Product/Market Fit Hypotheses
When we develop a product or are developing a product, for it to be a success, the vision should be stable and the strategy should be refined and iterated over and over again to find product/market fit.
Product/Market fit hypotheses is more important than the business plan. To establish a good business, you need a good #business plan, but to execute that business plan, you need a market where your product fits, so that should be the priority.
Product/Market Fit #Hypotheses
When we develop a product or are developing a product, for it to be a success, the vision should be stable and the strategy should be refined and iterated over and over again to find product/market fit.
Product/Market fit hypotheses is more important than the business plan. To establish a good business, you need a good #business plan, but to execute that business plan, you need a market where your product fits, so that should be the priority.
Product/Market Fit #Hypotheses
- Target Audience
- Problem You’re Solving
- Value Propositions
- Strategic Differentiation
- Competition
- Acquisition Strategy
- Monetisation Strategy
- KPIs (Key Performance Indicators)
Target Audience
You should aim for the broadest definition of the market, the #TAM (Total Addressable Market) should be narrowed down to your most ideal customer, and then should be gradually increased as the product grows.
Problem You’re Solving
These days I’ve seen a numerous example where people are having a product and they are trying to invent the problem for the solution they have.
Find out if your product is a painkiller for the customer or a vitamin ?
Is it a nice to have thing and adds convenience for your customer? Or is it something which fulfills a need for your customer, something which they need to have.
Value Propositions
Don’t think of it as a list of features, the facilities that you’re going to provide for your customers, think of it as a promise which you made to your customer for the value that you will generate for them.
Strategic Differentiation
What makes your product better than others in the industry?
Does it solve any unique problem?
Is it going to make a process 10x better?
Are you going to keep improving it to keep yourself ahead?
What is unique?
Why people should bother to use it?
Competition
Identify the competition, who are the competitors.
Are there any direct competitors, is there an existing market?
Or the market is new, if so, is there any alternative, something which can act as a hindrance for the target user to make the jump?
Acquisition Strategy
What is the strategy? How will you find the customers?
What is the CAC (Customer Acquisition Cost)? Are you going to put targeted ads? If so, how will you do it cost-effectively?
Monetisation Strategy
Every business is about money. How will YOU make MONEY ?
What’s the plan?
How will you monetise? What will be the primary & secondary sources? One-time fee or subscription based?
How are your competitors doing? Will your customer pay and Why?
Key Performance Indicators
It is important to define your product’s KPIs upfront. What are the plans, what are the milestones, ais it no. of users, revenue or profit? How will you measure that you have completed a milestone? What will be the metrics? How will you track the progress and improve?
Thank You
You should aim for the broadest definition of the market, the #TAM (Total Addressable Market) should be narrowed down to your most ideal customer, and then should be gradually increased as the product grows.
Problem You’re Solving
These days I’ve seen a numerous example where people are having a product and they are trying to invent the problem for the solution they have.
Find out if your product is a painkiller for the customer or a vitamin ?
Is it a nice to have thing and adds convenience for your customer? Or is it something which fulfills a need for your customer, something which they need to have.
Value Propositions
Don’t think of it as a list of features, the facilities that you’re going to provide for your customers, think of it as a promise which you made to your customer for the value that you will generate for them.
Strategic Differentiation
What makes your product better than others in the industry?
Does it solve any unique problem?
Is it going to make a process 10x better?
Are you going to keep improving it to keep yourself ahead?
What is unique?
Why people should bother to use it?
Competition
Identify the competition, who are the competitors.
Are there any direct competitors, is there an existing market?
Or the market is new, if so, is there any alternative, something which can act as a hindrance for the target user to make the jump?
Acquisition Strategy
What is the strategy? How will you find the customers?
What is the CAC (Customer Acquisition Cost)? Are you going to put targeted ads? If so, how will you do it cost-effectively?
Monetisation Strategy
Every business is about money. How will YOU make MONEY ?
What’s the plan?
How will you monetise? What will be the primary & secondary sources? One-time fee or subscription based?
How are your competitors doing? Will your customer pay and Why?
Key Performance Indicators
It is important to define your product’s KPIs upfront. What are the plans, what are the milestones, ais it no. of users, revenue or profit? How will you measure that you have completed a milestone? What will be the metrics? How will you track the progress and improve?
Thank You