Finding Product-Market Fit for SaaS Startups
- Joeri Pansaerts
- Oct 1, 2023
- 2 min read
Updated: Oct 3, 2023
In the early stages of my journey as a SaaS founder, I realized that there's one thing that truly matters: product-market fit (PMF). It's the magical moment when you know that people genuinely desire what you're offering. However, PMF can be elusive. Many SaaS companies perish at this stage, having spent months building a product that nobody wants.
In this blog post, I'd like to share the three principles I've learned about finding product-market fit for SaaS startups, which can save you months of building the wrong product.
1. Ask People to Buy Early
The first principle is to ask people to buy as early as possible. It's a mistake I've seen many founders, including myself, make. We interview numerous potential users, and they all express interest. But when it comes to actually selling the product, we hit a wall. The truth is, when you ask people if they'd be interested in a hypothetical product, they might just be trying to be polite. It's only when you ask them to commit financially that you get a true sense of their interest. By asking people to buy early, you can validate your product idea and ensure you're not wasting time on something the market doesn't want.
2. Be Intentional About Your Target Markets
The second principle is to be intentional about your target markets. It's essential to understand who you're selling to and what problems you're solving for them. This doesn't just mean creating an ideal customer profile but truly understanding the broader markets that might benefit from your product. By being clear about your target markets, you can tailor your product development and marketing strategies to better serve them.
3. Measure Your Progress
The third principle is to measure your progress as you test and iterate. As founders, we often get caught up in the day-to-day and forget about the bigger picture. By setting aside time to review metrics and track our experiments, we can gain a clearer understanding of what's working and what's not. For instance, I once realized that one of our landing pages had a 70% conversion rate, while another only had 16%. Without regularly reviewing our metrics, I might have missed this crucial insight.
Finding product-market fit is a challenging but crucial journey for any SaaS startup. By asking people to buy early, being intentional about target markets, and measuring progress, you can increase your chances of success. Remember, it's not just about building a great product; it's about ensuring that the market wants and values what you've created.
