The number 1 reason why your startup will fail is…
⚠️BAD PRODUCT-MARKET FIT ⚠️
>>Yes, statistics reveal, 42% of startups fail because there is no market for their product.
But what is a Product Market Fit?
As the term says- the product should be a right fit in the market and vice versa.
Simply put, if your product solves your consumer’s problem and the consumers are willing to pay for it, then you my friend have achieved the right product-market fit (PMF).
Don’t just think about consumers, think about how will the product behave in the entire value & supply chain.
As much as the consumer is at ease, is the entire supply chain at ease to make your products reach the final consumers.
>>Let me explain this better through an example:
Think of chai masala, it’s a great PMF because it solves the following:
👉1. Sensory: a great-tasting chai.
👉2. Convenience: open the pack and put the masala in tea – not thinking of a recipe or blending of different ingredients at your end.
👉3. Stability: easy to store, easy to carry, easy to use.
👉4. Consistency: a great tasting chai for family daily.
👉5. Economical: relatively cheaper than buying fresh masalas/ginger daily and much cheaper than sipping tea outside daily.
👉6. Supply chain: is robust in the entire supply chain from factory to your kitchen.
Here are some of the signs your brand has a great Product Market Fit:
🎯.You’re serving a huge geographical area, let’s say- an entire city, early majority, or a mix of tier 1 & tier 2 cities soon after launching.
🎯 You have a good repeat rate.
🎯 Your customers are giving you feedback and promoting your product without even you asking. In plain words, your word-of-mouth marketing is great.
🎯 Your customer acquisitions are slowly getting lower and lower.
🎯 You are spending more on value creation than marketing.
🎯 Your product is robust and friendly in the entire supply chain: from farm to fork.