How do you know if you have product-market fit?

Product-market fit is indicated by several key signals. According to Nikhyl Singhal, it is achieved when your product generally satisfies the needs of multiple customers with minimal modifications. This indicates that the product can efficiently meet demand and that there is a certain "pull" from the market for it, which doesn't require extensive marketing effort to acquire users 1 2.

A strong indicator of product-market fit is when demand rises rapidly without the need for extensive marketing investments. This is often characterized by a phase of "hypergrowth," where demand outpaces supply, akin to having a line of customers waiting outside a popular restaurant 1.

Conversely, if a company frequently needs to significantly tailor its product for each customer or struggles to find a consistent demand without heavy marketing, it likely hasn't achieved product-market fit. The amount of effort needed to attract and maintain customers is a critical reflection of whether a company has product-market fit 2.

Evaluating these aspects can help diagnose whether a product truly fits its market or if further iterations and adaptations are required to reach that stage.