The Importance of Doing the Unthinkable and Consistently Working Towards Product Market Fit

The Importance of Doing the Unthinkable and Consistently Working Towards Product Market Fit

In the world of personal and professional growth, there are certain concepts and ideas that often go overlooked. These are the ideas that are considered unthinkable, the ones that seem too radical or unconventional. However, it is these very ideas that have the potential to lead to great work and create new opportunities.

According to Farnam Street, great work tends to grow out of ideas that others have overlooked. When everyone else is focused on the same strategies and methods, it becomes difficult to stand out and make a significant impact. By exploring the unthinkable, we can uncover new perspectives and approaches that have the potential to revolutionize our work.

Making decisions is never easy, especially when they require us to give up short-term opportunities for the sake of long-term growth. However, as Farnam Street points out, it is these difficult decisions that often lead to the greatest opportunities. It is important to remember that great opportunity rarely comes without sacrifice. By being willing to make the tough choices and embrace the unknown, we open ourselves up to the potential for extraordinary success.

One of the most practical skills in life is the ability to do things when we don't feel like doing them. It's easy to give up or take the easy way out when faced with challenges or obstacles. However, true success lies in our ability to push through these moments of resistance and continue working towards our goals. Muhammad Ali famously said that he only starts counting his sit-ups when they start hurting because that's when it really counts. This mindset of pushing through discomfort is what separates the consistent performers from the intermittent ones.

Consistency is key when it comes to achieving success in any area of life. While intermittent effort may work for some tasks, it is consistency that truly drives results. But how do we maintain consistency when faced with difficulties or when we simply don't feel like doing the work?

The key is to tell ourselves that we can quit tomorrow, but not today. By adopting this mindset, we give ourselves permission to take a break, but we also hold ourselves accountable to continue pushing forward. It is this balance between self-compassion and discipline that allows us to stay consistent even when the going gets tough.

In the world of product development and entrepreneurship, achieving product market fit is a crucial milestone. Product market fit occurs when a product is good enough to shift focus from improvement to scalable distribution channels. It is a time when we can start building strategies for growth and acquisition.

According to the Growth Engineering Blog by Jeff Chang, the most important metric for determining quantitative product market fit is the cohort retention rate. This metric measures the percentage of users or customers who continue to use a product over time. A high cohort retention rate indicates that the product is meeting the needs and expectations of its target audience.

NPS, or Net Promoter Score, is often used as a metric for product market fit. However, Chang argues that some of the biggest tech companies in the world have terrible NPS scores but are still able to grow to over a billion users. Instead, he suggests focusing on cohort retention rate as a more reliable indicator of product market fit.

To track progress and determine if product market fit has been achieved, Chang recommends using a cohort retention "triangle" chart. This chart allows you to visualize the retention rates of different cohorts over time. When you have a few cohorts that level off at a specific number, you can be confident that you have achieved product market fit.

It is important to note that different types of products have different points of product market fit. To find the right benchmark for your product, it is helpful to analyze the retention rates of comparable products that have experienced significant growth. For consumer products, a retention rate of 25% is considered a good floor, while for B2B SaaS products, a retention rate of 70% is a good floor.

Why is cohort retention rate so important for product market fit? Good retention amplifies your acquisition efforts, as the users you acquire actually stay with your product. It is also a strong indicator of how much users love your product, which in turn amplifies word of mouth. Users are more likely to share a product with their friends if they are still using it after a long period of time.

To ensure that you are actively measuring your cohort retention rate, Chang suggests using a "triangle" cohort retention chart. This chart allows you to track the retention rates of different cohorts and make data-driven decisions to improve your product and increase retention.

In conclusion, the ideas of doing the unthinkable and achieving product market fit may seem unrelated at first glance. However, they both require us to think outside the box, take risks, and push through challenges. By embracing the unthinkable and consistently working towards product market fit, we can unlock new opportunities and drive extraordinary results.

Actionable Advice:

1. Embrace the Unthinkable: Challenge conventional wisdom and explore unconventional ideas. Great work often comes from thinking outside the box and uncovering overlooked opportunities.
2. Be Consistent: Develop the discipline to do things even when you don't feel like doing them. Push through moments of resistance and maintain consistent effort towards your goals.
3. Measure Cohort Retention: If you're building a product or business, track cohort retention rates to determine product market fit. Use a "triangle" cohort retention chart to visualize progress and make data-driven decisions.

Remember, success often lies in the willingness to do what others won't and the ability to see potential where others don't. Embrace the unthinkable, be consistent in your efforts, and strive for product market fit. These are the keys to achieving extraordinary results in both personal and professional endeavors.