Product-market fit

Also called PMF

The point at which the market pulls the product out of you rather than you pushing it. Recognisable more than it is measurable.

What it means

Product-market fit is the state where a product satisfies a strong market demand: customers buy without heavy persuasion, they stay, and they tell others.

Before it, growth requires constant force. After it, the constraint moves to delivery.

Why it matters

Scaling before it is the most common expensive mistake in early-stage businesses. Spending heavily on acquisition when churn is high fills a leaking bucket faster.

The order matters: fit first, then growth.

What it looks like in practice

The signals: retention flattens rather than declining to zero, customers refer others unprompted, and the sales conversation gets shorter.

The usual survey question — how disappointed would you be if this no longer existed — is a reasonable proxy when a meaningful share say "very".

If you do not have it, narrowing the segment is more often the answer than adding features.

What to watch out for

Mistaking early enthusiasm from friendly customers for fit. The test is strangers, paying, staying.

Assuming fit in one segment transfers to another. It frequently does not.

Where to get proper advice

Your own retention and referral data. This is not something an adviser can assess from outside.