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Founders obsess over finding product-market fit, but Egnyte's CEO argues this is only two-thirds of the equation. The critical third dimension is a scalable, machine-like distribution model. A great product and market are insufficient without a systematic way to build and manage a sales pipeline.

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Many businesses reach a million in revenue through sheer effort but then stall. The shift to scaling requires achieving product-market fit, which creates leverage and pulls in customers, leading to exponential profitability instead of diminishing returns from just pushing harder.

Founders must consider their sales motion (e.g., PLG vs. enterprise sales-led) when designing the product. A product built for one motion won't sell effectively in another, potentially forcing a costly redesign. This concept extends "product-market fit" to "product-market-sales fit."

Many founders mistakenly believe achieving product-market fit is the final step to explosive growth. However, growth only ignites after also finding a repeatable go-to-market fit, which translates the founder's initial sales success into a scalable process that a sales team can execute consistently.

The idea that startups find product-market fit and then simply scale is a myth. Great companies like Microsoft and Google continuously evolve and reinvent themselves. Lasting success requires ongoing adaptation, not resting on an initial achievement.

Technical founders often create a perfect solution to a real problem but still fail. That's because problem-solution fit is useless without product-market fit. An elegant solution that isn't plugged into the market—with the right GTM, pricing, and messaging—solves nothing in practice. It's unheard and unseen.

PMF isn't a fixed state achieved once. It's a continuous process that must be re-evaluated at every stage of growth—from $1M to $1B. A company might have PMF for one scale but not for the next, requiring a constant evolution of strategy and product.

Founder Kyle Hanslovan saw the first signs of product-market fit at just $1.5M ARR. It wasn't about revenue scale, but the realization that the core business functions—demand generation, a fast sales cycle, and scalable service delivery—were becoming predictable, repeatable flywheels that could be systematically improved.

Scaling a company isn't linear. Founders first achieve Product-Market Fit. The next stage is "Company-Market Fit," building organizational structures for growth. Crucially, they must then cycle back to reinventing the product to stay ahead, rather than just managing the machine they built.

The unambiguous signal of Product-Market Fit (PMF) isn't a magic number in your analytics. It's when customer pull becomes so strong that it breaks your supply chain, logistics, and team capacity, forcing uncontrollable growth even without marketing spend.

Successful founders can easily land initial customers and renewals through their personal network. This creates a dangerous false positive for product-market fit, masking whether the product has scalable value and can be sold by others without the founder's presence in the room.