B2BVault's summary of:

The Arc Product-Market Fit Framework

Published by:
Sequoia
Author:

Introduction

Not all great startups solve the same kind of problem. This guide shows three clear ways products can win by truly fitting the market.

What's the problem it solves?

Many startup founders know they need product-market fit, but they don’t always know what it looks like or how to get there. This article explains three simple paths to product success and helps founders figure out which one they’re on.

Quick Summary

Startups often struggle because they treat every problem the same way. But different problems need different plans. This article shows three main ways a product can succeed, based on how customers feel about the problem being solved.

Some customers feel urgent pain and want help now. Others don’t even know there’s a better way. And some aren’t ready for a new idea until they see it in action. These are the three paths: Hair on Fire, Hard Fact, and Future Vision. Each path calls for a different way to build, sell, and grow a company. Real stories from companies like Wiz, Square, HubSpot, OpenAI, and Apple show how these paths work in the real world. Founders can use this to figure out where they are and how to keep moving forward.

Key Takeaways from the article

  • There are 3 paths to product-market fit: urgent need, accepted pain, and bold future vision.
  • Hair on Fire: Customers need help now. You must move fast, stand out, and be clearly better.
  • Hard Fact: People live with a problem and don’t expect a fix. You must show a better way and get them to change habits.
  • Future Vision: The world doesn’t yet believe in your idea. You must build trust, survive early doubts, and find small wins on the way.
  • Each path needs different actions and mindset. No one path is better, but knowing which one you’re on helps you make smart choices.
  • Great companies often move between paths over time as markets and products evolve.
  • The goal isn’t just finding product-market fit-it’s keeping it and growing it across the life of your company.

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