Cutting through the hype: is your startup solving a real problem?
I’ve seen too many startups fail to ignore when an idea is merely a trend. The uncomfortable question is: are you actually solving a problem? If the answer is no, your business may lack a sustainable future.
Growth data tells a different story
By analyzing growth data, churn rate, and LTV, we can determine whether our product has a product-market fit or if we are simply accumulating temporary users. For instance, many startups that chase popular trends experience initial spikes in user numbers, followed by a dramatic decline when interest fades.
Case study: successes and failures
Consider a startup that launched a meditation app. Initially, they experienced rapid growth due to the hype surrounding mental wellness. However, without a true PMF, their burn rate escalated while the CAC increased. Ultimately, the app failed. In contrast, another startup in the fitness sector focused clearly on a specific issue – the difficulty of accessing personalized workout programs – and achieved sustainable growth.
Practical lessons for founders and PMs
Anyone who has launched a product knows that data analysis is crucial. Having a brilliant idea is not enough; it is essential to validate it through continuous testing and feedback. Learn to measure your churn rate and CAC, and compare them to your LTV. If the numbers do not add up, it is time to reconsider your strategy.
Actionable takeaways
1. Before launching, ask yourself: am I solving a real problem?
2. Monitor your numbers: churn rate and CAC must be sustainable.
3. Do not be afraid to pivot: if the data indicates you are on the wrong path, make quick adjustments.