MAIN factor of startup success:
Product Market Fit!
How to know if you have it 👇
[1] Your customers stick 🩹
➤ Plot a graph. If your active users are flatlining & not decreasing over time, congrats, you’ve got an engaged active customer base.
[2] They want you 🤞
➤ After the free trial, pull the product. How many people are asking for your product? More than 40%? Great product market fit.
[3] Exponential growth 🚀
➤ If 50% of your new users are coming organically, that means WOM has kicked in 7 that is a great indication.
[4] Low burn rate 💰
➤ If you are generating $1M million in ARR by burning $2M it is more impressive than by burning $5M. 💡How VCs think: In the 1st case VCs feel the market pulls the product. In the 2nd case, VCs feel the product is pushed onto the market. That affects product market friendliness.
[5] Usage even when broken 💔
➤ If your product is broken & people are still using it – that’s a great sign. Does Elon Musk take over of Twitter ring any bells here 🔔? Being the ‘first product’ in the market is not everything. But if you are the ‘first product market fit’ in the market, you’ve won the battle. Microsoft and Google are a testament to this.
