FMPs for Founders and their Start-ups
In the start-up environment, addressing a ‘Fundamental Market Problem’ (FMP) is a cornerstone of success.
But what exactly is an FMP?
It’s a pressing issue or unmet need inthe market that customers are eager to solve. By homing in on an FMP, startups can create solutions that not only drive their business forward but also deliver real value to their customers.
Take Airbnb for example. They recognised the FMP of expensive, impersonal hotel stays and limited lodging options. By offering a platform for people to rent out their spaces, they provided a more personal, varied, and cost-effective travel accommodation experience.
Similarly, Uber tapped into the FMP of inconsistent taxi services and complex booking systems. They revolutionised the transportation industry by making rides accessible at the touch of a button.
Both start-ups didn’t just create a product; they solved a fundamental market problem, reshaping entire industries in the process. It’s not just about the idea, but about identifying that critical gap in the market and filling it.
So, for all the budding entrepreneurs, think deeply: What IS the FMP in your target market? How can YOUR startup not just offer a product, but a SOLUTION that customers are actively seeking?
Note that in a recent CB Insights report:
1) 35% of start-ups failed due to “lack of market need”
2) a further 38% were reported to have failed due to “ran out of cash/failed to raise capital”
We submit that “1” may heavily influence “2”, and that’s precisely what an FMP helps you avoid.
For much more on FMPs, we recommend Kent Billingsley‘s insightful book “Entrepreneur to Millionaire”. Founders will also find substantive guidance, not least on “MVPs” and “Build-Measure-Learn-Pivot”, in Eric Ries‘s seminal work “The Lean Startup”.
Share your thoughts and experiences in tackling FMPs in your business journey. Let’s discuss and learn from each other’s strategies.
Barry Eustance CMgr MCMI
Kotter Change Leader Certified
Principal Change & Transformation
Consultant
The Sixsess Consultancy
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