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Product-market fit is a fundamental concept that determines a company’s basis for growth and success. It refers to the alignment between a product and the demands of a market, where the product effectively satisfies the needs or wants of its customers. Achieving product-market fit is crucial for businesses as it signifies that the product has a sustainable market that is willing to purchase and use it. This article will explore the benefits of analyzing product-market fit, why it is essential, how to achieve it, methods to analyze it, and ways to measure it effectively.

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Advantages of Analyzing Product-Market Fit

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Cost Efficiency

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One significant advantage of finding product-market fit is cost efficiency. Products that resonate well with the market often benefit from organic growth through word-of-mouth, reducing the need for extensive marketing budgets. This organic growth leads to lower customer acquisition costs and a higher return on investment.

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Accelerated Growth

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Products that achieve product-market fit can scale rapidly. With proven demand, businesses can focus on expanding their reach and refining their offerings without the guesswork of market acceptance. This streamlined approach allows for faster operational scaling and improved market penetration.

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Increased Customer Retention

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Customer satisfaction typically increases when a product meets market expectations, leading to higher retention rates. Satisfied customers are more likely to become repeat buyers, stabilizing revenue and reducing the risk of acquiring new customers.

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Strategic Business Expansion

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Understanding product-market fit enables businesses to make informed decisions about when and how to scale. This strategic expansion is critical to maintaining a competitive edge and ensuring the sustainability of growth efforts.

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How to Achieve It

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Define Your Target Customer

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The first step in achieving product-market fit is identifying your customers. Understanding your target market’s demographics, preferences, and behaviors helps tailor your product to meet their specific needs.

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Identify Customer Needs

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Pinpoint the problems that your product solves for its users. Engage with potential customers through surveys, interviews, and feedback to gather insights into their needs and expectations.

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Develop a Value Proposition

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Clearly articulate what makes your product unique and why it is better than the competition. Your value proposition should highlight the benefits that resonate most with your target audience.

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Create a Minimum Viable Product (MVP)

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Develop an MVP to test the market with a basic version of your product that includes essential features. This approach allows you to gather user feedback and validate the need for your product without fully committing resources.

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Test and Refine Based on Feedback

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Use feedback from MVP testing to refine your product. Address the pain points, enhance features, and ensure that the product aligns more closely with customer expectations.

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How to Analyze It

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Assessing Customer Interaction

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Evaluate how customers interact with your product. Are they using it as intended? Is it solving the problem it was meant to solve? Customer usage patterns can provide valuable insights into product-market alignment.

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Listening to Customer Feedback

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Feedback is crucial in the early stages of a product’s life. It helps understand what customers appreciate about your product and what needs improvement. This continuous loop of feedback and iteration leads to better product development.

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Market Response

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Analyze the market’s response to your product through sales data, customer reviews, and media coverage. Positive responses often indicate a good product-market fit.

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How to Measure Product-Market Fit

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Customer Retention Rates

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A high retention rate suggests that customers find lasting value in your product, a key indicator of product-market fit.

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Growth Metrics

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Measure how quickly and sustainably your product grows its customer base and sales. Rapid growth can be a positive sign of market fit.

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Net Promoter Score (NPS)

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This metric gauges customer satisfaction and loyalty by asking how likely they are to recommend your product to others. A high NPS indicates that customers value your product highly.

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Market Share Analysis

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Comparing your market share with competitors can help gauge how well your product is performing in the competitive landscape.

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Product-Market Fit Goals for Startups

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Startups should prioritize achieving product-market fit above all else, as it significantly enhances their chances of success and sustainability. By focusing on creating a product that addresses a real need, startups can avoid the common pitfalls of product development and ensure a higher probability of gaining a loyal customer base.

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Achieving product-market fit is not just about launching a product but about creating one that resonates deeply with the market’s needs and expectations. It requires a deep understanding of your customers, continuous feedback loops, and an agile approach to product development. By focusing on these areas, businesses can ensure their product not only meets but exceeds market expectations.

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Modeliks offers advanced business planning tools that can significantly aid in achieving and analyzing product-market fit. Its tools help refine your product strategy and ensure your offerings effectively meet market requirements.

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Ready to discover the true potential of your product on the market? Take advantage of Modeliks’ comprehensive business planning software to streamline your strategy. Explore our tools and features designed to propel your business toward success. Sign up for a free trial at Modeliks today and begin your journey to a successful business!

