The Search for Product-Market Fit
•
5 gefällt mir•13,280 views
How to achieve product-market fit by running the experiments that matter most and building the right organization to run those experiments effectively.
Empfohlen
Weitere ähnliche Inhalte
Was ist angesagt?
Was ist angesagt? (20)
Ähnlich wie The Search for Product-Market Fit
Ähnlich wie The Search for Product-Market Fit (20)
Mehr von Jeffrey Bussgang
Mehr von Jeffrey Bussgang (20)
Kürzlich hochgeladen
Kürzlich hochgeladen (20)
The Search for Product-Market Fit
- 1. CONFIDENTIAL PRESENTATION | PAGE1 The Search for Product- Market Fit Jeff Bussgang General Partner, Flybridge Capital Senior Lecturer, Harvard Business School May 22, 2019
- 2. CONFIDENTIAL PRESENTATION | PAGE2 Concepts • Startups as experimentation machines • Deconstruct “Product Market Fit” (PMF), plus: – Lean Start-Up Theory – Customer Development Process • Help you devise your approach to achieving PMF and avoid wasting a lot of money • The metrics that matter most
- 3. CONFIDENTIAL PRESENTATION | PAGE3 Taking A Page From Experimental Design
- 4. CONFIDENTIAL PRESENTATION | PAGE4 Startup = Experimentation Machine CVP Experiments GTM Experiments BM/CF Experiments Which Experiments Should I Run? CVP = Consumer Value Proposition GTM = Go To Market BM/CF = Business Model / Cash Flow Source: HBS Launching Tech Ventures Course
- 5. CONFIDENTIAL PRESENTATION | PAGE5 Startup = Experimentation Machine CVP Experiments GTM Experiments BM/CF Experiments What Organization Should I Build? GrowthProduct Sales Biz Dev
- 6. CONFIDENTIAL PRESENTATION | PAGE6 CVP Experiments GTM Experiments BM/CF Experiments Product Machine Growth Machine Business Machine What Machine Should I Focus My (Very) Scare Resources On Building? Startup = Experimentation Machine
- 7. CONFIDENTIAL PRESENTATION | PAGE7 Experiments Drill Down CVP Experiments GTM Experiments BM/CF Experiments WHO HYPOS WHAT HYPOS HOW HYPOS SALES MODEL HYPOS CHANNEL CHOICE HYPOS PARTNER HYPOS GROWTH HYPOS MONETIZATION HYPOS PRICING HYPOS CVP = Consumer Value Proposition GTM = Go To Market BM = Business Model Source: HBS Launching Tech Ventures Course
- 8. CONFIDENTIAL PRESENTATION | PAGE8 Where are You? Before Product-Market Fit: Search & Validation • Lean startup approach • Hunch-driven hypotheses • Minimum viable product (MVP) • Product-centric culture; informal roles • Customer development process • Pivoting • Bootstrapping/pre-seed • Small, founding team • Founder selling - early adopters • Early in sales learning curve After Product-Market Fit: Scaling & Optimization • Building a robust, feature-rich product • Crossing the chasm • Metrics, analytics, funnels • Designing for virality & scalability • Scaling the team; more formal roles • Challenges with corporate partnerships • Building a brand • Scaling a sales force
- 9. CONFIDENTIAL PRESENTATION | PAGE9 Lean Startup Principles • No idea survives first customer contact, so get out of the building ASAP to test ideas • Goal: validation of business model hypotheses, based on rigorous experiments and clear metrics • Minimum viable product (MVP): smallest set of features/marketing initiatives that delivers the most validated learning • Rapidly pivot your MVP/business model until you have validation and product-market fit (PMF) • Don’t scale until you have achieved PMF Source: Eric Ries
- 10. CONFIDENTIAL PRESENTATION | PAGE10 “Lessons Learned” Drives Funding Concept Business Plan/Canvas Lessons Learned Series A Do this first instead of fund raising And perhaps even before writing code (or raise seed round to test hypotheses…rigorously) Test Hypotheses Source: Steve Blank
- 11. CONFIDENTIAL PRESENTATION | PAGE11 INBOUND15 Sales team hitting quota Sales cycles short 40% test – if product disappeared Product usage high, growing LTV : CAC > 3 MRR growing > 10% MoM Churn < 30% / year NPS > 20 Criteria for Product Market Fit
- 12. CONFIDENTIAL PRESENTATION | PAGE12 Leading Thinkers/Books/Blogs • Geoffrey Moore: Crossing the Chasm (read this!) • Steve Blank: Customer Development Process (read Four Steps to the Epiphany) • Eric Ries: Lean Startups (read this too!) • Marty Cagan: Silicon Valley Product Group (great book and blog) • Sean Ellis: Hacking Growth (great book)
- 13. CONFIDENTIAL PRESENTATION | PAGE13 The Search for Product- Market Fit Jeff Bussgang General Partner, Flybridge Capital Senior Lecturer, Harvard Business School May 22, 2019