Are you going to launch your startup? Then venture capitalists should have asked you about the product or market fit.
So, what is product-market fit? And why it is a must for any business or startup? What are the approaches to understand the product or market fit?
Product or market fit is how much a product would fulfill solid market demands. So, it’s an examination of whether the product-to-be-propelled.
Also, it can continue in the market, would be profitable and would be fit for building value. The concept by Mark Andreessen who partitions a startup’s life into two phases:-
- Before Product/Market Fit (BPMF)
- After Product/Market Fit (APMF).
Yet, how to quantify the product/market fit? What are the measurements that can break down to check whether a product is an ideal choice for the market?
There are three different ways to test a product before you release it in the market. Minimum Viable Product (MVP), Prototype, and Proof of Concept (POC).
In the later section, we will examine each of the three in detail-what they are. Their masters, situations where they are most appropriate. And will end up the most ideal approach to quantify product/market fit. In this way, how about we begin?
A prototype is a piece of the product design that can empower a business to test a concept or a procedure. It is an intuitive model that comprehends the work process and its ease of use.
A prototype permits visualizing user experience before the product development begins. Because it’s simple but an independent system. Also, it gives an idea of what sort of experience will a user has.
With prototypes, new businesses can discover blunders. And blames that can influence user experience or stream of the application. It, as a rule, incorporates wireframes, mock-ups, design formats, and user streams. Four sorts of prototypes that can have made for the test are:
- Working Prototype
- Visual Prototype
- User Experience Prototype
- Practical Prototype.
A Prototype helps in surveying how consistent a client’s voyage will be with a product. It can quantify the product/market fit for the accompanying reasons:
- It enables the business to comprehend the slacks in a product, even before the development begins.
- User Experience (UX) is one of the prime factors in holding clients. A prototype tests it.
- It is the fastest choice to test a product’s plausibility. Also the adaptability, and acknowledgment with visual impacts.
- A prototype requires less interest as far as endeavors, funds, and time
- It advises about the confinements of a system at the beginning time
2. Proof of Concept (POC)
Proof of Concept, as the name recommends, helps in testing the achievability of the product for down-to-earth usage. It is one of the most innovative approaches to test if the idea, striking in your psyche is operational or not.
For building up a PoC, a little undertaking (with fundamental usefulness) executed. It is generally not demonstrated to the users.
It analyzes if there are advances, platforms, or environments accessible to construct a solution. When a PoC shows the specialized/useful practicality of a task, product development will begin.
Some explanations behind which PoC can consider estimating product/market fit incorporates:
- PoC is a transient procedure to test the achievability and capability of the venture
- That gives a speedy ‘yes’ or ‘no’ to the feasibility of the task
- It uncovers the mistakes, bugs, or blames in the idea/system at the beginning time
- It requires less time to approve in case you’re moving the correct way
- PoC can assist you with finding an elective solution to an issue if the one you’re attempting appears to be unreasonable
3. Minimum Viable Product (MVP)
A Minimum Viable Product is an underlying version of the product designed and created to test the market adequacy of an idea. Furthermore, MVP is the base model of a product having a minimum yet a central feature of the product.
MVP implies one of the mainstream approaches to quantify product/market fit. As it enables the product to arrive at the market, it sees how a product is being seen by the users. What are the blocks in its exhibition? What upgrades should be possible to make the product significant (specialized/UI/UX), and so on? When these components examined, organizations can put resources into product development. Also, offer premium administrations/includes, and expect a profitable rate of profitability.
MVP is the one smartest approach. Also, it helps to estimate product or market fit for the accompanying reasons:
- You can begin little and develop as your crowd/user/clients acknowledge the product.
- Minimum Viable Product lets you enter the market will minimum (money-related) venture.
- This lets you comprehend the slacks of your product and how it improves.
- It causes you to pass judgment if your time, money, and endeavors in a product are worth venture.
- It lets you comprehend the user, target crowd, and their desire from the product.
MVP VS Prototype VS PoC: Which one to Choose?
Among the three approaches shared above to gauge product/market fit, an MVP is the best strategy. It not only lets you test the venture possibility and user experience. Yet also empowers approving a product’s potential by its user itself.
Regardless, the two different strategies. For example, prototype and PoC have their own significance. While they won’t be the best way to deal with measure product/market fit. They enable organizations to survey the suitability of a product at the beginning period. But, whether to make an MVP, Prototype, or PoC relies on the business idea.