What is Product-Market Fit?

Product market-fit is a term you will hear a lot in the startup world. It's become a buzzword, but it represents one of the most crucial challenges a startup faces. 

Another term you hear a lot is problem-solution fit. These two terms are sometimes used interchangeably. Both refer to your product meeting the needs of a consumer. But product-solution fit refers to your product solving a specific need for a customer. Product-market fit on the other hand refers to your product meeting the needs of an entire market. The most significant differences are that some customer needs are not widely felt, and some solutions are not superior enough to win the market they serve. 

A startup can't truly scale until it finds product-market fit, even if it has a great product that some customers love. If it can't win market share in a large enough market, its growth is capped. It's not unusual for startups to spend years searching for product-market fit even after generating revenue.

So how do you know if you found product-market fit? Lenny Rachitsky is a writer and podcaster in the startup world. He does a great job breaking down how some of the top investors and startup leaders define product-market fit. Click here to check out his article.

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