#067 What Changes to Make After Finding Product-Market Fit (Part 3)

One of the biggest challenges for startups is turning product-market fit into profit. Since startups have the benefit of finding outside investments, traditional financing practices don’t always apply. The question then becomes how to find the right profit margins over time while using investment funds to grow. On the newest episode of the Midstage Startup Momentum Podcast, startup coach Roland Siebelink discusses how to manage margins and profitability after product-market fit. He shares what to do and not do following product-market fit so you don’t sacrifice growth for profitability while also making your startup appealing to potential investors. The importance of locating gross margins so you don’t lose money in every sale. Why optimizing for growth will make your startup more appealing to investors. Cautionary tales of companies that grew too big before finding the right gross margins. The step-by-step process for becoming profitable over time. How the product margin can decline for software companies over time. Why it’s best not to optimize for profitability immediately after finding product-market fit.