For ages, a pattern of first studying the market and then launching a product has been followed. It suits the business to first study the market according to your product and then launch it based on its demand. This process is called the product-market fit. It is a holy grail for budding startups.
Experts are determined that the product-market fit needs a lot of research at the end of the founder and the clients. You can call your product or service a success only after you suffice 40 percent of your sample group.
However, the recent market trend is not completely going in accord with the theory of product-market fit. According to a few, the best way to not waste years of study and money is to think exactly the reverse. Find your market first and then build your product. This is the art of pivoting in startups.
What is Product-Market Fit?
Before you understand the reverse psychology behind the theory, let us first know the concept of product-market fit.
According to entrepreneur and investor Marc Andreessen, product-market fit means finding a good market with a product that can satisfy the market. He is known to be credited for developing this concept.
Though those who believe in this theory say that most who follow this end up successful in the market, some believe the other way. Product-market- fit needs a lot of time to research and study the market's needs and then bring its product to the market.
What is the Market-Product fit concept?
This concept is the reverse of the product-market fit. It says that rather than first finding the right market, bring your product to the market. Market-Product fit is the most cost-effective and efficient to build successful startups. However, in this method, you have to tweak your product more in the customers' minds, but in a matter of time, you start developing a loyal customer base.
Those who follow this method strongly believe that if you are going through the process of a product-market-fit, you are too late launching your product, and the chances of someone else introducing that product in the market before you become higher. There is a constant risk of you losing the tag of being the ‘first in the market.
By being the first and mostly the only one in the market with your kind of product, you can nail your market space in no time. These are some tips to product-market fit your startup.
How does Market-product Fit help?
Time-Saving
Market -Product Fit saves your time. All the time invested in research and survey before introducing your product to the market is saved.
Cost-Effective and needs less manpower
You save a lot of money while implementing the market-product fit. You do not invest money in conducting a pre-launch market study. This saves money you invested in manpower, thus increasing your productivity.
Option to choose your own customers
If you save time by not doing market research before the product's launch, your product exclusivity is persistent. You get a complete market space to explore for your newly launched product. You can then choose which specific group you wish to target.
Gives returns early
In the beginning, when you have a monopoly for your exclusive product, you also get returns from the market very easily. Though it takes some time for your new business to penetrate the market, you start making profits once you have earned a database of loyal customers.
Conclusion
The concept of market product fit is not completely new to the market. It is considered a boon for those who have some exclusive products or services. These startups can easily save their initial investments and utilize that money for launching their products and services, saving time and money.
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