Your iteration rate is the key to finding product-market fit for your app

For any entrepreneur launching an app finding product-market fit is a lot like finding the Golden Ticket; it’s rare, but when it happens it’s life-changing.

Unlike an enterprise business, when you build a consumer app your end-user can’t easily tell you what they want (vs. enterprise apps that are focused on solving a known problem or a pain point for clients). Think about it this way: Before the iPhone launched, no consumer research would point out the need for a touchscreen, keyboardless device. Before Snapchat, no consumer would say they wanted the ability to send ephemeral messages.

Consumers aren’t able to tell you what they want; this makes consumer products a shot in the dark. There is no guarantee if or when product-market fit can be found. It’s usually a long journey of continuous iteration.

And ongoing iteration is what gets you to product-market fit. Each iteration gives you one extra at-bat. Hitting a home run is easy if you can strike out 10o times instead of 3. Y Combinator’s Sam Altman said it best in this tweet:

Screen Shot 2019-04-01 at 4.14.45 PM

Finding product-market fit is hard. Look at how many consumer products Facebook and Google shut down even with their massive resources (remember FB Paper, FB Groups app, Google+ app?) Massive resources can help, but it’s not the most critical.

In the early days of Wattpad, despite only having a handful of employees, every day the product looked a bit different. We implemented new concepts in the morning, checked in the afternoon, measured overnight and killed it the next morning if it didn’t work out. That’s how we found product-market fit in many things. And that’s how we left our competitors in the dust.

Although finding product-market fit is freaking hard, it is also very fun and rewarding once you have figured it out.

Keep on iterating!

When tech giants move next door

A slew of international tech companies – Google, Uber, Samsung, Microsoft, Amazon – have committed to or expressed interest in setting up shop in Toronto. If you’re a homegrown startup or scaleup you can’t help but think about the implications of having these giants in your backyard.

Companies often expand their footprint to lower costs, access specialized talent or for a host of other reasons. It’s not new. They aren’t the first international companies who want to set up shop in Toronto, and won’t be the last.

And why not? Toronto is a world-class city with some of the best universities in the world producing some of the finest technical and business talents. We’re home to an incredibly diverse community who have the perspective and understanding to solve global issues and build products and services that work for the world.  

Colleagues and friends have recently been asking me for my take on these moves. Are they helpful or harmful to the city and the local tech ecosystem?

In my opinion, we should welcome these moves – but be wary of them.

When a few foreign companies decide to move to a burgeoning city, they can help build a critical mass that directly supports homegrown companies by spurring interest in the region. They attract high caliber talent and then provide opportunities for these employees to hone their skills and learn new ones so they can further develop into well-rounded and in-demand workers.

But too many foreign companies in a single locale can make it seem like they’ve colonized the area, leaving little room for local businesses. It gets too difficult to compete, too expensive to stay in your backyard. Think about this: If data is the new oil, do you really want all the ‘oil companies’ to be foreign-owned?

So it’s not a choice of either-or. Having zero international companies who operate locally won’t stimulate the ecosystem. With too many foreign companies, locals lose the ability to control their our own destiny,  and eventually, ideas and innovation become stifled.

For now, I welcome these new companies into our backyard but make no mistake, it can never replace building our own homegrown giants. I’m certain that the incredible Toronto tech ecosystem will continue to make waves regardless of who moves next door.