Chris | CEO & Founder
December 24, 2024
Breadcrumbs

How to become the company everyone else chases.

Most Founders Overcomplicate Product-Market Fit—and Miss the Bigger Picture

If you’re creating something new, you’ve likely come across the term Product-Market Fit (PMF) so often that it may have lost its significance. Founders pursue PMF as if it’s the holy grail. While achieving PMF is essential, focusing exclusively on it can make you vulnerable to the competition and limit your overall impact.

Many miss the bigger opportunity: creating and owning a new market category. PMF is a milestone; Category Design is a strategy for dominance.

Let’s explore what PMF looks like, how it feels when you’ve hit it, and why Category Design takes things further—helping you build a great product and an entirely new space where you set the rules.

What Product-Market Fit Feels Like

Here’s what PMF looks like when you’ve hit it:

  • Your customers can’t stop talking about you. They’re your unpaid evangelists, sharing your product without incentives.
  • Growth feels organic. You’re no longer forcing traction—it’s happening naturally.
  • Sales cycles shorten. Instead of convincing customers, you’re taking orders.
  • Support tickets evolve. They shift from “How do I use this?” to “What else can this do for me?”

But the truth is: You don’t “find” PMF—it finds you.

Think back to Uber’s early days. Users begged for invite codes, turning their friends into drivers and riders. Growth wasn’t a goal—it was a tidal wave. PMF is a point where the pull is so strong it feels like riding a rocket ship.

Boken’s Checklist for Knowing You’ve Hit PMF

PMF can feel elusive, but here are five practical ways to measure it:

1. The Pull Test ⚡

Are customers actively seeking you out, or are you still chasing them?
PMF means inbound interest outweighs your outbound effort.

2. The Referral Test 🗣

Do users share your product without incentives?
True PMF turns customers into your sales team.

3. The “Very Disappointed” Test 💔

Ask users: “How would you feel if you could no longer use this product?”
If over 40% say “very disappointed,” you’ve built something indispensable.

4. The Sales Test 💪

Are sales cycles getting faster? Is price becoming less of a hurdle?
When PMF hits, urgency and value perception soar.

5. The Sleep Test 😴

Do you wake up to signups and excitement—or fires to put out?
PMF lets you focus on growth, not survival.

The Difference Between PMF and Category Design

PMF is about resonance—your product solves a problem, and people love it. Category Design, however, is about creating an entirely new playing field. Here’s how they compare:

Product-Market FitCategory Design
Solves an existing problemFrames a new problem and solution
It is a proactive, deliberate strategyIs a proactive, deliberate strategy
Focuses on one productEncompasses the ecosystem and narrative
Drives tractionDrives market leadership

How They Work Together

PMF validates that your product works. Category Design ensures it matters. Uber didn’t just hit PMF; they framed the problem of “transportation inefficiency” and became synonymous with the solution.

When you design a category, you control the conversation, define success, and make competitors irrelevant.

Why Category Design Is Essential

Here’s the brutal truth: PMF doesn’t guarantee success. Competitors will copy your work without Category Design and chip away at your market share.

Consider these stats:

  • Only 0.5% of startups truly dominate their market. Why? They don’t just solve problems—they redefine them. (Play Bigger)
  • Categories account for 76% of the market cap in their industries. (Category Pirates)
  • Companies that lead their category grow 2x faster than those competing within an existing market.

Category Design isn’t just about being first; it’s about owning the narrative, shaping demand, and creating an unassailable position.

How to Combine PMF and Category Design

To succeed, you need both. PMF gets you traction, but Category Design turns traction into lasting impact. Here’s how to align the two:

1. Define the Problem You’re Solving

PMF validates your solution, but Category Design frames the problem in a way that positions your product as the only answer.

2. Own the Conversation

Use storytelling to shape how your market sees the problem and why your solution is unique. This isn’t just marketing; it’s about creating context.

3. Build an Ecosystem, Not Just a Product

Category leaders don’t just sell products—they build ecosystems. Think Apple with its hardware, software, and services.

4. Invest in Lightning Strikes

Category Design requires moments that capture attention and shift perception. Make your presence undeniable, whether it’s a bold launch or a disruptive campaign.

5. Measure Trends, Not Just Numbers

Metrics validate PMF, but Category Design is about momentum. Track how your narrative gains traction in the market over time.

The Journey Beyond PMF

PMF is an exciting milestone, but it’s not the endgame. Without Category Design, you risk becoming just another product in a crowded market. With it, you define the space, set the rules, and lead the market forward.

At Boken, we specialize in helping founders find PMF and leverage it as a springboard for designing and owning new categories. Whether it’s clarifying your story, building your ecosystem, or crafting a category strategy, we’re here to guide you to market leadership.

Final Thought

The best founders don’t just build products—they build futures. PMF is your signal that you’re onto something great. Category Design ensures that greatness lasts.

If you’re ready to stop chasing markets and start creating them, let’s talk. The only thing better than hitting PMF is becoming the company, everyone else chases.

#CategoryDesign #StartupAdvice #ProductMarketFit

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