Product-Market Fit: The validation stage

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This presentation focuses on the crucial point in every start-up's journey where the goal is to validate product-market fit. This is an essential part of every start-up's Go-To-Market strategy, and without completing this process a start-up cannot scale. Product-market fit is defined as a point in a start-up life when there's a product that is at least sell-able, and ideally a "must have" for its market.

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Product-Market Fit: The validation stage

  1. 1. Go-­‐To-­‐Market:   Product-­‐Market  Fit   Valida&on  Stage  
  2. 2. “” Marc Andreesen Start-up life has two parts: before product-market fit, and after. As a founder, you need to do anything in your power to get to product-market fit.
  3. 3. Go-­‐To-­‐Market  and  your  product  lifecycle   Conversa&on   Sustain   Growth   Scale   Valida5on   Discovery   Time  
  4. 4. What  is  Product-­‐Market  Fit?   A point in a start-up life when there’s a product that is at the least sell-able, and ideally a “must have” for its market.
  5. 5. Minimum  Viable  Product   In order to verify Product-Market Fit, we must work with the core of the product – the most essential product component (MVP).
  6. 6. Now  a  bit  about  need,  value  and     value  proposi&on….  
  7. 7. Need     REAL   To  have  fun,  to  party   Value     REAL   Good-­‐quality,  affordable  beer   Value  proposi5on     Our  beer  will  make  you  scream  out  of  happiness.     MARKETING  
  8. 8. “” Marc Andreesen You need to do anything in your power to get to product-market fit…including changing out people, rewriting your product, telling customers no when you don’t want to, telling customers yes when you don’t want to.
  9. 9. Market-­‐Product   Market:  The  Constant     Product:  The  Variable  
  10. 10. The  Market   Total  available     market   Total  served   market   Your  market   poten&al   Market  you  can   reach  with  your   marke&ng  channels   Target   market   Ini&al   poten&al   buyers  
  11. 11. Example  1:     Market  descrip&on  for  investors   Mobile  Adver&sing   $25  Billion  in  2016  (1)    Mobile  Video   Adver&sing   $2.5  billion  in  2016  (2)   MobileWeb    Video     Adver&sing  
  12. 12. Example  2:     Market  descrip&on  for  ini&al  Go-­‐To-­‐Market   Line  of     Business   Small  Businesses/USA…   2,200,000  Businesses   5-­‐99  employees   Market   Segments   On-­‐Line   eComm   SMB   eCommerce  /  Cloud  /  SaaS….  60%   Composite  eCommerce……….  75%   No  Internal  IT……………………..   30%   Ini&al  Targeted  Market  Size:…..   SaaS   IaaS   PaaS   Cloud   IT  Infrastructure   300,000  Businesses  (Annual  rev.  $360  million)  
  13. 13. Example  3:     Diving  deeper  –  market  descrip&on  through   customer  personas   Customer  Personas   Lori   Beth   Direct  customer.   Super  small-­‐small   business   Direct  customer.   Small  to   medium   business   Jonathan   Roman   Jennifer   Direct  customer.   Brand   community   management.   Mini  agency.   Small   businesses.   Agency.     Big  brands.  
  14. 14. Beth   38  years  old.  Lives  in  Kingston,  Rhode   Island,  with  her  husband  and  two  dogs.     Educa5on:  University  of  New   Hampshire,  Bachelor  degree,  Social   Sciences.   Business:  Owns  and  operates  Kingston’s   biggest  Pilates  studio.  Salary  -­‐  $75,000.     Current  business  goal:  Rent  addi&onal   space  on  the  top  floor.  For  this  she  needs   to  get  50  more  yearly  memberships.   Technology:  Uses  her  smartphone  for   everything,  from  personal  to  business.   Just  bought  an  iPad.   Social  Media:  Facebook  and  Instagram  junkie,   for  personal  and  business   Adver5sing/marke5ng:  Budget$2,000  a   month.  Has  a  freelancer  who  is  taking  care  of   SEO,  PR,  and  Google  Adwords.  Social  Media   she  is  doing  herself  but  considering   outsourcing  for  lack  of  &me.   What  pain  point  PRODUCTX  would  solve:   Cost-­‐effec&ve,  easy-­‐to-­‐manage  marke&ng  and   adver&sing  channel.   How  would  she  hear  about  PRODUCTX:   Ambassador  program.  Some  SMB  blog  or   newsleler  (PR).  From  her  marke&ng   freelancer.  
  15. 15. t  & s   arket  Fiu  solvpg  a   Producats-­‐  M rself  –  are  yo in   k you   Always real  problem?   rtners:   nd  turn  them  into  pa   Pick  users  a ack   –  Get  constant  feedb s   pare  them  for  change –  Pre cess   m  feel  part  of  the  pro –  Make  the ntly   Measure  value  consta     Measure  usability   y  they   urn  –  understand  wh y  cost     Resist  ch n nd  get  them  back  at  a leave  a roduct-­‐ nfuse  trac&on  with  P   Don’t  co Market  fit   lan  A   Be  ready  to  scratch  P  
  16. 16. How  do  you  know  when  you’re  done?   You just know it.
  17. 17. Thank  you  and  good  luck!   For  more  informa&on:   www.  Forabilis.com  

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