The goal is to create a detailed task list that gives you a clear picture of the work involved.
Step 2: Estimate Each Task Separately
Once you have your task list, it’s time to estimate how long each task will take. This granular approach allows you to identify potential bottlenecks and complexities early on. Instead of asking your developer for a high-level estimate, work with them to estimate the time required for each task. This way, you can build a more accurate timeline and budget.
Step 3: Prioritize Using the 80/20 Rule
Not all tasks are created equal. Often, 20% of the work will deliver 80% of the value. Identify which tasks fall into that critical 20% and prioritize them. By focusing on these high-impact tasks, you ensure that even if the project runs into delays, the most important features are completed first. This approach also gives you more flexibility to adjust timelines and resources as needed.
The next time you’re tempted to ask your developer, “How long will this take?” remember that the real question isn’t just about time—it’s about understanding the complexity of the work and setting realistic expectations. By breaking down your requirements, estimating each task separately, and prioritizing effectively, you can avoid the pitfalls of bad estimates and keep your projects—and your business—on track.
Accurate estimates aren’t just about meeting deadlines; they’re about building a foundation for sustainable growth. So, take control of your estimation process and watch how it transforms your startup from a constant state of crisis to a well-oiled machine.
Have you struggled with project estimates in the past? What strategies have worked for you? Let’s continue the conversation—share your experiences and tips in the comments below!