identifying product market fit

TathagatVarmaKnowledgepreneur

http://thoughtleadership.in

90%

http://qz.com/682517/after-analyzing-200-founders-postmortems-researchers-say-these-are-the-reasons-startups-fail/

https://steveblank.com/2014/06/28/customer-discovery-the-search-for-productmarket-fit-2-minutes-to-see-why/

�   MarcAndressan(2007):�   Product/marketfitmeansbeinginagoodmarketwithaproductthat

cansatisfythatmarket.�   WhenyouareBPMF,focusobsessivelyongettingtoproduct/market

fit.Dowhateverisrequiredtogettoproduct/marketfit.Includingchangingoutpeople,rewritingyourproduct,movingintoadifferentmarket,tellingcustomersnowhenyoudon'twantto,tellingcustomersyeswhenyoudon'twantto,raisingthatfourthroundofhighlydilutiveventurecapital--whateverisrequired

�   PaulGraham(2008):�   Makethingspeoplewant.

�   SeanEllis:�   Achievingproduct/marketfitrequiresatleast40%ofuserssayingthey

wouldbe“verydisappointed”withoutyourproduct.�   PMFasapre-conditiontoscalingupbusiness!

�   MichaelSeibel(2016):�   Focusingonmarketfirst!

“Youcanalwaysfeelproduct/marketfitwhenit'shappening.Thecustomersarebuyingtheproductjustasfastasyoucanmakeit--orusageisgrowingjustasfastasyoucanaddmoreservers.Moneyfromcustomersispilingupinyourcompanycheckingaccount.You'rehiringsalesandcustomersupportstaffasfastasyoucan.Reportersarecallingbecausethey'veheardaboutyourhotnewthingandtheywanttotalktoyouaboutit.YoustartgettingentrepreneuroftheyearawardsfromHarvardBusinessSchool.Investmentbankersarestakingoutyourhouse.”–MarcAndreessen

Youcanalwaysfeelwhenproduct/marketfitisn’thappening.Thecustomersaren’tquitegettingvalueoutoftheproduct,wordofmouthisn’tspreading,usageisn’tgrowingthatfast,pressreviewsarekindof“blah”,thesalescycletakestoolong,andlotsofdealsneverclose.–MarcAndreessen

1.  Determineyourtargetcustomer2.  Identifyunderservedcustomerneeds3.  Defineyourvalueproposition4.  SpecifyyourMVP5.  CreateyourMVP6.  TestyourMVPwithcustomers

Itisaniterativeprocess.IterationleadstofeedbackonMVP,whichgetsrevised.WhenyouMVPisvaluable,easytouse,etc.,youhavefoundPMF!

http://medium.com/lean-startup-co/a-playbook-for-achieving-product-market-fit-434a644a9b91#.k8b6q93dp

�  TheValuePropositionCanvaszoomsintothedetailsoftwoofthebuildingblocksoftheBusinessModelCanvas

�  Helpsyoucreatevalueforyourcustomer

�  CustomerProfile:clarifyyourcustomerunderstanding

�  ValueMap:describehowyouintendtocreatevalueforthatcustomer

�  Youachieve“Fit”whenvaluemapmeetsyourcustomerprofile–whenyourproductsandservicesproductpainrelieversandgaincreatorsthatmatchoneofmoreofthejobs,pains,andgainsthatareimportanttoyourcustomer.

http://www.slideshare.net/rishi12/finding-product-market-fit-introducing-the-pmf-matrix-presentation-by-rishi-dean-to-mit-sloan-breakfast-club

1.  Productmarketfitisalwaysadiscrete,bigbangevent

2.  It’spatentlyobviouswhenyouhaveproductmarketfit

3.  Onceyouachieveproductmarketfit,youcan’tlostit

4.  Onceyouhaveproductmarketfit,youdon’thavetosweatthecompetition

http://blog.pmarca.com/2010/03/20/the-revenge-of-the-fat-guy/

1.  YourproductisNOT“theproduct”2.  Brainstormmultiplemodelsandprioritizewheretostart3.  Understandthethreestageofastartup4.  Focusontherightmacrometrics5.  Formulatefalsifiablehypotheses6.  Architectforlearning7.  Architectforspeed8.  Goonlyasfastasyoucanlearn9.  Validatequalitatively,verifyquantitatively10.  Systematicallytestyourmodel

http://www.slideshare.net/ashmaurya/10-steps-to-productmarket-fit

http://torgronsund.com/wordpress/wp-content/uploads/2011/04/Slide1.jpg

GET OUT OF THE BUILDING…

�   Product-MarketFitisallaboutfindingthe“resonance”betweenyourcustomer’sneedsandyourvalueproposition

�   Youstartwithsketchingyourassumptionsonpaper.AtoollikeVPCorPMFCcouldbeuseful.

�   However,youneedtovalidateyourassumptions!So,youbuildanMVPandtestitrigorously.

�  WhenyouseeyourBMCischeckedallgreen,youhaveno“guesswork”leftunvalidatedanymore.

�   Atthatpoint,youhaveachievedPMFandhaveaplaybookfornextphaseofgrowth.

�   http://web.archive.org/web/20070701074943/http://blog.pmarca.com/2007/06/the-pmarca-gu-2.html

�   http://productmarketfitcanvas.com/�   http://rishidean.com/2010/03/15/finding-product-market-fit-introducing-the-pmf-matrix/

�   http://blog.pmarca.com/2010/03/20/the-revenge-of-the-fat-guy/�   https://leanstack.com/achievingproductmarketfit/�   http://www.startup-marketing.com/the-startup-pyramid/�   http://www.slideshare.net/ashmaurya/10-steps-to-productmarket-fit

�   https://www.quora.com/How-do-you-define-Product-Market-Fit

�   http://www.themacro.com/articles/2016/06/the-real-product-market-fit/