In early-stage startups, the goal used to be finding Product-Market Fit (PMF). Marc Andreessen captured this well, describing it as the foundation for any future growth. Traditionally, PMF came first, with growth efforts considered secondary until the product truly resonated with users; without this, investing in scaling would be premature.
Recently, though, the focus has shifted toward growth and distribution, as Paul Graham discusses. The argument here is that rapid, sustained growth can signal PMF since demand itself can validate the product's appeal.
However, there’s a risk to prioritizing growth as a proxy for PMF too early. Without a strong foundation, rapid growth may lead to poor retention, revealing weak long-term value, especially as a product expands beyond early adopters.
Q: What should early-stage startups focus on?
A: Product-Market Fit (PMF) and growth, but with the right emphasis.
For a startup, achieving early traction with a small, dedicated user base is promising but doesn’t necessarily indicate scalable demand. To truly gauge PMF, it’s essential to push for growth, even through unscalable methods, to test if the user pool is broad enough to support long-term growth. This approach helps confirm whether your product can attract a larger market or if it’s limited to a niche, which may not sustain the business in the long run.
Sources:
https://lnkd.in/gaRABiMm
https://lnkd.in/gp8WhRke
#PMF #growth #startup
