What's product-market fit?

Product-market fit is the alignment between a product's value proposition and the unmet needs of its target customers. It occurs when a product effectively satisfies a strong market demand, leading to enthusiastic adoption and sustainable growth. Key aspects of product-market fit include:

  1. Customer Satisfaction: Users eagerly buy, use, and recommend the product.

  2. Market Demand: The product addresses a significant, underserved need in the market.

  3. Sustainable Growth: Customer acquisition and revenue increase organically.

  4. Problem-Solution Alignment: The product effectively solves a specific problem for its target audience.

  5. Scalability: The product has potential for expansion within its market or adjacent markets.

Achieving product-market fit is critical for startup success, as it validates the business model and creates opportunities for growth. It's often considered a prerequisite for scaling operations and attracting significant investment.

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