{"id":919,"date":"2020-05-24T16:23:26","date_gmt":"2020-05-24T15:23:26","guid":{"rendered":"https:\/\/codify.in\/?post_type=encyclopedia&#038;p=919"},"modified":"2024-10-16T10:41:10","modified_gmt":"2024-10-16T09:41:10","slug":"product-market-fit","status":"publish","type":"encyclopedia","link":"https:\/\/codify.in\/de\/glossary\/product-market-fit\/","title":{"rendered":"Product-Market Fit"},"content":{"rendered":"<p>In a transition phase up to product-market fit (PMF) most startups do not yet have a sustainable <a href=\"https:\/\/codify.in\/de\/glossary\/business-model\/\" target=\"_blank\" title=\"A narrative of how a business works and makes money: it describes how it creates and delivers value to its customers at an appropriate cost and how it captures its share of value in turn.\" class=\"encyclopedia\">business model<\/a>. Product-market fit therefore usually gets tested with a series of experiments that fake a background <a href=\"https:\/\/codify.in\/de\/glossary\/operating-model\/\" target=\"_blank\" title=\"An abstraction and visualization of how an organization delivers value to its customers or beneficiaries and how it runs itself.\" class=\"encyclopedia\">operating model<\/a> which does not yet exist. A popular way of doing so is building a series of experiments up to a <a href=\"https:\/\/experiments.menu\/concierge\">Concierge MVP<\/a> and running a &lsquo;<a href=\"https:\/\/www.cleverism.com\/product-market-fit-sean-ellis-test\/\">Sean Ellis Test<\/a>&rsquo;. Once enough learning and evidence is gathered that the value proposition addresses not only desirability but also the first viability criteria, a team can move on to validate whether their solution can really be delivered in a profitable manner &mdash; in other words, if the <a href=\"https:\/\/codify.in\/de\/glossary\/startup\/\" target=\"_blank\" title=\"A startup is a temporary organization used to search &#8232;for a repeatable and scalable business model. &mdash; Steve Blank\" class=\"encyclopedia\">startup<\/a> has also reached &lsquo;<a href=\"https:\/\/codify.in\/de\/glossary\/business-model-fit\/\" target=\"_blank\" title=\"The inflection a startup reaches when it has gathered enough evidence to demonstrate that it is able to deliver its value proposition with an optimal profit, based on a scalable business model.\" class=\"encyclopedia\">business model fit<\/a>&rsquo;.<\/p>\n\n\n\n<p>One small word of caution: what often happens is that startups extensively test their MVP(s) with early adopters and visionary users but not enough with mainstream customers <span class=\"zp-InText-zp-ID--2420821-DXVZTHYM--wp919 zp-InText-Citation loading\" rel=\"{ 'pages': 'np', 'items': '{2420821:DXVZTHYM}', 'format': '(%a%, %d%, %p%)', 'brackets': '', 'etal': '', 'separator': '', 'and': '' }\"><\/span>. This might lead to what Frank Mattes &amp; Ralph-Christian Ohr <span class=\"zp-InText-zp-ID--2420821-DTTNJQVF--wp919 zp-InText-Citation loading\" rel=\"{ 'pages': 'np', 'items': '{2420821:DTTNJQVF}', 'format': '(%d%, %p%)', 'brackets': '', 'etal': '', 'separator': '', 'and': '' }\"><\/span> call &lsquo;product-pioneer fit&rsquo;, a false positive for PMF if you will.<\/p>","protected":false},"excerpt":{"rendered":"<p>Product-market fit means: you have collected evidence that your solution solves your customers&#8216; problem(s) in a way that they prefer over current alternative solutions; you have proof that they are willing to pay for it; and your service demonstrably gains its first traction in the market.<\/p>\n","protected":false},"author":2,"featured_media":0,"template":"","encyclopedia-category":[134,135],"encyclopedia-tag":[259,262,263,261],"coauthors":[142],"class_list":["post-919","encyclopedia","type-encyclopedia","status-publish","hentry","encyclopedia-category-innovation","encyclopedia-category-lean-startup","encyclopedia-tag-business-model-fit","encyclopedia-tag-problem-solution-fit","encyclopedia-tag-sean-ellis-test","encyclopedia-tag-strategy-fit"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia\/919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia"}],"about":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/types\/encyclopedia"}],"author":[{"embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/users\/2"}],"wp:attachment":[{"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/media?parent=919"}],"wp:term":[{"taxonomy":"encyclopedia-category","embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia-category?post=919"},{"taxonomy":"encyclopedia-tag","embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/encyclopedia-tag?post=919"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/codify.in\/de\/wp-json\/wp\/v2\/coauthors?post=919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}