The Foolproof Formula for Finding Largest Product Market Fit

The path to finding largerst product markets fit is formulaic, so I’ll be sharing the steps with you in coming months.

But before we focus on the largest product markets, it’s important to think about the market and not just product development.


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Go through a variety of filters to zero in on the leads you want to reach. This is crazy specific, but you could find all the people that match the following: 

  • A company in the Financial Services or Banking industry
  • Who have more than 10 employees
  • That spend money on Adwords
  • Who use Hubspot
  • Who currently have job openings for marketing help
  • With the role of HR Manager
  • That has only been in this role for less than 1 year
Just to give you an idea. 😀

Welcome to the Era of Applied Technology and Finding the Largest Product Markets

Technology has progressed and is now cheaper than it used to be. It’s also easier, meaning that capital efficient market development through marketing campaigns are the biggest risk startups face nowadays.

The New Seed Stage

Before a company can raise an A round, they have to go through rounds of funding before. The first one is the Pre-Seed Round and then Seed Rounds.

largest product markets

More people are starting businesses now than before, but with more competition it is getting harder to reach traction milestones.

Product-Centric Founders Better Beware

The seed stage has changed, but the way startups work is still the same. Most founders spend most of their time and energy on product development.

Many founders don’t have the resources to market their product or make any money off of it. When they get help from an accelerator, they’re not really taught how to do either.

Learning is Critical to Success in the Largest Product Markets

We at GrowthX have found that the most important factors in early stages are predicting, proving and scaling revenue.

If you follow a proven method of learning, testing, measuring and validating the product before scaling it or making any major changes to its designfunctionality then you should be able to find out whether your product is successful in the largest product markets. This process allows companies will have enough data about their products so that they can start generating predictable revenue.

Largest Product Markets Development is a six-step process with two parts.

  • Market Foundation Resource Review (Preparation) Market Discovery Market Messaging
  • Resource Review (Preparation)
  • Market Discovery
  • Market Messaging
  • Market Execution Instrumentation (Preparation) Market Outreach Market Results
  • Instrumentation (Preparation)
  • Market Outreach
  • Market Results

I’ll talk more about the formula in future posts, but for now I want to focus on phases one and two.

If you agree that data is important to finding the largest product markets fit, then due diligence will be too. We start with Market Foundation.

Phase One – Resources Review

You want to create a roadmap of people, processes and technologies that will help you build your company into one that is functional.

Step One: Resource Review Mapping and Planning

Review the current team and their skill sets.

The outcome of this meeting was to determine how we can make the sales process more effective and efficient.

Step Two: Marketing & Sales Process Analysis

You need to check the current sales process and see what is missing.

To optimize, eliminate any blockers that can be removed through simple process change.

Step Three: Current Marketing & Sales Technology Stack

Review what you have in place already to manage your marketing and outreach program.

I determined that they should be replaced, and with a new system.

Phase Two – Largest Product Markets Discovery

Your goals here are threefold:

  • To retain and grow your customer base, you need to be aware of the lifecycle they’re in. Determine what’s most important for them at this stage so that you can establish a foundation.
  • Understand what type of customers you have and how they’re acquired, the cost to acquire them (CAC) and their projected lifetime value.
  • Have a good understanding of how you can acquire customers, what your pricing strategy is, and who has access to data.

Step One: Current Account Mapping and Pipeline Review

Interview other team members, look at existing databases and spreadsheets to see who you should be targeting.

Step Two: Discover Ideal Customer Profiles (ICPs)

Look at all the different accounts they have, and see if there’s any patterns. For example, what type of company is it? What are their revenue potentials?

Step Three: Prioritize Current Pipeline

Review your current pipeline of opportunities and focus on the most important ones.

Step Four: Review Current Customer Experience

Review the experience that your current customers have, including their UX design and onboarding process.

Step Five: Business/Pricing Models

When you want to invest in a company, review the unit economics. That will allow you to think of rational hypotheses for LTV:CAC ratios.

Step Six: Define Customer Acquisition Strategy

Based on the information in ICP, we will test a number of customer acquisition models during initial market outreach. These include no-touch as well as various levels of high touch inside and outside.

Step Seven: Create a Data Acquisition Strategy

Based on your ICPs, we will find a way to keep the pipeline full and make sure we have enough qualified prospects for you.


Need Help Automating Your Sales Prospecting Process?

LeadFuze gives you all the data you need to find ideal leads, including full contact information.

Go through a variety of filters to zero in on the leads you want to reach. This is crazy specific, but you could find all the people that match the following: 

  • A company in the Financial Services or Banking industry
  • Who have more than 10 employees
  • That spend money on Adwords
  • Who use Hubspot
  • Who currently have job openings for marketing help
  • With the role of HR Manager
  • That has only been in this role for less than 1 year
Just to give you an idea. 😀
Editors Note:

Want to help contribute to future articles? Have data-backed and tactical advice to share? I’d love to hear from you!

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Justin McGill
About Author: Justin McGill
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