Product / Market Fit

 

 
Hi, Online Solutions Group here, thank you for joining us.


Today: We’ll Answer. What product market fit? Why is it so important for my business? How do I go about finding it?


You know what the single worst marketing decision you can make is? Starting with a product nobody wants or needs.


For example, imagine there’s a business called Web App Development. They make a product called Web and Mobile Apps.


Web App Development needs an environment with more marketing, so the company targets businessmen. But did Web App Development think about whether this audience really wanted Web and Mobile Apps or not?

Product market fit, or PMF, is being in a good market (big or profitable enough) with a proven and verified product that people in that market want and need.


It’s hugely important. You can have the best team and the best product, but it doesn’t matter if the market isn’t there or your product doesn’t properly meet the market’s needs.


That means PMF is something you must nail early, as in before-you-spend-a-lot-of-money-and-build-your-product early.

But what if you’ve already built your product? Well, it’s pretty easy to tell if PMF is happening or not.


To get PMF, you need to come up with a business hypothesis, create a minimum viable product (MVP), and test the two against each other.


To come up with your business hypothesis, ask yourself: Who will use my product? What problems do they have? How can my product help solve their problems?


Next, create an MVP. It’s your product in its simplest form. You can use it to help you test and prove your hypothesis to make sure you’re solving people’s problems (and attracting a good amount of interest).


To test your MVP, ask: Do people care about my product? Do they use it regularly? And see if you can track how they’re using it so you’ll know if what you’re doing is right.


If your MVP doesn’t support your hypothesis, you might have to pivot – AKA course-correct to test a new hypothesis or strategy. It’s actually pretty common, so don’t worry.


You might focus on a more compelling product feature, redesign for a new market, create a different hypothesis and solution, or find an entirely new idea. Regardless, it often means major product revisions or possibly starting over again.


For example, Airbnb wasn’t always a community-driven hospitality company. It used to revolve around air mattresses on a living room floor.


Originally called airbedandbreakfast.com, Airbnb started during a popular design conference in San Francisco. The founders offered attendees their airbeds in their living room as well as breakfast.


They had some early success, but wanted a better PMF. So instead of focusing on just conferences, they pivoted to go after travelers who needed a place to stay anywhere in the world.


They began to bill their service as a way for travelers to find local, authentic accommodations and network at the same time. And, of course, get free breakfast every morning.


After listening to feedback, they became Airbnb and started helping anyone list or book any type of accommodation (castles, private islands, etc) in 34,000 cities around the world. And the rest is PMF history.


DO THIS NOW! Let’s do the first step for finding PMF: Create your business hypothesis.


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