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What & How to Find Product Market Fit Process?
The product market fit process is crucial for any startup that has an idea and dreams of putting that into reality. It is the underlying step that is make-or-break for businesses that are trying to generate profit and growth. In this article, we will determine what is product market fit, as well as how to find it and the importance of the process.
What is Product Market Fit?
Product Market Fit is a process where a company’s target customer base is using, purchasing and talking about the company’s products and services enough to the point where it can sustain growth and profitability.
In basic terms, a product-market fit is a process that finds a good market with a product so good that it can satisfy said market. It is often used in the startup world to identify when a business has successfully found a customer base on which they can generate profit and therefore growth.
One of the biggest errors companies make is not having a correct product-market fit when they believe they do. This is crucial as investors will want to see concrete evidence of product-market fit before they put their money into a company. Every startup, therefore, has two critical phases: before product market fit (BPMF) and after product market fit (APMF).
Before you create a product or service that you know enough customers are willing to buy, the business cannot waste time on other objectives like wider growth or upselling. These ventures could even prove to be detrimental if you haven’t got a product market fit in place to create revenue.
It is clear to see that finding a product market fit is crucial for any startup that wants to become a legitimate and successful business. It is the part that goes before all the exciting culture, team-building, and selling that occurs after. Without a product market fit, it is all for naught as you will struggle to create profit, find investors and get that all-important capital for growth. The product market fit process makes or breaks a startup before it takes off.
How To Find Product Market Fit
The way to test a product market fit will be different for every company. Similarly, the way to create a product market fit will also be unique and different for each company. There are some baseline processes you can adhere to to be on the right track and work towards achieving a successful product market fit. Here are the steps:
- Find your target market and customer base
- Determine the needs and desires of that customer base
- Work out your value proposition
- Bottom line your minimum viable product (MVP)
- Work on your MVP
- Put the MVP through testing with customers
After you collect this data, test results, and feedback, you will get a much clearer picture of whether you are on the right track toward product market fit. These steps should precede the steps of your business building a strong sales team, effective marketing strategies, and culture for your company to get the best talent.