Wikipedia’s Definition of Product-Market Fit. The degree to which a product meets a strong market demand is referred to as product/market fit or product-market fit.
Product/market fit has been described as the first phase in developing a successful business. In which the firm contacts early adopters, collects feedback, and measures interest in its product (s).
What is Product-Market Fit?
Product Market Fit is a concept that first came to prominence in the Lean Startup Movement. The concept is that you have a product that meets strong customer demand, and they are satisfied with the product.
The customer’s demand is so strong that they are willing to pay for your product or service. In other words, you have found a niche with your product where you can sell it at a price that provides enough income. Further, to continue operating and fund your further development of the product.
How do I know if my startup has a Market Fit?
Your startup doesn’t have Product-Market Fit if:
You are spending time building something nobody wants You are spending time pitching investors who don’t see the vision You are not receiving enough interest from customers.
You don’t have a plan for how you will make money You don’t know what makes your business unique in the market Your customers aren’t pleased with your product/service/competition Your startup is based on a new technology that hasn’t been proven yet because it’s still too new in the market.
Wikipedia’s Definition of Product-Market Fit
What does it mean when we say we want our startup to achieve “Product Market Fit”?
When we say we want our startup to find Market Fit, we mean that we want our company to be able to sell products or services to customers who will pay for them. If our company is spending too much time pitching ideas or building things nobody wants, then we haven’t found Product Fit yet.
So, if our company isn’t receiving enough interest from customers, then we haven’t found it yet. If our company isn’t receiving enough interest from investors, then we haven’t found Product-Market yet.
Next, if the company doesn’t plan to make money long-term, then we haven’t found Product Fit yet. If our customers aren’t satisfied with what they receive or receive poor service in return for their purchase, then we haven’t found Market yet.
If our business is based on a new technology that hasn’t been proven yet because it’s still too new in the market, then we haven’t found Product-Market Fit yet. We want all of these things because they are signs that there is a lot of interest from customers and investors in what our company has created.
Our goal as an entrepreneur is to find Product-Market Fit before anyone else does so that we can get the jump on our competitors.
What are the different strategies for achieving Product Fit?
There are three ways to achieve Product Market Fit: 1. Build a product that people want and then get it in front of them. This is called “Get out of the Building”. 2. Advertise/promote your product to customers and ask them if they like it. Then ask them if they would pay for it. 3. Get a lot of customers to sign up for a free version of your product and then use their feedback to improve it and build a premium version that people will pay for.