2 mins to read
If you just heard about the concept or still need to ask this question, you definitely don’t achieve it yet. The concept is defined by Marc Andreesen who said: “product/market fit means being in a good market with a product that can satisfy that market.” Very simple and you can just take it literally: ” let product fit market”. But be careful, it’s very easy to be misunderstood or misused as well.
When you decided to start a business, a lot of “to-do-things” occupied your mind, such as developing the product, raising fund and exploring the market. You might spend 90% of your time on product or market but still can’t get the expected outcomes from your potential investors and customers. That’s very frustrating.
Reaching the product/market fit is tough and time-consuming, but we still recommend you achieve it before taking any other actions. Why?
Product/market fit makes other things easier.
Some people may insist that they have the best team, the killer product, and they don’t need to evolve themselves to adapt to the fickle market. They think customers will chase and beat a path to the door as long as they have the best product.
However, this is not how the real world works.
Firstly, if your product does not fit the market, no matter how good you think it is or how much efforts you have made, you won’t win customers nor the market. It’s just like digging gold without any previous test to determine whether this ground has enough gold to cover all the expense.
Secondly, don’t try to hack the growth before achieving the fit moment. Don’t let your business expands faster than you or your product is ready. But the black humor thing is, it always happens when you thought you are ready while you are not. We called the irrational action “premature scaling”, which is one of the leading causes of business failures. According to a report published by Startup Genome, premature scaling accounts for 70% percent of all startup failures.
Thirdly, when your business isn’t growing, it’s dying. Your investors will leave you as quickly as can. Even though you invested hundreds of thousands of dollar, spent best years of your life, and attempted millions of times on it, you will end up with failure and feel the pain deeply and closely. It is not wise to drill a well from the desert without groundwater layer.
Rules No. 1: whatever business you want to build, reach the P/M Fit firstly.