Chapter Chapter 3 3 Stage 3: Product/Market FitStage 3: Product/Market Fit If yourIf yourproduct product scores scores high highon the on four the fouror five or pointsfive points in this in articlthis article, e, then thenin all in lik allelihood, likelihood, you haveyou have achieved achieved product/mar product/market fit.ket As fit. w Ase’ve we’ve discusseddiscussed abov above, thise, meansthis means your yourproduct product is solving is solving an important an important recurringrecurring pain painpoint point for five for orfive six or customers six customers who whodidn ’tdid previously n’t previously knowknow you, andyou, who and whoare spending are spending real money real money to use to it. use Annual it. Annual contract contract valuesvalues are meaningful are meaningful for the for type of the type of customer you’re customer you’re targeting, which targeting, which breakbreas downks down this way:this way:at least at least$100 $10,0000 ,000for enterprise for enterprise customers, customers, at at least least$25,000 $25,000 for midmar for midmarket customers,ket customers, and atand least at least$10,000 $10 for,000 small for small business customers.business customers. At thisAt stagthis estag, yoeu’, reyo alsou’re realsoad yre toad yin tove sitn vein sgo-to-mt in go-to-marketa effortrket efforts to s to accelerateaccelerate grow groth. wCthom. mCounmimcatiounincatio is funn isd amfunednamtale tont theal to e thentire e nprotirec epross. cess. At NorweAt Norwest Venstt uVreen Ptuarertn Peras,rt nweres,’ve w foe’veund fo thundat itth’sa ct ritiit’sca clriti forca el nforterpri enterprise se cloudclo coumd paniescompanies to st atort stbyart c rebya tingcrea ating cu sato cmuserto amdervi saorydvi sbooryar dbo anard d and involvinginvolving the b theoard b oina rdthe in d theevelop developmentm ofe netac ofh ene acwh pronewduc prot ducor prot orduc prot duct iteratioiteration. Testn. aTnestd obtanda iobtn feedain bacfeedk bacfromk frothems ethe easrlye ecuarlysto cumstoersm aser thes asy they use theuse pro thed uproct danucdt teansdt oteust tyo ouutr yodemour dsemo in res ainl tiremael .ti Dmoe a. Dweeklyo a weekly gut gut checkche toc evk toalu evatealu hoatew hosentiw msentientm ise ntret insdi trengn.di Sntartg. Ssmatartll sma andll wandork w oorkut out the kintheks kinbeforeks before scalin scgali up tong u yop tour yooverur aoverll cusallto cusmerto basmere bas. e. MostMost succes successful sstartful usptarts areup sfou arend fouednd bye dso bmy eosonmeeo wnhoe wis hoobs ise ssobsed essed with withcreati cnreatig an gb ettera b ettercusto cusmerto mexerperie experience, nwhoce, whounder unstderandsst andsthe the industryindu’sstry pain’s ppoiainn tpois andnts da andily dachilyalle cnhgealles ninsgeides ins andide o andut. Iof yout.u If c yoanu t acanp tap into theinto the prob lemprobs thlemats a threa tdrivi aren drivig yonug yor cusutor cmuserstom crersazy c arand szy aolve thend solve them, m, the marthek maret isk ripe foret is ripe for your yotakiunr tga.king. At theAt begithe nnbegiingnn ofin gthis of cthishapte chapter, I mr,e nI tiomennetiod ntheed rithesks riassskoc s assiateod ciated with withnot properly not properly prep aprepringa forrin ga fortes ta, itenterviest, interview, or wm, eetior mneetig. Itn’sg c.riti It’sca cllritiy cally importimportant forant startup for startups to tas ktoe thitakse c thionsc eptcon ctoept he toart he andart aandpply a pplythe rigo ther rigo- r - ous asousses assmesesnstme ountlinet oudtline aboved above to deter to determinem winhethere whether or not or there not there is a is a goodgoo proddu proct/marduct/market fitk.et fit. You canYou ma canke ma ank uen ansuit unabsuitle proableduc prot ducfit thet fit ma therk maet, burkett ,yo buut c yoanu n cevean nr ever makema theke m theark meta fitrk etan fit u nsanu uitnsabuleit proableduc prot.duc Thit.s isThi wshy is lwargehy l acrgeom pcaoniemps anies spendspe mnilliod mnsillio ofn sR &ofD Rd&ollarD dsollar on s eoxtenn esxiveten smaiver kmaet raknaetly asnais, lyussis,in g using methodologiemethodologies rangis rnagngi fromng fromsurvey susrvey ands oandnlin oen anlinalytie ancsalyti placstfor plms,atfor tms,o to analyst analyst meetimneetigs andngs fo andcus fogrocus upgros. ups. 4646 4646
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