How To Create Your First Early Stage Design Document

Clearly defining your business in writing is the first step toward making your business a reality

Many new founders make a critical mistake in the early stages of building their new business—they stay trapped in fuzzy thinking – floating between possibilities without ever getting specific. They talk about “disrupting an industry” or “creating a better solution” or “solving an important pain point” but struggle to clearly explain what their business will do, how it will work, and what specific actions will make it successful.

An Early Stage Design Document is your first step toward clarity. This 1-3 page document forces you to move beyond vague ideas and precisely define your business. It becomes an essential tool when bringing on co-founders, team members, or investors who need to understand your vision in concrete terms. Without it, you risk confusion, misalignment, and wasted time.

Later on, you’ll write a more lengthy and defined design document (especially if you’re building software) and a complete business plan, but that comes later. The first thing we have to do is get down in writing as many details and specifics about our business as we can in our Early Stage Design Document. 

What is an Early Stage Design Document?

An Early Stage Design Document is a short, structured document (typically 1-3 pages) that lays out exactly what your business will do and how it will do it. Unlike a pitch deck or business plan, this document focuses on specifics—not grand visions or vague ideas.

It should answer these critical questions:

• What problem does your business solve? (In precise terms, no fluff.)
• Who are your customers? (Not “everyone”—be specific.)
• What exactly does your product/service do? (List features, not just benefits.)
• How will it be built, produced, or delivered? (What’s the actual process?)
• How will it generate revenue? (Pricing model, customer transactions.)

Why Most Founders Struggle With Specificity

New founders often avoid specifics because:

1. They don’t want to limit possibilities.
2. They don’t know the details yet.
3. They’re afraid of being wrong.

But staying vague only delays real progress. A business that remains in the founder’s head, filled with “maybes” and “possibilities,” is not a business—it’s just an idea.

How to Write a Clear and Effective Design Document

Follow this structured format to create your Design Document. Keep it simple, clear, and specific.

1. Business Overview (2-3 sentences)

What does your business do? (State it in one clear sentence.)

Who is your primary customer? (Be as specific as possible.)

What problem are you solving? (Describe it without fluff.)

2. Core Features or Offerings

• What does your product or service actually do? (List exact features.)
• How does it work? (Describe the process, the screens, the systems that will be in place to make it all work.)
• What makes it different from competitors? (Specific advantages, not marketing speak.)

3. Step-by-Step Customer Journey

1. How do they find your product/service? (Ads, word-of-mouth, referrals?)
2. How do they sign up or purchase? (Online checkout, subscription, one-time payment?)
3. What happens next? (Onboarding, delivery, fulfillment, user experience?)

4. Revenue Model

• What are your pricing plans? (Subscription, one-time fee, freemium?)
• How do customers pay? (Online checkout, invoices, recurring billing?)
• What is the expected revenue per customer? (Average sale, monthly spend?)

5. Operations & Execution Plan

• Who is responsible for what? (Founders, team members, roles.)
• What resources do you need? (Technology, suppliers, distribution channels.)
• How will the business actually function day-to-day?

Final Thoughts: Get Specific or Stay Stuck

If you can’t describe exactly what your business does and how it works in writing, then you don’t have a real business yet—just a rough idea. The act of writing this document will reveal gaps in your thinking and force you to make real decisions.

This is not just an exercise—it’s a necessity. When investors, co-founders, or team members ask, “So, how does this actually work?” you’ll have clear answers, not vague possibilities.

Action Step: Set aside one hour today and write your Design Document. Keep it under three pages and focus on exact details. If something feels fuzzy, dig deeper until it’s clear.

🚀 Remember: The clearer your business is on paper, the faster it becomes reality.