From product-market fit to personal-market fit
When startup founders (try to) grow an early-stage business, they go through the process of finding “product-market fit.”
The founders come up with an initial idea, build a v1 of the product, and launch to early adopters.
Early adopters provide feedback.
They might not like it. They might want new features. They might find bugs. Or they might want something entirely different.
The founders assess this feedback and then iterate. They build a v2 and re-launch. Or they might pivot to an entirely different business model.
Throughout this process of gathering feedback and then iterating/pivoting, the founders decide what to work on based on the demands of the market—ultimately, what the market is willing to pay for.
What is not taken into account are the founders’ personal interests, passions, or beliefs.
The implicit objective: make money
What’s the point of finding product-market fit?
What is the implicit objective of growing a business this way?
To maximize profit.
To get as many customers as possible to pay you as much as possible.
Why would a startup founder want to devote so much of their time and energy to growing a business this way?
To make money.
To earn their share of the profit.
Now, you might say there are other reasons. The founder is interested in the space. Or, the founder wants to make an impact. They’re mission-driven. They genuinely want to solve a problem, regardless of the commercial outcome.
Those reasons might be true.
However, at some point, those reasons will conflict with the profit-maximizing objective.
What the market wants vs. what you want
When deciding what to work on, as a founder, you must make decisions based on what the market wants. As opposed to making decisions based on what you personally want.
It’s no wonder why “founder burnout” is a thing.
Besides the fact that you’re working long hours and wearing lots of hats. The alignment isn’t there.
You’re not necessarily doing something that’s aligned with you—your mission, what you want to work on, what brings you joy, what you believe in.
You’re doing what’s aligned with the market.
Humans and markets are both dynamic
Humans are dynamic. We change over time.
Markets are made up of humans, so markets change too.
As a founder, you might find an area of overlap where what you have to offer aligns with what the market wants. Not only does it align with your skills (your ability to produce the in-demand product), but it also seems to align with your interests, passions, beliefs, etc.
So you enter into the market at this point.
But things will change.
You will change. And so will the market.
You and the area of the market, that was once so aligned, will drift apart.
But now there is this product tethering you together.
The product will follow the market.
And you will be dragged along with the market by the product, assuming you choose to continue working on the product.
Optimizing for multiple objectives
Can you make an impact and make money at the same time?
Yes.
But to what degree will each be achieved? There will be trade-offs and, therefore, decisions to make.
As you add more objectives, more trade-offs.
How will you make these decisions?
Is it possible to organize and grow a business such that profit maximization is not your one and only objective?
Yes.
What will be your other objectives?
Solving a specific problem. Prioritizing work-life balance. Donating to charity. Working on what you’re interested in. Working on what makes you happy. Taking breaks to work on something completely different. Not working at all for periods of time. Etc.
You may want to be clear about these other objectives upfront, especially if you plan to make agreements with partners, employees, and investors.
Personal-market fit
Product-market fit is “being in a good market with a product that can satisfy that market,” according to Marc Andreessen.
Personal-market fit is being in a market that you can satisfy.
You.
Not the version of you who is ignoring your interests, compromising on your values, and muting your beliefs. For the sake of profit-maximization.
Rather, the version of you that feels fully aligned with what you’re working on.