Problem: How do startups know when they have product/market fit?
Paul Finch is the co-founder of Growth Studio, a company that helps startups get product/market fit, launch to market, and get funding. While Paul doesn’t believe that there’s a formula to figure out if you have product/ market fit (as a startup), he does believe there are signs. Growth Studio helps startups realize what these signs are and guides them toward the right track.
The Common Mistakes of Startups Concerning Product/Market Fit
Mistake 1: Not knowing about the competition
It is Paul’s experience that, when asked about the competition in their field or market, some startups reply that there are is no competition at all. He finds this worrisome because that can mean a couple of things: (1) that the startup is not humble or that (2) they aren’t curious enough to do the research.
That to me is a killer for a startup because that means that they’re not humble enough to realize that there is competition.
Mistake 2: Know what your value is
Not being able to articulate your business or value.
As a company, you should be able to tell people what kind of value you can give your customers and to society. While some companies can rattle off the shiny products they have to offer, there is often a difference between physical products and value. This distinction is sometimes not realized. Paul equates that to regional variances. While some regions (like the US) put value first, others can sometimes put product first.
Mistake 3: Thinking of customers as objects and not humans
Some startups fail to recognize the customers, users, and clients using their products as humans. It is important to know why people act the way they do. Why do they buy your product? Why are they buying the competition’s product? What things are they looking for? What kind of value can you offer them to make their lives easier or better?
Talking to people and understanding why they like Batch One is really interesting and that’s impacted everything I’ve been doing online.