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Product/Market Fit

Product/market fit (PMF) means being in a good market with a product that can satisfy that market.
#andy-rachleff
Zettelkasten, April 02, 2021 (changes)

Notes

  • It was coined by Marc Andreesen in the post Part 4: The only thing that matters.

    • "Product/market fit (PMF) means being in a good market with a product that can satisfy that market."
  • Every company must find its PMF before scaling or sniffing around for venture money.

    • PMF is the absolute prerequisite to sustainable growth.
  • Andy Rachleff says that the value hypothesis, or PMF, is an assumption that brings together:

    • company: what is the product or service;
    • market: which are the audience or customers that are likely to care about your product;
    • business model: how the company will offer the products to the customers who will buy them.
  • You can find the PMF by:

    • changing your customers (market pivot);
    • changing your product.
  • Finding the PMF is not a discrete process. Instead, it requires many iterations and consistency.

  • You can always feel when PMF is happening.

    • You're selling your products just as fast as you can make it.
    • Customers are paying for your product.
    • You're hiring sales and customer support staff.
  • You can always feel when PMF isn't happening.

    • Your cycle sales are too long.
    • Customers aren't getting value out of the product.
    • A lot of deals never close.
    • The reviews are negative or neutral.

Questions

  • How do you find your PMF?

  • Is there a universal process that fits any startup looking for its PMF?

References

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