Product/market fit is a crucial step towards building a successful business model, but it’s often missed out by entrepreneurs eager to get their product or service out into the world. It all comes down to testing the assumptions you’ve made about your potential customers to see whether there is a viable market for your business. Watch the first video to understand a little more about product/market fit and how you can avoid some of the common pitfalls that many entrepreneurs fall into.
We’ve already seen that customers are central to a good product/market fit and a successful business model. This chapter focuses on identifying your key customer groups to help you better understand the reachable and total market opportunity for your business. If you already have customers, use this time to reflect on how much you know about them and whether you still need to test or explore any aspects further. Don’t worry if you don’t know exactly who your customers are at this stage – this will form part of the testing and identifying a good product market fit.
In the last chapter of this module, we’re going to look at the customer groups you’ve already identified and get a better understanding of their behaviours and motivations by putting together a customer persona for each segment. Throughout this module, continue to use the workbook, where you’ll find customer persona templates and space to write the key actions you want to apply to your business.