For a start-up to be successful a variety of factors are required. But one of the most important factors in establishing a market need. All start-up geeks begin with an idea, but not essentially all these ideas are worth taking risks for.
It is not a good idea to jump directly from ideation to launch without properly testing your idea on the market, specifying your ideal customer, modifying the user experience, setting the price, and making sure to have a business model that scales. Your first priority should be to nail product market fit.
How To Get Product Market Fit?
The very first step to how to create a start-up should be testing your assumptions. It's quite easy and inexpensive and if you get it right, you will be able to save a lot of money and efforts down the line.
In the business world, the PMF is when you have the right solution for the right buyer. To achieve this, you need to follow a comprehensive process of noticing patterns, asking questions to your potential ideal customers, evaluating their feedback in a detailed manner, and putting all these pieces together. Let's explore the four steps needed to achieve a product-market fit for your start-up in the article.
1. Ask Questions To Your Ideal Customers & Stop Assuming
Only because you have noticed a market need and come up with an intuitive concept, doesn't mean that you have the right solution for that problem to the customers. The first step should be to ask your ideal customers and eliciting responses out of them so that you can get an idea of how to design and market your product efficiently to them.
In order to understand a market need, you have to do an extensive research and get richer responses through interactive conversations and not just by sending out hundreds of surveys. To test your hypothesis, at least have twelve to twenty conversations.
2. Listen & Evaluate The Responses Deeply
After a few conversations, you will be able to identify common things and patterns in the responses given by your ideal customers. They will share similar stories and its good for you to list them all down.
But this should not stop you from evaluating the conversations even deeper to find nuances and variances. It is quite possible that you might get some tangential ideas which you can use as a key differentiator in your offering.
3. Spot & Note Down The Patterns
The next step should be to identify and spot patterns and common responses from your ideal customers. You should focus on the words they use and what features they like the most. Also, pay attention to their suggestions so that you can get an idea to include features that you haven't thought of yet.
4. Test Your Solution & Iterate It In Accordance With The Preferences Of The Users
In order to make sure that you have the right solution for the right buyer at the right price, it is mandatory to test it. This practice is followed by every successful start-up. For example, when Brian Chesky and Joe Gebbia launched Airbnb, they initially tested their idea with the air mattresses in their living room.
But this was not the end for them. Their product has gone through multiple trials and a few missed prior to hitting the streets in New York City and started interacting with customers and figuring out what they needed and wanted the most.
Once, you have the PMF ready with you, the next step is to create a launch strategy and grabbing the attention of your early adopters. It is not a good idea to exhaust all your resources until you achieve a PMF. This allows you to control your burn rate and make much better start-up decisions.
Anubhuti Shrivastava is a content crafter at Arkenea, a custom software development company helping entrepreneurs and businesses build successful web and mobile apps. She is passionate about writing articles on topics related to design and the software development industry.
Keywords: product market fit, Brian Chesky, Arkenea
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