Entrepreneurship and Small Business (ESB) V2 Certification Practice Exam

What is the focus of the third stage of product/market fit?

1. Growth

2. Monetization

3. Launch

4. Traction

The correct answer is: Traction

The focus of the third stage of product/market fit is centered on traction. At this point in the product development process, the business aims to build momentum with the target market. Achieving traction indicates that the product is not only meeting the needs of customers but is also gaining widespread acceptance and usage. This is vital for validating the product's market potential and demonstrating that it can sustain demand over time. In the stages of product/market fit, traction usually encompasses efforts to enhance visibility, user engagement, and positioning within the market. It involves testing various marketing strategies to attract more users and refining the product based on feedback to ensure it consistently delivers value. While growth and monetization are crucial aspects of a business's journey, they typically come after establishing significant traction. Launch refers to the initial introduction of the product to the market, which precedes this stage. Therefore, focusing on traction allows a business to solidify its foundation before scaling operations or adjusting the monetization strategies effectively.