The Story Behind Favoriot – Part 5: Finding the Right Product Market Fit (PMF)

The Struggles No One Sees

I still remember how challenging it was to secure our first ten customers. Ironically, even though we initially offered the Favoriot Platform for free, it wasn’t easy to attract interest. Free should be irresistible, right? But it wasn’t.

I often sat at my desk, staring at my laptop late into the night, asking myself questions that gnawed at my confidence:

“Is all this effort going to be in vain?”
“What if the market doesn’t embrace the product we’ve poured our hearts into?”

These thoughts weren’t fleeting. They lingered, casting shadows over my team’s tireless days and nights dedicated to building Favoriot. I knew I couldn’t let them down. Their belief in this mission was unwavering, and as their leader, failure felt personal.

The Search for Traction

Market traction — a simple phrase with monumental weight. For startups, it’s the lifeline. Without it, even the most brilliant products fade into obscurity.

Our first strategy was to target individuals—university students, freelancers, and tech enthusiasts. I thought, “Surely, they’d be eager to experiment with our platform.” But reality hit hard. The response was underwhelming, to say the least.

So, we pivoted. “Maybe university lecturers will see the value,” I thought. They supervise students working on IoT projects; surely, Favoriot could be an asset in their toolkit.

Again, disappointment. The traction we hoped for didn’t materialize. That nagging anxiety crept back in. “What else can we do?” I kept asking myself.

Shifting Focus: From Individuals to Enterprises

Determined not to give up, we shifted our strategy. Instead of individuals, we approached companies and organizations directly. Businesses must see the potential, right?

Wrong.

Another hurdle emerged — most companies didn’t know how to utilize the platform effectively. It was as if we were speaking a language they hadn’t learned yet. “Are we too early to the market?” I wondered. Maybe the IoT landscape wasn’t mature enough in Malaysia at that time.

In the startup world, there’s a term: Product-Market Fit (PMF). It’s the sweet spot where your product perfectly aligns with market needs. Without PMF, even the best ideas crumble.

I knew this. And the pressure was immense.

The Breakthrough: Finding Our True Customers

But giving up wasn’t an option. We kept refining our approach, learning from every failed pitch and cold response.

Eventually, the breakthrough came.

We discovered that IoT System Integrators were our ideal customers. These were companies and individuals already offering IoT solutions to their clients. They didn’t just understand the value of our platform; they needed it to build scalable, customized IoT applications.

It felt like finding the missing piece of a puzzle. Suddenly, the conversations flowed more naturally, the demonstrations clicked, and the value proposition was crystal clear.

Tailoring the Offering: Cloud vs. Enterprise Models

With clarity came strategy. We introduced two models for the Favoriot Platform:

1. Cloud-Based Model
   • Perfect for customers seeking flexibility and remote accessibility.
2. Enterprise-Based Model
   • Designed for System Integrators wanting full control over their platforms, this model comes with a perpetual license and unlimited API access, eliminating the worry of high API costs that platforms like AWS or Azure often impose.

This dual approach worked. Favoriot finally carved out its space in the IoT ecosystem.

A Glimpse of Relief, A Promise to Evolve

I’d be lying if I said I didn’t feel relieved. But this wasn’t the finish line — far from it. The tech landscape evolves rapidly, and staying relevant requires continuous innovation.

Yet, this breakthrough gave me something invaluable: confidence. I felt confident that Favoriot had a future and that our journey, filled with detours and lessons, was leading somewhere meaningful.

What’s Next?

This isn’t the end of the story. Not even close.

In the next part, I’ll share how we expanded our customer base, the unexpected sectors that embraced Favoriot, and the strategies we used to win their hearts.

So, stay with me on this journey. Every step we take has a story—a story that might inspire those who are walking the challenging path of building something from nothing.

See you in the next chapter.

More Stories About Entrepreneurship

1. The Story Behind Favoriot – Part 6: Expanding The Business Models
2. The Story Behind Favoriot – Part 5: Finding the Right Fit
3. The Story Behind Favoriot – Part 4: How Favoriot Became More Than Just an IoT Platform
4. The Story Behind Favoriot – Part 3: Why No One Wanted Our IoT Platform—And How We Turned It Around
5. The Story Behind Favoriot – Part 2: Turning Failures into Milestones
6. The Story Behind Favoriot – Part I: The Humble Beginnings of Favoriot
7. Building My Personal Brand: The Stepping Stone to Favoriot’s Success
8. From Research Lab Critiques to Startup Pitches: My Slide Story
9. The Illusion of RFPs in the IoT World: Managing Expectations as a Startup
10. Favoriot’s Odyssey: Navigating the Rough Waters of Early Revenue