Product/Market Fit

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.