Entrepreneurship and Small Business (ESB) V2 Certification Practice Exam

What is the second phase in the product/market fit progression?

1. Growth stage

2. Traction stage

3. Launch stage

4. Prototype stage

The correct answer is: Launch stage

The second phase in the product/market fit progression is the traction stage. During this phase, the business starts to gain initial customers and demonstrates that there is a market for the product. This involves gathering user feedback, refining the product based on that feedback, and working on marketing strategies to attract more users. In the context of product/market fit, the traction stage is crucial because it indicates that the product is not only functional but also resonates with the target audience. Achieving traction is often seen as evidence that the product has a viable customer base, which is essential for long-term growth. The launch stage typically precedes the traction stage and is focused on making the product available to users. Prototype and growth stages come either before or after traction and represent stages where issues related to development and scalability are addressed.