Every startup dreams about becoming a product-market fit (PMF), and yet the majority of the startups fail because they cannot achieve product-market fit. It happens because startups fail to plan carefully when working and burn most of their cash beforehand. Therefore, startups right from the get-go must keep product-market fit as their primary goal. Here, you can learn how to achieve product-market fit but before that, let's understand what product-market fit means.
What is a Product-Market Fit?
Product-market fit is a concept that can be defined as the phenomenon when the product you are selling becomes so demanding that your production or supply overwhelms or fails to meet the demand. In other words, achieving product-market fit can be defined as equivalent to attaining "Nirvana" by the startup. It is a dream come true stage for any startup. However, due to a lack of understanding of the concept, startups fail to make the most out of it.
Six Steps to Achieve Product-Market Fit
Following are the six steps that you can master to achieve product-market fit status in your line of business.
1. Find Your Target Customer
The genesis of any startup lies in the idea of its foundation. However, the availability of the target audience ultimately determines its potential. So, right at the starting phase of your startup, give your best to determine how well your product can meet the customer's needs. Depending upon the need and demand of the market audience, figure out your target audience.
2. Get Rid of Unwanted Customer Needs
Once you have identified your target based on what they are looking for, your next step should be to eliminate unwanted customer needs. Once you distinguish what your target audience is looking for and what they are not, it will become easier for you to customize your product further to meet your target audience’s needs more adequately.
3. Set Your Value Proposition
The value proposition is a company's promise or commitment to its target audience or market segment. Draw a strategy and outline a plan to devise how your product can meet your customer needs. Look for the unique features that may set you apart from competitors while ensuring that the customers are delighted by them.
4. Define Your Minimum Viable Product Feature Set
Once you set the value proposition, you should segregate the product for the different market segment requirements. Based on it, determine what should be the least viable features your product should have. While the features don't have to be completely customer-friendly, they shouldn't be deflating to look at right away. Try to strike a balance to ensure that even the least viable product feature is worth the price tag it carries.
5. Test Out Your Minimum Viable Product Feature
Once you have defined your minimum viable product fit, it is time to test waters with it. Put out some prototypes with the minimum viable product and share them with your target audiences to gather sizable sample feedback from a customer questionnaire. It will give you an idea of making changes to make the minimum featured product viable.
6. Make the Changes and Test it Again
Before putting your entire line of products out for sale, you must ensure that they are entirely market-ready to make sales and compete with their competitors. Therefore, it would be best to do multiple testing with your minimum viable product feature to perfect your product as per the customer feedback. Also, if you open up for business with a completely ready product, your chances of achieving the product-market fit will significantly increase.
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