A true product market fit

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.

#startup #productmarketfit #gotomarket #startups