Expounding on Product Market Fit

Yesterday, I posted a video of what it means to have product-market fit.  I love that video and the concepts broached in it.

• Literally, “the market decides”.  So tough for an entrepreneur with an engineering or accounting background to understand.  Those types of personalities often want to have control and dictate to the market.  Nope, the market decides.
• When you have product-market fit, the customer will pull the product out of your hands their desire for it is so intense.
• You cannot sit on your ass and program all day hoping to find product-market fit. You have to go out and press the flesh.  Put some holes in your shoe leather and actually ask pointed questions of customers, listen, question again, listen, question again.  This is called uncovering objections and needs.  Take that information back to the engineering team, build it and then go sell it.  If you question the right way, listen intently without your personal confirmation bias, you will deliver what the customer wants and delight them.
• Once you deliver and delight your customer, keep asking them questions and listening.

I thought this point was very interesting.  Going from $0-$1MM in top-line revenue is extremely difficult.  It will wear on you psychologically, emotionally, and physically.  Make sure you get outside and go for a walk unplugged.  If you can’t do that, do something physcial inside-unplugged.

Going from $1MM to $10MM  isn’t really easy either.  But, if you get to that $10MM top-line number, odds are good that you have found the mother lode and you will get to $100MM in revenue.  The trip from $10-$100 is easier than the trip from $0-$1.

In our business of seed investing, we always target getting to $100k per month in recurring revenue. The reality is that is just going up the first little foothill.  The real climb begins after that.

This is why startups are so tough.  It’s also why I respect the hell out of founders.  They take risk, work without a rope or net.