Market-founder Fit – pick your industry

TAM, SAM, SOM

Alright, let’s imagine we’re setting up a lemonade stand, and we want to figure out how many people might buy our lemonade.

• TAM (Total Addressable Market):
• • Imagine it as: All the people in the entire neighborhood who might want lemonade.
  • Why it’s important: It helps us understand how many people could be interested in buying our lemonade if we could reach everyone.

• SAM (Serviceable Addressable Market):
• • Imagine it as: Only the people in the neighborhood who are close enough to walk to our lemonade stand.
  • Why it’s important: It helps us focus on the people who can easily get to our stand. We don’t want to make promises to people who are too far away.

• SOM (Serviceable Obtainable Market):
• • Imagine it as: The number of people we think will actually come and buy our lemonade.
  • Why it’s important: It’s a realistic guess about how many people we can really serve. Maybe some people like soda better, so they won’t buy our lemonade.

Stakeholder Mapping: Understanding Key Players in Your Market

Stakeholder mapping is identifyingthe key individuals, groups, or organizations that can significantly impact or be impacted by your startup. This includes understanding their interests, influence, and relationships within a specific market.

So, what’s a stakeholder?

Stakeholders are like the different players in the game of business. They can be customers, suppliers, competitors, or even people who make the rules (like legal entities, governments etc,).

Identifying Stakeholders:

List out all the organizations or individuals that are relevant to your business initiative. This could include customers, suppliers, competitors, regulatory bodies, employees, and more.

Assessing Interests and Influence:

Evaluate the interests and concerns of each stakeholder. What do they want or need? Additionally, assess their level of influence. Some stakeholders may have more power to affect your business than others.

Understanding Relationships:

Analyze the relationships among stakeholders. Are there alliances or conflicts between them? Understanding these dynamics is crucial for anticipating potential challenges or opportunities.

Mapping Priorities:

Prioritize stakeholders based on their level of influence and the importance of their interests. This helps in focusing efforts and resources on managing relationships that are most critical to the success of the business initiative.

Market-founder fit: myth or truth

“Market-founder fit” is a concept that parallels the more commonly known term “product-market fit.” While product-market fit focuses on the alignment between a company’s product or service and the needs of a specific market, market-founder fit shifts the emphasis to the alignment between the founders or entrepreneurs and the characteristics of the target market.

In essence, market-founder fit assesses how well the founders of a startup or business understand, connect with, and are suited for the market they are entering. It acknowledges that the success of a venture isn’t solely determined by the quality of the product or service but also by the founders’ understanding of the market dynamics, customer needs, and the overall industry.

Get a co-founder: 

Choosing a co-founder is a critical decision for the success of your startup. Here are some steps and considerations to help you select the right co-founder:

Shared Vision and Values:

Ensure that you and your potential co-founder share a similar vision and values for the business. A misalignment in fundamental principles can lead to conflicts down the road.

Complementary Skills:

Look for a co-founder who brings complementary skills to the table. If you’re strong in technology, consider someone with business development or marketing expertise. This diversity can enhance your startup’s overall capabilities.

Trust and Compatibility:

Trust is crucial in a co-founder relationship. You should feel comfortable sharing ideas, concerns, and responsibilities. Compatibility in work styles, communication, and decision-making is essential for a successful partnership.

Previous Relationship:

Having prior experience working together, whether in a professional or personal setting, can provide insights into your potential co-founder’s work ethic, problem-solving approach, and reliability.

Passion and Commitment:

Ensure that your co-founder is as passionate and committed to the business as you are. A shared commitment to the venture helps in overcoming challenges and maintaining motivation during tough times.

Financial Alignment:

Discuss financial expectations and commitments upfront. Clarify each co-founder’s financial investment in the business, salary expectations (if any), and how financial decisions will be made.

Communication Skills:

Effective communication is vital in any partnership. Choose a co-founder who communicates openly, listens actively, and can articulate ideas clearly. Miscommunication can lead to misunderstandings and conflicts.

Problem-Solving Ability:

Evaluate your potential co-founder’s problem-solving skills. A co-founder should be someone who can navigate challenges, adapt to changes, and find solutions collaboratively.

Resilience and Grit:

Entrepreneurship is filled with ups and downs. Look for a co-founder who demonstrates resilience and grit, someone who can weather the uncertainties and setbacks that come with building a startup.

Network and Resources:

Consider a co-founder who brings a valuable network and resources to the business. A strong network can open doors to partnerships, clients, and investors.

Legal and Equity Agreements:

Clearly define the roles, responsibilities, and equity distribution between co-founders in legal agreements. This helps prevent disputes and ensures everyone is on the same page.

Trial Period:

Before formalizing the partnership, consider working on a smaller project or tasks together. This trial period allows you to gauge how well you collaborate and whether your skills complement each other.

Remember, choosing a co-founder is a significant decision, so take the time to thoroughly vet potential candidates and make sure the partnership aligns with your long-term goals.

Example:

Resources: market insight platforms (CB Insights, Statista etc.)