5 Key Activities in Validating Product-Market Fit & What to Avoid

Validating product-market fit is the most important thing for startups, transitioning from uncertainty "crawling in the dark" to scalable growth, aka "now I truly understand why customers buy." However, many founders get stuck (like me 10 years ago) in what is often called the pre-product market fit "pain cave," a frustrating and confusing period. Focusing on key activities that help achieve PMF efficiently and avoid the lost period of "pain cave."

First, we must understand that the "Pain Cave," described by Rob Snyder (Fellow @ Harvard Innovation Labs), is a challenging period in which startups are "stuck" before finding Product Market Fit. 

What is the Product-Market Fit "pain cave"?

We build things people don't want. We overcomplicate the product and solution. We focus on things that don't matter and get us distracted. 

The pain cave consists of:

• Uncertainty: Not knowing what is working and what isn't. You're constantly questioning your approach and wondering if you're on the right track.

• Doubt and inadequacy: Doubting yourself and your abilities. You can't help but compare your progress to others, which often leads to feelings of inadequacy.

• Overwhelmed: Trying to solve a million startup things at once (e.g., sales, product, blogging, LinkedIn, vision, mission, culture, office, hiring). It feels like you're juggling too many balls in the air.

• Overcomplicating things: Creating unnecessary complexity because they would be more cool and make sense in a big picture - than trying to simplify things into one element that works

• Feeling like pushing a boulder up a hill: Trying to "force" the demand and being "innovative" instead of finding and harnessing existing demand.

• Consisting researching, hoping to find some secrets: Constantly reading TechCrunch, Slack, and newsletters or emailing VCs and talking to non-customers, only to find that talking to potential customers is all that truly matters 

• Misaligned Expectation: Thinking results will come quickly, in days or weeks, but realizing it takes months or even years. This mismatch can lead to disappointment and frustration.

What are the Key Activities in Validating Product-Market Fit?

To escape the "pain cave" and validate product-market fit, focus on these key activities:

1. Find Demand: Identify a market that creates a "pull" rather than trying to push a product onto the market. Demand is talking to prospects and seeing if they have the eagerness* to solve this problem. It's what pulls customers towards your product.

2. Reduce Complexity: Simplify the solution. The more complex the product, the more anxiety it creates for customers and your team.

3. Sell to One Customer at a Time: Winning one customer at a time builds momentum and helps refine your product and sales pitch. 

4. Build a Case Study: Start with one real customer and build a case study around how the product helps achieve the customers' goals. Highlight the specific pain points and the awesome results achieved.

5. Iterate and Refine: Use feedback from early customers to refine the product and sales approach. It's an iterative process to make sure the product offering meets genuine demand. It sets the foundation to jumpstart scalable growth.

My Experience with Struggling Product Market Fit

I recall my experience as cofounder of a content marketing SaaS startup in 2014-2016. We secured funding before we had enough signals, which led to hiring a team and having a runway. As time passed, doubt crept in. We felt overwhelmed by the desire to try many things—A/B testing, adding new product features, and targeting different personas. I was the technical cofounder, pushing for more features in our architecture, but we overcomplicated our product instead of focusing on our unique value proposition. Eventually, we ran out of time.

From that experience, I learned the key activities in validating product market fit. Now, I'm focused on finding demand and reducing complexity. Focus on demand rather than supply by identifying a market that creates a "pull." Reducing complexity is key; the more complex something is, the more anxiety it creates for customers and everyone involved. Winning one customer at a time is what builds momentum. And continue to invest into these objective key results and leading key indicators.

My Next Steps in Validating Product Market Fit

1. Find Demand: Focus on identifying a market that has a "pull" and an eagerness 

2. Reduce Complexity: Simplify the product, the solution, and the pitch would reduce anxiety

3. Sell to One Customer at a Time: Build momentum by winning one customer at a time.

Focusing on these key activities, startups can efficiently navigate into product market fit and avoid the pitfalls of the "pain cave." 

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I am Gary Yau Chan. 3x Head of Growth. Product Growth specialist. 26x hackathon winner. I write about #PLG and #BuildInPublic. Please follow me on LinkedIn, or read about what you can hire me for on my Notion page.