Finding Product Market Fit (feat. Daniel Mawdsley)

In this conversation, Daniel Mawdsley, founder of Skill Society, discusses the innovative approach his company is taking to revolutionize the hiring process through AI-driven assessments. He emphasizes the importance of identifying real problems in the market, understanding product-market fit, and the significance of creating a minimum viable product (MVP). The discussion also touches on the challenges of engineering, the need for scalability, and the entrepreneurial journey, highlighting the balance between passion and practicality in building a successful business.

Takeaways

Skill Society aims to revolutionize hiring with AI-driven assessments.
Traditional hiring processes are often biased and subjective.
Identifying real problems is crucial for product development.
A minimum viable product (MVP) should solve a specific pain point.
Over-engineering can lead to wasted resources and time.
It's important to balance ambition with practical execution.
Feedback from customers is essential for refining products.
Scalability should be considered but not at the expense of initial focus.
Entrepreneurship offers autonomy and the chance to solve meaningful problems.
The journey of entrepreneurship is challenging but rewarding.

Chapters

00:00 Introduction to Skill Society and AI in Hiring

04:23 Revolutionizing the Hiring Process

10:45 Understanding Product Market Fit

19:54 Identifying Real Problems

30:31 Minimum Viable Product (MVP) Explained

41:53 The Importance of Good Engineering

51:03 Scalability and Market Focus

01:00:19 The Entrepreneurial Journey

Podcast

Check out on Spotify.

Summary

Product Fundamentals

Daniel explains that product development must be grounded in market analysis. He stresses the importance of understanding market size and the existence of a problem.
He shares an anecdote about wasting development time on features customers didn’t want, emphasizing the importance of focusing on the minimum viable product (MVP) and gaining customer feedback early in the process.

Minimum Viable Product (MVP)

Definition and Approach

Daniel highlights that an MVP doesn’t have to be a fully functional product. It could be a conversation, presentation, or interactive prototype that imitates the solution. The goal is to gain quality feedback from customers and validate if the product solves their pain points before investing heavily in development.
Balancing Development and Feedback

He discusses the challenge of balancing a visionary approach with practicality. While it’s important to have a long-term vision, the starting point should be solving the most critical pain point for customers. He suggests focusing on a simple MVP and using it to gather insights before building additional features.
Feedback and Iteration

Daniel emphasizes the importance of refining the MVP based on customer feedback. He suggests getting input from various stakeholders (product managers, sales teams, economists) to understand the market and the problem space better. This helps in making informed decisions about what to build next and whom to target.

Example Discussion: Electric Vehicle MVP

Krish introduces a hypothetical scenario involving an electric vehicle as a means to illustrate the difficulty of defining an MVP. He questions how to balance building something impressive (e.g., a car) with staying true to the core functionality (e.g., electric power). He further probes Daniel on how to decide what should be included in an MVP.
Daniel points out that the idea alone is not enough, and without a tangible product, the conversation has little value. He agrees with Krish’s concern that some MVPs are too minimal and fail to prove the essence of the product. Daniel suggests that an MVP should solve a critical pain point and allow the customer to see how it fits into their workflow.

Steps for Defining an MVP

Start Simple

Daniel recommends starting with the most basic version of the product that still solves a problem for the customer. It should be tangible enough for users to interact with and give feedback on, without needing all the features of the final product.
Avoid Overbuilding

He stresses that startups should avoid spending time on unnecessary elements like marketing websites, sign-up funnels, and user management until the core problem is validated.
Manual Prototypes

To prove a concept without overbuilding, Daniel suggests manual prototypes. For example, tasks can be imitated manually or through paper prototypes to validate the solution before automating or building it with complex technology.

Challenges in Execution

Balancing Intent and Execution

Krish notes that while the intent behind building an MVP may be clear, challenges arise during execution. He explains that execution often introduces unforeseen obstacles, making it harder to stick to the original plan.
Building Only What’s Necessary

Both Krish and Daniel reflect on the common mistake of building too much too soon. Daniel reiterates the importance of starting small and scaling only when necessary, especially in a startup environment where time and resources are critical.