Go to market validation stage
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Valida&on Stage GoToMarket: ProductMarket Fit
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This presentation is from a talk Roni and I gave to start-ups at a Grant Thornton event last week. This presentation focuses on the crucial point in every start-up’s journey where the goal is to validate product-market fit. This is an essential part of every start-up’s Go-To-Market strategy, and without completing this process a start-up cannot scale. Product-market fit is defined as a point in a start-up life when there’s a product that is at least sell-able, and ideally a “must have” for its market.
Transcript of Go to market validation stage
Valida&on Stage
Go-‐To-‐Market: Product-‐Market Fit
Start-up life has two parts: before product-market fit, and after. As a founder, you need to do anything in your power to get to product-market fit.
Marc Andreesen “”
Go-‐To-‐Market and your product lifecycle
Discovery
Valida5on
Scale
Sustain
Conversa&on
Time
Growth
What is Product-‐Market Fit?
A point in a start-up life when there’s a product that is at the least sell-able, and ideally a “must have” for its market.
Minimum Viable Product
In order to verify Product-Market Fit, we must work with the core of the product – the most essential product component (MVP).
Now a bit about need, value and value proposi&on….
Need
To have fun, to party Value Good-‐quality, affordable beer
Value proposi5on Our beer will make you scream out of happiness.
REAL
REAL
MARKETING
You need to do anything in your power to get to product-market fit…including changing out people, rewriting your product, telling customers no when you don’t want to, telling customers yes when you don’t want to.
Marc Andreesen “”
Market-‐Product
Market: The Constant
Product: The Variable
Total available market
Total served market Target
market
The Market
Your market poten&al
Market you can reach with your marke&ng channels
Ini&al poten&al buyers
Mobile Adver&sing $25 Billion in 2016 (1)
Mobile Video Adver&sing
$2.5 billion in 2016 (2)
MobileWeb Video
Adver&sing
Example 1: Market descrip&on for investors
IT Infrastructure
Cloud
PaaS IaaS
Line of Business
On-‐Line
eComm SMB
SaaS
Small Businesses/USA…
eCommerce / Cloud / SaaS….
Composite eCommerce……….
No Internal IT…………………….. 30%
75%
60%
2,200,000 Businesses
Ini&al Targeted Market Size:….. 300,000 Businesses (Annual rev. $360 million)
5-‐99 employees
Market Segments
Example 2: Market descrip&on for ini&al Go-‐To-‐Market
Customer Personas
Lori
Direct customer. Super small-‐small business
Beth Jonathan Roman Jennifer
Direct customer. Small to medium business
Direct customer. Brand community management.
Mini agency. Small businesses.
Agency. Big brands.
Example 3: Diving deeper – market descrip&on through customer personas
38 years old. Lives in Kingston, Rhode Island, with her husband and two dogs. Educa5on: University of New Hampshire, Bachelor degree, Social Sciences. Business: Owns and operates Kingston’s biggest Pilates studio. Salary -‐ $75,000. Current business goal: Rent addi&onal space on the top floor. For this she needs to get 50 more yearly memberships. Technology: Uses her smartphone for everything, from personal to business. Just bought an iPad.
Beth
Social Media: Facebook and Instagram junkie, for personal and business Adver5sing/marke5ng: Budget$2,000 a month. Has a freelancer who is taking care of SEO, PR, and Google Adwords. Social Media she is doing herself but considering outsourcing for lack of &me. What pain point PRODUCTX would solve: Cost-‐effec&ve, easy-‐to-‐manage marke&ng and adver&sing channel. How would she hear about PRODUCTX: Ambassador program. Some SMB blog or newsleler (PR). From her marke&ng freelancer.
Product-‐Market Fit &ps Always ask yourself – are yo
u solving a
real problem?
Pick users and turn them into partners:
– Get constant feedback
– Prepare them for changes
– Make them feel part of the process
Measure value constantly
Measure usability
Resist churn – understand why they
leave and get them back at any cost
Don’t confuse trac&on with Product-‐
Market fit
Be ready to scratch Plan A
How do you know when you’re done?
You just know it.
Thank you and good luck!
For more informa&on: www. Forabilis.com
