What is Product Market Fit? How Can It be Achieved?
Every startup is out there with an idea and a product or a service that adds value to the end user. But many startups fail to achieve what they planned initially. Not creating the right product at the right time and for the right market, ensures that the startup will not achieve the desired goals. Here is how a startup can achieve a Product Market Fit, through careful planning and strategy.
How is Product Market Fit Defined?
Product market fit simply means that your product can satisfy the needs of the market that it had intended to. It takes some time and effort for a product to reach the desirable PMF.
When the users truly start appreciating the product and start recommending it to peers, one can safely say that it has reached PMF.
Usually this stage of the product is marked by numerous positive reviews, both by users as well as the media.
The pace of of product revenue growth starts to put managerial pressures as the growth this faster than the available resources.
Experts believe that creating the best product does not necessarily mean that the product would achieve a PMV. It is critical to understand the needs of the market while creating the product that best suits the audience’s requirements.
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What is a Market?
A market is defined as all the potential users of the product or the services. A reasonable estimate of this can be found out using the google keyword planner tool. The tool helps in finding out the numbers of searches that all the relevant keywords in the industry have. The total number of searches gives a fair idea of the potential users of the product or the service on a monthly basis.
The other way of analyzing the market for a product is to understand the target audience for the product and then finding out the population of that audience. Having a large population of people looking for your kind of product, puts you at a great advantage while creating the product.
Product Quality Improvement
Competition or the threat of competition would stay throughout the life of the product. How can a product strive to achieve better product market fit in a competitive environment? Every product looking to fulfill the needs of the target audience can do so through continuous quality improvement.
A thorough understanding of the audience, gives an idea of what their needs are and what they would be looking for, going forward.
According to Keithhopper, the following ways can be used to determine, if you are on the right track:
Building a Team
How can building the right team help you get the right sort of PMF. Many a times, very high profile teams fail to deliver the right product. On other occasions mediocre teams are able to build the precise product, the audience is looking for. There are many teams whole work really hard to build the product, but fail to understand the needs and requirements of the consumers. Thoroughly understand the needs and requirements of the consumer is the first step to building the right product.
Time To Market
Another important aspect for marketing a product is to market it, in a timely manner. Creating a huge buzz about the product in a timely manner, say before the launch of the product is very important. This communicates the features of the product to the target audience and ensures there are people asking about the product in advance. Launching Alpha and Beta versions of the product, parallely and ensuring the right sort of tweaks are done according to market feedback, is crucial. Analyzing the potential threat from the competition can help you build the right product and launch it at the right time.
Keeping the product cost low from the very start and managing costs effectively can help add new features to the product, as required by the market. Outsourcing to remote teams wherever possible, helps in reducing costs and improving productivity.
Why Is Product Market Fit So Important?
The most important reason for startups to succeed is product market fit. Most startups fail because they fail to achieve product market fit. This should be the key goal of a startup owner. Businesses owners must take all sorts of risks in achieving this crucial goal for the success of the business.
Startups looking to develop the right products for the right set of people must hire an expert solutions provider like ValueCoders. The company provides Agile web and mobile development solutions for specially catering to the requirements of today’s startups.
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