Over coffee, Sumit Suman observed that PMF for Indian SaaS startups was simple to identify: Check if the founder/cofounder has moved to the US.
I expand on the idea as to why this move is valuable:
Customer Insights on Steroids: Moving isn’t just about a new time-zone but about getting up close and personal with your market. You get to understanding the nuances of customers’ business culture and needs. You experience the pulse of the market firsthand.
Networking: Being on the ground changes the networking game. It goes beyond the realms of typical online connections, fostering the formation of meaningful relationships and discovery by letting serendipity kick in. In the context of enterprise sales, where trust and personal rapport are pivotal, this proximity can become a significant advantage.
Supercharged Sales & Support: By aligning your geography with your customer’s, you’re saying, “I’m right here when you need me”. One can argue that you can shift to US business hours while still living in India, but will you be able to extend an impromptu invite to a potential lead for a coffee/beer?
Investor Confidence: When founders take the leap across oceans, it’s a signal to investors. You’re saying, “We’re serious about this market”. It’s about showing commitment. Investors love a team that’s all in, and this move screams dedication.
Market Commitment Signal: Relocating to the target market is a strong signal of commitment to that market. It’s a declaration that you are ready to go all-in. It’s a commitment that resonates with every stakeholder, including your team, vendors, customers and the larger ecosystem.
Agility: Being in the heart of your market means you can pivot on a dime. Founders can quickly adjust their product or strategy based on direct feedback and real-time insights
It’s a strategic decision indicating that your startup has reached a stage where the potential gains from being closer to its primary market outweigh the benefits of operating from its original location.