Market Focus

Once you have a base of customers, deployed version 1.0 of your product and have a better understanding of your market, you need to increase customer acquisition and traction in the market, while still maintaining high quality and excellent customer service. 

At this stage every customer matching your ICP is important and every review from those customers is critical to your success.

Overview

With Version 1.0 available and a number of active customers matching your ICP, it’s time to

  • focus on increasing marketing and acquiring more customers that match your ICP
  • enhance your product to ever-growing demands from your customers
  • refine your pricing strategy and financial model

Milestones

Define your growth strategy. Create a plan for acquiring enough ICPs to enable your company to break even and trend towards profitability.

Try to achieve high win rates to prove you are achieving product market fit. Shoot for closing at least 80% of the deals with your ICP prospects.

You should get to the point of break even at this stage and then profitability. You will need to make decisions about how much you would like to re-invest profits for growth vs distributing profits to owners.

Warnings

Don’t try to expand your market focus too much, instead focus on growing within your existing market

Don’t lose focus by getting into a trap of building many derivative products

It’s generally better to focus on a specific product and grow it, as opposed to having many smaller products.

Required Expertise

  • Advanced digital marketing 
  • Advanced business development
  • Financial analysis
  • Product management
  • Cybersecurity
  • QA
  • Project management
  • DevOps
  • Business analysis
  • Development

How do I know I can move to the next stage?

You have matured your product, stabilized it, developed enough features to bring value to customers, are seeing a win rate of over 80% when selling to your ICP, and have gained recognition in the market.

How much time the stage should take

This will often take many years to achieve for most companies. Some companies may never complete this stage.

Need help with challenges at this stage?

Startup Stages Guide Copilot

Welcome to the Startup Stages Guide AI Copilot. Please feel free to ask my a question.