Product/Market Fit (PMF)
It was coined by Marc Andreesen in the post Part 4: The only thing that matters.
- "Product/market fit 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.
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 product will be offered to the customers buy it.
You can find the PMF by:
- changing your customers (market pivot);
- changing your product.
Finding the PMF is not a discrete process. 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.
How do you find your PMF?
Is there a universal process that fits to any startup looking for its PMF?