The main factor that determines the success or failure of a startup is product-market fit (PMF). A startup can be said to have PMF when their product can be the right solution for the chosen target market.
The achievement of PMF is a continuous process, with the aim that users can use startup products as a necessity and necessity.
“Without reaching the PMF stage, startups will most likely find it difficult to continue their operations,” said Impactto in a written statement, Saturday (2/7/2022).
According to 2019 Startup Genome data, 9 out of 10 startups in the world fail to make a profit and eventually go bankrupt. The majority of startup companies (70 percent) are stuck at the age of ten.
As many as 50 percent fail in the fifth year, 30 percent fail in the second year, and 10 percent disband in the first year. The main reason for this failure (34 percent) is not achieving product-market fit.
To survive long, startups are challenged to not only understand and identify existing problems, but can design solutions to problems into effective features or products/services.
PMF is often a challenge in early-stage startups, because many startup founders need practical knowledge in understanding real problems and building targeted features.