Product-Market fit

4 minutes

Do you know the reason why the absolute majority of new companies fail? Lack of real demand for their product or service. The offer of these companies is built "from the table" without real contact with the market and its needs.

Before you start creating a presentation of your products and services on the Internet, answer a set of basic questions referred to as Product-Market fit.

It's a proven way to find out to what extent your offering meets real market demand. Plus, you'll get the opportunity to adjust the structure and communication of your products and services to match market demand as closely as possible. 

Is the ideal client and their needs clearly defined?

In other words, answer what kind of person will use your service most often. Is it a specific position or people in a specific industry? Do they live in the same city? What needs do such people have? What situation are they likely to be in? What are their goals? What are their fears and what are they afraid of?  Be as specific as possible.

Is the ideal client approachable?

Is the person reachable directly or through a Facebook or linked-in campaign? Will you invite them to a company event or can they be called? What channels and methods will you use to reach the person and start a conversation?

Does the ideal client have the resources to purchase your service?

If the pricing for your service is set and you know who the ideal client is, then it's time to verify if they have the resources to purchase your service. If this condition is not fulfilled, then there is no point in going into marketing and sales, but the service and its target audience need to be redesigned.

Is the problem you are solving urgent and painful? 

What does the client risk by not using your service? Does your service solve a problem that is important and pressing to the ideal client?  If so, you can expect high demand and a short buying cycle. Conversely, if the problem you're solving isn't urgent enough, you can prepare for months of decision-making with an uncertain outcome.  

What is unique about the service? Is your service the best or only solution? 

How is your service different from your competitors from the client's perspective? Is it clearly defined and perceived value by the client? Is it a quality that makes the client's decision easier? Or is your solution unique or the only one possible for a particular client or situation? In what way? Don't settle for a general answer, be specific. 

Can you provide the service effectively?

Do you want to have units, hundreds, or thousands of clients? You need to set up an appropriate process for how you provide the service so that you can maintain the desired quality and profitability of the service and still be able to scale it for the target number of clients. Along with this goes the way you communicate and sell the service.