Marc Andreessen, the co-founder and general partner at Andreessen Horowitz, once famously said: “The only thing that matters is product/market fit.” While product/market fit is only one of nine building blocks of the FastScaling growth strategy described in my new book, it indeed matters a lot.
Product/market fit has been achieved if your products solve a significant customer problem and satisfy a market need. If you do not find product/market fit and invest in growth, you sell products nobody needs.
To be clear, generating revenue does not mean that you have found product/market fit. In an interview, Fred Wilson pointed out that early traction must not be a sign for having found product/market fit: “A hard charging, sales-oriented founder/CEO can often hide the defects in a product. Because the founder is so capable of convincing the market to adopt/purchase the product, the company can get revenue traction with a product that is not really right.”
Product/market fit is the proof you sell something that is of significant value to your target customers. The value you create translates into a high willingness to pay and a compelling contribution per customer.
Generating product/market fit is not only relevant when you start a venture. It remains relevant at any and all times, particularly if you want to accelerate growth. Growth acceleration often comes hand in hand with expanding your product offering, penetrating new markets, or selling to new customer segments. In all these situations, you need to generate product/market fit before you invest heavily in the distribution of your products and services. Be prepared that you constantly discuss this topic in your your board of directors meetings.
In my book FastScaling, I do not only explain in more detail what product/market fit actually means and what impact product/market fit has on your growth trajectory and cash burn, I also lay out how founders can generate and measure product/market fit.
Please Help Me make Founders Succeed
Unless you are Ken Follett or Stephen King, you unfortunately do not get rich writing books. I have written FastScaling solely in order to help founders succeed. Please help me achieve this goal.
Please have a look inside the book on Amazon and spread the word among your peers, founders, and aspiring founders.
Making founders aware is making founders succeed!
I thank you endlessly!