In this step we'll go through a similar exercise as the previous two tasks in evaluating the current state of your product.
This is can be a very difficult task for entrepreneurs. Everyone is critical of themselves, entrepreneurs are doubly critical (we want perfection), and when you've spent as much time as you have working with the same product, we often see flaws that others wouldn't notice, or aren't as apparent (we also can be blinded and not see features we *should have*, but that's a different subject all together!).
In the spreadsheet provided, make a list of all the features your product has - from a customer's point of view. You can include administrative functions (maybe you have a dashboard where you manage customer interaction) - include those too, but don't include things like databases, "rules engines", or things that actually make your product work. Assuming you have a web application, your feature list might look something like this:
…and so on. Again, it doesn't need to be exhaustive, but should include common functions, all of your core product features, and some other customer interaction points. Feel free to include any additional features that are on your roadmap or planned in the next 3-4 months if they're really important or core to your product improvements.
Once you've completed the list of features, give them a score from 1 (rarely works as expected) to 10 (best in the world). Be honest, but don't beat yourself up. A six or seven is "good enough", works dependably, and is probably as good as your competition. But if it doesn't work reliably, don't give it a passing grade.
Finally, assign a category to each feature based on its objective. SOme examples would be: generate sales (buy now, checkout, etc…), help you acquire customers (signup for free trial), engage / retain customers (dashboard, stats, etc…), a core feature of your product, or administration (forgot password).
Once you've completed this task, you should feel like it is a reasonable assessment of your current product state.