Expressed opinions Entrepreneur Contributors own.
When Brit Morin was 25, she left Google to start Brit + Co, a lifestyle and education company aimed at helping women build creative confidence. Now – 10 years later, with $ 50 million in funding and 1.2 billion pageviews – Marin’s passion is empowering more women to jump into entrepreneurship. He is a managing partner at VC Fund Offline Ventures, host of the iHeartRadio podcast Teach me something newCreator of Selfmade, a 10-week start-your-own-business course for female founders, and most recently – Entrepreneur Advice columnist. Find her here with answers to the most personal and pressing questions of women entrepreneurs.
Have a question for Brit? Email this to de[email protected], and he’ll answer it in an upcoming column!
I am an early stage founder. How do I know if my product-market is compatible with my new business?
This is a good question and a fundamental challenge that all entrepreneurs need to address, especially those who are raising venture capital.
As you build your next big thing, there are a few key indicators that you have achieved product-market relevance:
Every month you have a user base or customer base and a steady increase in revenue.
Your product is being used in a way you never expected.
Your customers are promoting your product to their friends and colleagues.
You are able to scale your business quickly without compromising on quality or customer satisfaction.
You have a high retention rate, and those who use your product tend to use it and not churn.
You have a lot of inbound leads, and people want to buy your product, but you have to go out and find them.
Your business is profitable or profitable.
If you see most (or all) of these indicators, congratulations! You probably have product-market fit. Remember, though, it’s an ongoing journey, and you may not be able to hit all of these criteria right now. But if you see growth and engagement consistent with your product, it is a good sign that you are on the right track.
If you are not sure if you fit the product-market, keep repeating and testing until you find a formula that works. And if in doubt, ask your customers! At Selfmade, my accelerator program for female founders, we dispel this notion through an intensive study on the user.
As you go through this process on your own, be sure to trust both your gut and that data. When you get product-market fit, things will not necessarily be easy, but it is very refreshing. I’ve personally gone through this process myself with Brit + Co, Selfmade and BFF, and I’m evaluating the effectiveness of businesses that invest in offline ventures. At the end of the day, it’s about creating something that users want and need. As soon as you follow the perfect intersection, post me about your adventure to find the perfect fit for you and your business at @brit!