This is Part-Time Genius Blog on how to grow your business in a profitable and sustainable way.
This post covers one of the seven key takeaways from my presentation at the Vendep Capital B2B SaaS Channel breakfast.
Stay tuned for the remaining six tips.
WHAT – MAKE OR BREAK WITH BUSINESS MODEL FIT
A simple yet good definition for product-market fit is that you have created a product that provides significant value to the customer, and does it better than the competition. Very good but that's not enough.
In order to reach meaningful commercial success with your product, you have to design it for the channel.
The channel to market, the way you reach your customers is maybe the most valuable asset to your business. That's the biggest business multiplier which divides the losers from the winners.
SO WHAT - YOU GROW ONLY IF THE PARTNER GROWS
Keeping product attributes like features and quality on par with the competition, if your product is optimized for the business model of the partner, the way they make business, the likelihood that partner would sell your product over the competition grows significantly.
This is exactly what you want, don't you?
The logic behind my statement is simple. Like any business, partners are looking for ways to make more business with lower costs - building profitable, sustainable growth.
By well understanding the business logic and processes of the partner, you will able to design a product or service that helps the partner achieve both objectives.
Why is this relevant to you?
Your business grows only if the business of the partner grows.
Secondly, you will create partner loyalty by helping them run their business in a more efficient way instead of just providing yet another product to sell.
Thirdly, with your product partner can create a phenomenal end-user experience which drives customer loyalty.
High partner and customer retention are crucial for your business profitability and long-term growth.
Sounds good - what does it take to get there?
NOW WHAT - OPTIMISE FOR PARTNER BUSINESS MODEL FIT
You must do it often, incrementally and verify assumptions frequently with the partners.
A comment from the audience at the Vendep Capital event "Oh man, there's so much to do". Sure, if you think this is something extra you should do.
The right way is to consider it an integral part of your business and product planning process.
You should be paranoid about the quality, performance, and competitiveness of the channel. The best way to demonstrate that, is by optimising your product and service for the channel.
If you think this is relevant to your business and you should do something about it, let’s talk.
PS - if you think your product already has a perfect business model fit, let me know as I want to learn from you.
Good reading on Product-Market Fit, check Dan Ohlsen's "The Lean Product Playbook".
Pekka Usva is a seasoned business executive passionate about helping companies reinvent themselves, grow business profitably yet in a sustainable manner.