Key Startup Lesson from the Oscars

Why PAF eats PMF for breakfast

Positioning-Audience Fit (PAF) is what Oscar winners and successful startups have in common, not Product-Market Fit (PMF).

The 10,000 members of the Motion Picture Academy choose the Oscar winners based on how well the message of those movies resonates with them [listen to NPR Planet Money’s March 8, 2024 podcast episode for details].

There are many great movies made each you year (over 4K annual theatrical releases globally according to one source), but if they don’t position themselves the right way with the voting members, they may not even get nominated despite their intrinsic qualities as artistic creations.

🌟The winners stand out not by shouting louder but by superior PAF, being distinctly different in the right way.🌟

Oppenheimer is not just a biopic about a brilliant scientist or even the creation of the atomic bomb. It is about coming to terms with god-like powers of innovation and technology and their impact on the future of humanity.

Barbie is not just about a doll’s adventures between real and imagined worlds. It is about breaking societal molds and pre-defined roles.

The Holdovers is not just about a teacher-student interactions in a 1970’s boarding school. It is about the transformative power of mentorship, understanding, empathy, and learning from unexpected sources.

The nominees and winners connect with timeless themes of human condition, as well as palpable and immediate topics that need our attention, as was the case with the first Ukrainian Oscar winner 20 Days in Mariupol.

Just as in Hollywood, in Silicon Valley every new startup (is vying for attention: attention of investors, top talent, customers, partners, acquirers, etc.

Yet, attention is a scarce commodity.

Therein lies the PAF lesson:

👉Positioning is not about being everywhere; it’s about being in the right place, in the right mind, at the right time. It is about winning the hearts and minds of your audience.

The market, much like the Oscar voters, craves solutions that resonate personally and profoundly. The challenge is to present your solution — your story — in a manner so compelling that it feels just right.

You may have amazing PMF, but unless you package it with the right positioning (PAF), few would even try your product.

If there were an algorithm for PAF, it would look something like this:

1. Identify the core of what makes you truly different (this is harder than it sounds),

2. Understand deeply who cares about that difference (your audience is narrower than you think), and

3. Communicate that difference in every aspect of your product and story (consistency is key).

👉Remember: your ability to position yourself distinctively in the hearts and minds of your audience can turn your aspirations into achievements.

Position wisely, stand out brilliantly!