The life of any startup can be divided into two parts – before product/market fit and after product/market fit. – Marc Andreessen, Product Market Fit Promoter and Serial Entrepreneur
You were able to make some sales, get a few case studies and learn about the value of your solution — does that mean you have product-market fit? Does that mean that if you do more of the same your business will grow?
Unfortunately, your first few sales don’t automatically mean that you have product-market fit. Product-market fit has more to do with the way in which you convinced your first few validating customers to sign on rather than with the outcome — the sale.
In the same way that selling dozens of products that never get used is not product-market fit, selling a product that doesn’t move the needle is not real success.
Now, is your business model scalable? Is it repeatable?
If you’re selling to customers in different market segments, the sales and marketing processes will not be repeatable. You will need different sales tactics, different techniques to counter objections, different product features, and different assumptions about who the partners and system integrators are in the industry.
- Was I able to consistently add value for customers in a single market segment?
- Did they pay after the pilot project was over or did they churn and move on?
- How engaged and satisfied were the clients with the product?
- Did they refer our solution to other prospects?
If you found product-market fit, congratulations, you’re no longer searching for a business model. You were able to create a business.
Take a day off to celebrate, but don’t celebrate too long. There’s still a lot of work to do. You’re only at the Chasm.
More on How to Get Product Market Fit
- The *Real* Metrics of B2B Product-Market Fit for B2B Startups
- How Much Time Do You Need to Get to Product-Market Fit in B2B?
- Want to Build Products Businesses Buy? – The Lean B2B Course
⚡⚡ Enjoyed this content? I go into way more detail on this subject in Lean B2B. It covers the ins and outs of finding traction in the market for B2B products. Check it out »
Download the First 6 Chapters for Free
This sampler covers the differences between B2B and Business-to-Customer (B2C) product-market validation, shows you how to define your vision for success, find early adopters, select market opportunities and assess a venture's risk. Download The First 6 Chapters Today »