THE TRAP - How not to hit product-market fit

THE TRAP

How not to hit product-market fit

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When founders start they are excited about understanding the user, digging deep for user insights, and then crafting a product that works for the user.

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It takes multiple iterations.

Some iterations unlock something, which inspires confidence among the founders. Some iterations make things worse, which tests their self-belief and grit. But it is this process that eventually leads to compelling offerings and delightful products. Which brings consumer pull. Which creates user adoption and engagement. Which creates VC pull.

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Then a well-intentioned VC offers ‘gunpowder’ to the well-intentioned founder. With an implicit expectation to explode. Some startups explode. Some implode.

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Immediately after the capital raise, hiring becomes the main activity across the company. The team expands suddenly. Founder's JD changes suddenly. From building something users love to managing people. Keeping them motivated, keeping them productive, or just keeping them. And then not keeping them. But still keeping some of them. Often, the ones who choose not to stay.

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Some founders give elbow room to the team and let them run the product, the brand, marketing, etc. And become full-time people managers. Making themselves miserable.

Other founders don't give the elbow room to the team. Keep all decisions to themselves. Making the team miserable.

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This misery manifests in many ways.

Founder works harder than ever and still gets less done each day. Imagine running on a treadmill but without burning fat. Early team members start saying 'I miss the good old days’. New folks complain about a lack of processes or even favoritism. The real casualty however is the user.

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Products take longer to build and lack user insights. This materially hurts the prospects of hitting product-market fit. The founder thinks he or she didn't hire well. Tries to correct that. Usually by replacing people. But sometimes also by adding more folks while not removing the old folks. Giving them new designations even though the job is the same. (I am not making this up. It happens.) All this creates more problems than it solves. That is exactly what a trap is.

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Some of this is inevitable. Some of it is not. But most of it can be delayed.

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How? Raise less. Hire late. Hire slow.

The bigger the team, the less likely is the PMF.

The founder needs to work on the product at least till the product works.

More is less. More is a trap.