In the startup ecosystem, the “Product-Market Fit” scenario gets mentioned quiet frequently. Let’s understand what it is.
We can simply put it as “Being in a good market with a good product than can satisfy market demand”.
So, May be your idea is well-thought off and people just don’t get it. (Even the veterans didn’t understood the concept of cloud computing in the beginning. Look at where it is today..!)
Or, May be its not solving an actual problem initially.
But, if the market really wants your product, your product will succeed.
Let’s understand this by a simple example:
You have developed a nutritious Dog Food product.
You tested the product on few Labrador pets.
Now, if they like eating that dog food, your product is probably going to sell.
But what if the Labrador’s don’t like eating that dog food?
How do you get that Labrador to eat your nutritious dog food?
Finding the right product-market fit is a process.
You Try, Fail, Iterate, Fail, Try Again – Ad Nauseum
This will either lead you to a complete failure or Find your perfect product fit for market.
But don’t you think you need a little more guidance than just “Keep Trying!”
This is where the Methodologies of “Lean startup” comes into the picture.
The Product-Market Fit Pyramid helps a founder to visualize the process of finding whether your products fit into the market or not.
This can be further very briefly broken down into the following process:
1. Identifying your Target Customers.
2. Identifying Customers under-served needs.
3. Value you wish to add
4. Create a MVP (Minimum Viable Product)
5. User Experience Testing
Oftentimes, that feedback leads founders to pivot from one idea, market, or niche segment to another in their quest for a great product. (Well, we all know the story behind making of “Slack”)
It’s a simple and sophisticated way to innovative, even if you’re short on resources.
Although being a research-intensive process, if done properly, it can lead your product to a stage where it serves client’s needs, is sustainable, and is verified before the founder’s even starts looking for funding.
However, it’s not just a process only for initial stages. Iterate the process as you continue to develop your product to make sure your product is still market fit. Otherwise?
You might not realize that the Labradors aren’t eating that nutritious dog food anymore..!
Well this is just a tip of iceberg in a giant blue ocean of strategies. Stay tuned to learn more about such strategies..!