We know what we are doing on behalf of vendors.
Entrepreneurs routinely create fantastic technical innovation that can potentially stall when brought to market. The Managing Directors at MTP have personally brought over 2 dozen companies to IPO, or successful acquisition, as CEOs,VPs of marketing, sales and/or business development. Our experience, combined with the broad market access of our associates, helps ensure the fastest possible transition to sales traction and product-market fit for our vendor clients.
Product Market Fit Analysis
We use our substantial market access, experience, systematic testing and scientific method to helpvendor partners find product-market fit.
The simple definition of product-market fit is the condition that occurs when a minimally viable product is introduced into a good market. A minimally viable product is a product that does only enough to effectively solve the problem that created the market.
A good market is a market that is actively looking to buy something to solve a problem. It is composed of people who are urgently seeking a compelling solution that solves their problem. That’s the test; is the problem urgent and is the solution compelling.
Finding product-market fit is the single most important task a company can accomplish. MTP offers a service to enable startups to test and refine their offerings in the market overall, at a fraction of the cost they would normally pay. We use our distribution infrastructure to reach the market, and we complement the startup’s executive team with the substantial experience of our partners. We don’t make product-market fit happen; the company has to do that. But we make it a lot easier, clearer and cheaper. As lack of product-market fit is the number one company killer, we feel that this service is essential to success.
Ramp and Business Model Development
We want our partners to be financially healthy and reliable over the long term. For them, our enterprise customers, and for ourselves, we work with vendors on building out their market presence while maximizing their profit.
When product market fit is achieved, the focus of activity changes from inside the company to outside the company. The sales force no longer needs to push product at prospects; it is focused on being responsive to the needs customers express on their own.
In recent years pricing models have changed to focus on per-use service charges, versus product acquisition pricing which was prevalent in the past. The effect of this is a reduction in revenue over the service’s lifetime (when you buy something you pay for its use regardless of whether or not you use it), and suppliers see revenue in the form of payment in small recurring amounts (versus one big up-front payment as was the norm in the past).
During the ramp phase, the startup needs to build a viable field infrastructure. The cost of the infrastructure must be less than the amount of revenue the field brings in. This is the crux of a common business model problem; the cost of customer acquisition exceeds the lifetime value of the customer.
MTP offers a service to assist startup design, and augment and deploy a cost-effective field organization. Many models are possible and should be explored and tested. MTP has designed a model called the zero-tier distribution® model that is very capable of eliminating field costs entirely. MTP uses this field infrastructure to assist the startup client during its ramp phase.
Explosive Growth and Reselling
When a vendor has product-market fit and a healthy business, MTP goes all-in,with everything we have and everything we are.
MTP maintains an extensive zero-tier distribution® infrastructure which is capable of taking many products to market simultaneously in a very inexpensive manner. When one of our clients reaches the explosive growth phase, we seek to end our consulting relationship and to become a standard reseller for them. If the company has adopted our zero-tier distribution® methodology, then we will even support the company hiring key people from us to ensure their success. Reselling is what we want to do and what we do best. Anything we can do at this phase to help the company benefits us in-kind.