Instead of setting early revenue targets, new products should focus on a more telling metric: getting a small cohort of sophisticated users to become obsessed. This deep engagement is a leading indicator of product-market fit and provides the necessary insights to scale to the next 50 users.

Once product-market fit is achieved, the singular obsession must be retention. Before focusing on expansion metrics like NRR or efficient acquisition (CAC), you must first prove you can stop the "leaky bucket" and keep the customers you've already won.

Many founders mistakenly define Product-Market Fit by revenue (e.g., "$1M ARR"). The correct measure is the ability to predictably create customer value. This is best quantified by a leading indicator for long-term retention, not sales figures, as revenue can be achieved without true market fit.

Scaling readiness is a sequential, two-step process. First, achieve Product-Market Fit, defined by customer retention. Only then should you focus on Go-to-Market Fit, defined by profitable unit economics. Scaling before proving both leads to failure.

The true indicator of Product-Market Fit isn't how fast you can sign up new users, but how effectively you can retain them. High growth with high churn is a false signal that leads to a plateau, not compounding growth.

Revenue or customer numbers merely indicate sales ability. True product-market fit is proven when customers derive enough value to continue using the product, making retention the most accurate lagging indicator of value delivery.

Don't get distracted by the vague goal of "achieving product-market fit." Instead, focus on tangible, measurable signals of traction: Are people buying the product? Is the messaging resonating? Do you have the right sales funnel? These concrete metrics provide actionable feedback that leads to success.

Founders mistakenly define product-market fit by revenue or customer numbers. A better definition is achieving a high retention rate, proving customers get long-term value. This prevents scaling a business that can't retain its customers.

Initial user sign-ups merely confirm a problem is painful. True product validation only comes when customers remain for years, proving your solution is effective and not just a temporary fix they were willing to try out of desperation.