Stages of Product Market Fit
How do you achieve Product Market Fit? Most startups don’t understand the definition of PMF. If most people don’t understand the true definition, then how can anyone achieve it?
So, Straight Talk came up with 6 steps, we think (if followed) you can achieve PMF.
1) Defining the problem to solve. Define the problem, then how to solve it…simple.
2) Define the niche-audience. The people you say have this problem & want it solving. Try to be specific.
Example: If selling to a Head of Marketing, then what kind of marketing?
3) Show that step 1 and 2 match up. Prove that the niche + problem = interest in product. (That their willing to pay you to fix their problem. Show you have customers and can generate leads.
4) Define a Success Metric. This is how you know you’re delivering value. This will be unique to what you do. We recommend defining something that represents use.
Example: If your product is designed to be used daily, track how many use it daily for 20 working days straight. If weekly, then track for 6 weeks straight and that they use a feature at least once a week. If multiple features, track it. How many used 5 features in the 1st week?
Create a metric specific & unique to you and begin measuring. You should be able to prove your constantly delivering on that Success Metric and you can use that data to be more successful over time.
5) Can you sell your solution on a constant basis? Show you as a founder can bring those previous steps together. If you can’t sell it as a founder, no one else will be able to either.
6) Finally, make sure you can demonstrate your #’s and how they stack up.
Example: How many people achieve success? Is it improved over time and why? Can you show you’re acquiring people in a particular way? Know your #’s inside out. Show you can explain what you’re doing about those #’s to improve over time.
Once you’ve done each step, you’ll be able to say (with confidence) you’ve achieved Product Market Fit. Because, you have defined a problem, demonstrated an audience that have that problem, they’ll pay to have it fixed, you’ve defined how it can be successful, you’ve demonstrated how you can sell to a small group of people and know your #’s inside out. All of which can be scaled and taken to the next phase.
Which we call Learning to Scale.
By Dan Wheatley, Co-Founder
CEO/Co-Founder of Straight Talk Consulting, a business consultancy that gets our hands dirty. We work with organisations to achieve product market fit before transitioning into scalable and repeatable growth