Purpose-Culture Fit Is The New Product-Market Fit
Ruben Smit - April 26, 2020
A Recent study showed that 42% of all start-up failures are related to lack of product-market fit. Many entrepreneurs are so caught up in their own business, that they are either unwilling, or unable to understand demand in the real world. It’s ironic that they developed a belief-system that wants the business to succeed at all costs, while it simultaniously creates a highly destructive myopic for the business itself.
This accounts even more for a new generation of businesses and its entrepreneurs: the ones with a strong purpose and a drive to make a lasting impact. As we entered a new, transformative decade, people are demanding increasingly more from businesses to begin with.
So forget product-market fit. It’s not the market, but culture that creates a way in.
This is great, but also a large threat for breakthrough growth. Culture cares about something much deeper than merely a product. It cannot be A/B tested, there is no prototype of culture, and it doesn’t rely on MVP’s, journey’s and technology. Nor can it be bought through series of successful investments rounds.
Culture cares about motivation, values, credibility and the narrative that drives this all forward. Only then follows the rest.
But once you’ve established purpose-culture fit, you’ve unlocked a powerful platform for prototyping, community feedback and the building of a lasting relationship with cultural influencers. Setting up for a highly effective, collaborative process of product and proposition development.
Enabling a great means to cross the chasm from niche to the likes of a mass audience.
We bet the failure number looks totally different once more entrepreneurs mastered this path.