What is Product Market Fit in the Startup Journey?
You now have clarity about your idea, that is like your baby.
You have tested it and you are hopeful, but the next question is how do you turn your idea into a product?
Research. And a heck lot of it!
Assuming that you want to go forward with your idea: it is your best bet after improvising and cutting out the ones that were lacking. So, you have a fully validated idea, and now you focus on the market.
The product market fit is the scary part, the moment of truth. It essentially means that you are in a market with a product that satisfies the needs of that market. In essence, you’re fulfilling the needs of your target market. At this stage, founders create a minimum viable product (MVP) that is launched in the market to test the feedback.
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How to do that?
Look at demand. Figure out who your target audience is. “Target” your target audience. You can conduct interviews and surveys and so much more. Find secondary research if you can. Once you know that demand for your idea exists, that is your green signal.
What is your idea’s feasibility?
What does the economics say about your product? After you have researched the market, you need to think about the financial side. This is where you would need to develop forecasted cash flows and income statements. The key to this, again, is research. Use real-time data from competitors and use research, primary or secondary, to get as realistic data as you can. Strong financial estimations will strengthen your startup’s footing.
What is your product’s marketability?
Can you market is successfully? The marketability evaluation serves as a guide for marketers. This evaluation portrays whether your product or service is going to appeal to the right consumers at your price range or not.
And now, you can go ahead with developing the prototype.
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How do you measure if your product is the right fit for the market?
This can be measured through a variety of surveys. Your customer feedback is everything.
1.Recommendations to friends & family
A simple survey on whether your customers will recommend you to friends & family says a lot about their experience and the rate of growth of your customers.
2.What if your startup died today
Another impactful survey is to ask customers how they would feel if your startup died tomorrow. This measures the level of impact that your product has on their life. If the survey result supports your product then that means you’ve nailed the brief and are fulfilling your customers’ needs.
3.Customer retention & loyalty
This is also a way you can measure your product-market fit. If your customers are loyal and you have good customer retention then that means you’re doing something, or a lot of things, right.
In the end, Product-Market fit may sound scary and intimidating, with the amount of research you would have to conduct and the real decisions you would have to make. Even if it does not work out, you should be proud of yourself and pick out another idea but never lose hope!
Read more about the Startup Journey