A startup faces many daunting challenges as it moves along the path from an idea on paper to a full-fledged company that can stand on its own. It has to be built out piece by piece, function by function, and there is probably no function where I’ve seen companies, both brand new and established, struggle more than Product Management.

Some of the biggest barriers to successfully establishing a Product Management function at a company result from misconceptions about what the function is and what Product Managers are supposed to do for their product and company. These misunderstandings lead companies, especially startups, to waste and therefore lose lots of time on false starts and a poor fit between Product Managers and the company’s expectations.

Yet building a solid Product Management function is an important step in a startup’s development into an ongoing company. Therefore, by understanding which Product Management needs and challenges exist at startups, all individuals with a stake in the company’s success - CEOs, management team members, board members, and venture capitalists - can help move the company towards a new level of product competitiveness.

Read on below for a discussion of the pitfalls involved in creating a Product Management function at a company, along with guidance that will help you be successful in such a vital component.