Six Questions for Conquering Product-Fit Market

Many startups tend to take a little time to celebrate their Series A round. The same is true when startups have found product-market fit. Of course, it’d be foolish not to enjoy your success a little bit. However, it’s important not to celebrate too much or for too long because the next phase of the startup journey has already begun.

After product-market fit, the next step is to conquer your product-fit market. This means becoming the dominant figure in whatever market you found initial success. Too many founders believe this is the time to start expanding into new markets. But you can’t do that until after you’ve dominated that first market.

Naturally, founders have a lot of questions about conquering the product-fit market. Why is it so important? What is the timeline for accomplishing it? What should the targets be? Who is responsible for selling during this period? With so many questions to answer, I have put together a video that aims to answer all of them. As always, feel free to reach out if you have additional questions or need more guidance.

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For a startup that has achieved its Series A, the first - and arguably most important - step is conquering the product-fit market. While you may have found product-market fit, you must dominate that particular market before you start to expand into other areas. It’s hard not to start thinking big after finding product-market fit. But remember to take things one step at a time.

Of course, there are steps to take and questions that must be answered in order to conquer the product-fit market. In fact, there is a classic who, what, when, where, why, and how to conquer the product-fit market. Let’s start trying to find answers to these questions so that startups who have reached their Series A can start to dominate their product-fit market

Why? Distribution Race Has Started

Why is conquering the product-fit market so important? It’s because the distribution race begins as soon as you find product-market-fit. Startups must master distribution and stay ahead of competitors and incumbents who will start to replicate their product as soon as they find product-market fit.

When? Hurry Before Competition Catches Up

When should your startup conquer the product-fit market? Not to sound obvious, but as soon as possible. Over time, competitors are bound to catch up with you, taking away the advantage you have over them. This creates a sense of urgency to conquer and secure your product-fit market before incumbents catch up with you.

Where? Serviceable Obtainable Market Only

Where will you conquer your product-fit market? Surprisingly, only in your serviceable obtainable market. Believe it or not, finding product-market fit is not the time to start expanding into new segments and products. The focus should be on the serviceable obtainable market. Startups need to show that they can capture a large share of a small market before trying to expand.

What? T2D3 Growth

What are the targets for your startup after achieving product-market fit and your Series A? If we assume an ARR of $1 million after product-market fit, the goal is to triple that number in each of the next two years and then double in each of the next three years. This is also known as T2D3 growth. Keep in mind these targets are intentionally aggressive. But this is also why startups set big goals.

How? Ideal Customers - Positioning - Channel

How is your startup supposed to achieve such audacious goals after finding product-market fit? You have to know where to fight for the market share and where not to fight. This means having a clear picture of your ideal customer, how you’ll position your product to fulfill that customer’s need, and what channel will be most effective in reaching your ideal customer. Meeting your goals for growth will require your startup to be crystal clear in each of these three areas.

Who? Founders Sell Until Playbook Replicable

Who is leading the way in conquering the product-fit market? Obviously, it’ll be the founder. The founder will be responsible for selling to customers until the sales process can be replicated and a playbook written. Salespeople will then learn from the founder, making joint sales together, until the founder is able to phase out of the sales process. However, this only happens when there is a trusted and reliable sales playbook in place.

Difference Between B2C, B2B, and B2E

Are these questions any different for startups that are B2C, B2B, or B2E? No, the structure remains the same. Obviously, the answers to these questions will be different, but the questions will remain the same throughout startups in every industry.

Reach Out for Further Help

If you have questions or your startup needs further help conquering your product-market fit, get in touch with the Midstage Institute. Our experienced coaches and facilitators can guide you during your midstage journey and put you on the path to unicorn status.