Entrepreneurship and Small Business (ESB) V2 Certification Practice Exam

Which stage is considered the first phase in achieving product/market fit?

1. Prototype stage

2. Launch stage

3. Traction stage

4. Monetization stage

The correct answer is: Prototype stage

The prototype stage is crucial because it focuses on developing a tangible version of the product that can be tested and validated in the market. During this phase, entrepreneurs create preliminary models or mock-ups to gather feedback from potential customers and assess their needs and preferences. This iterative process allows for adjustments to be made before a full launch, helping to ensure that the final product will resonate with the target market. In contrast, the launch stage comes after the prototype has been developed and validated. It involves releasing the product to the broader market, which takes place once product-market alignment has been established through testing. The traction stage focuses on generating interest, engagement, and measurable usage metrics, typically occurring after the product has been launched. Finally, the monetization stage is related to generating revenue from the product, which is not the first step in establishing a product-market fit but rather a goal to be achieved later on.