B2B MVP Validation via Sales-Market Fit
Froggmen Consulting will get you product insights at a speed that you are incapable of hiring for! Your target customers will convey if your product has value or not.
What is Sales-Market Fit?
Sales-market fit refers to the alignment between a company's product or service and the needs and preferences of its target market. It is a critical factor in the success of any business because it determines the ability of the company to sell its product or service effectively and sustainably.
Most start-ups have a narrower view when it comes to product-market fit. They often forget that most of the product validation happens on the sales side of things. You will get more info about your product, its target market, target businesses, competitors, and much more when the sales process starts.
Most start-ups have a narrower view when it comes to product-market fit. They often forget that most of the product validation happens on the sales side of things. You will get more info about your product, its target market, target businesses, competitors, and much more when the sales process starts. And that’s we at Froggmen Consulting believe where sales-market fit comes in.
There are 3 steps to this:-
Step1
Getting to "Yes": This involves pitching to a business user and gauging their response. If they show excitement and agree that they need the product or service, SMF1 is unlocked.
Step2
Getting to the Purchase Order (PO): Once SMF1 is achieved, the next step is navigating the complex process of getting the PO. This involves dealing with procurement, security, IT, compliance, and other internal stakeholders. A product that is "Enterprise-ready" is necessary to navigate this process and achieve SMF2.
Step3
Once the PO is secured and the ARR is booked, the next step is onboarding the customer and delivering the product. This needs to be done as easily and quickly as possible to achieve SMF3 and recognize revenue.
Achieving real Sales-Market-Fit is challenging and requires an end-to-end approach. Large companies have dedicated teams and processes in place, often referred to as Quote-2-Cash (Q2C). The focus is on generating revenue and cash, not just selling the product or service.
Building a product for a market that doesn’t exist?
67% of startups fail because they can’t get sales. What’s the point of striving hard in building a product, if there is no market for it in the first place? Here are a couple of reasons why Froggmen believes that validating your Sales-market fit is crucial for your entrepreneurial success.
Market
Lets you understand if the market and its business that are your target audience actually need your product.
MVP
Understanding which all features are necessary for your target audience to get the best value out of your product.
Compete
Understanding those competitors who might give you a run for your money.
Sellability
Whether your target audience be ready to pay for your product is a whole other question.
Seamless
If your target businesses are medium & enterprise-level ones, then the challenges of integrating your product would be there if you don't have a streamlined process.
GTM
Understanding more about your product via your target businesses will get you more clarity with respect to what your go-to-market plan of action should be which includes marketing and sales methodologies as well.
Still confused?
Still, confused as to why your product should be validated with respect to sales-market fit? Have a chat with our consultants!