\n","slug":"what-is-product-market-fit","date":"2024-06-10T09:28:44","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"}]},"mainCategory":{"mainCategory":["business-plans"],"videoHeader":null},"tags":{"nodes":[{"name":"market analysis"}]},"featuredImage":{"node":{"id":"cG9zdDoyMzU2","sourceUrl":"/images/cms/What-Is-Product-Market-Fit-How-to-Determine-It.png","altText":"Modeliks Guide: Understand what is product market fit for startups."}},"seo":{"metaDesc":"Discover what is product market fit and how it catalyzes business growth. Learn the steps to identify and achieve perfect market alignment."},"modified":"2024-06-10T09:28:45","related":[{"id":"cG9zdDoxMTU0MQ==","title":"How Accountants Can Offer High-Margin Advisory Services","content":"\n

Why Advisory Services Matter for Accounting Firms

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The accounting profession is shifting. Compliance and bookkeeping remain essential, but today’s clients expect more. They want guidance on how to run their business smarter, manage cash flow, and plan for the future.

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According to a CPA.com survey:

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This means the demand is already there. The opportunity for accounting firms is clear: move beyond bookkeeping into high-margin advisory services.

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The Challenge: Scaling Advisory Without Burning Out

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For most small and mid-sized firms, the hesitation is simple:
❌ Limited staff time
❌ No standardized tools for forecasting & reporting
❌ Concern about overcomplicating workflows

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The good news? Advisory can be delivered at scale, without adding headcount or creating inefficiencies — if you have the right system.

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The Solution: Modeliks for Advisory Services

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Modeliks helps accountants transform their existing relationships into advisory partnerships by automating the heavy lifting.

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Here’s how it works in practice:

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1️⃣ Connect QuickBooks in Minutes
Sync client actuals directly — no messy spreadsheets or manual imports.

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2️⃣ Build Budgets & Automated Financials
Instantly generate a forward-looking P&L, Balance Sheet, and Cash Flow statement, tailored to each client.

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3️⃣ Deliver Dashboards & Variance Analysis
Clients see Actual vs. Plan vs. Previous Periods. You provide insight into why numbers moved — without building reports from scratch each month.

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The Impact for Accounting Firms

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Firms using Modeliks see:
New revenue streams by offering planning & reporting as premium packages
Higher client retention thanks to consistent value beyond compliance
No extra headcount required, since processes are automated
Improved positioning as trusted advisors, not just bookkeepers

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As one accountant put it:

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“Our clients can now make confident decisions. For us it’s a game-changer — we finally sell insight, not just compliance.”

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Why Now Is the Time

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Client expectations are rising. Competitors are moving into advisory. Technology makes it easier than ever to scale.

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If you’re an accountant or firm owner, now is the time to position your practice for the next decade. Advisory services are not just an add-on — they’re the future of accounting.

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Next Steps

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📽️ Watch the full video playbook here: https://www.youtube.com/watch?v=UlQEwnWOdKQ.
🌐 Explore how Modeliks can help you launch advisory services in under an hour -> HERE.

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📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

\n\n\n\n

Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

\n","slug":"high-margin-advisory-services-accountants","date":"2025-09-02T08:30:06","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=UlQEwnWOdKQ"},"tags":{"nodes":[{"name":"accounting advisory services growth"},{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"consulting firm profitability strategies"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial planning for professional services firms"},{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoxMTU0Mg==","sourceUrl":"/images/cms/Screenshot-2025-09-02-at-10.27.59.png","altText":"How to offer Advisory Services at High Margin?"}},"seo":{"metaDesc":"Learn how accounting firms can add high-margin advisory services without extra headcount. Discover how Modeliks helps accountants deliver financial planning, reporting, and dashboards that clients will pay more for."},"modified":"2025-09-02T08:30:10","related":null},{"id":"cG9zdDoxMTQ4Mw==","title":"How to Manage & Grow Your Professional Services Business: A Strategic Playbook","content":"\n

Running a professional services business is demanding. Whether you’re a founder, consultant, accountant, or finance leader, the challenges are similar:

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The truth? Many services firms outgrow spreadsheets faster than they realize. A project-based business requires a planning and reporting framework that adapts as you grow – not one that breaks every time a new client, project, or team member comes onboard.

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That’s where having a structured financial planning and reporting system becomes a game-changer.

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Who is This Playbook For?

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This strategic framework is designed for:

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If you run a project-based business, use timesheets, or manage multiple clients, this playbook is for you.

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How to Grow Profitability in Professional Services

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Professional services firms often face profitability challenges because margins are tied to capacity, efficiency, and client mix. Here’s where the right planning approach makes a difference:

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1. Plan by Project (Not Just Company-Level)

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Each project has its own revenue, costs, and resources. Without project-level visibility, it’s impossible to know which work is actually profitable.

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2. Track Actuals vs. Plan

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It’s not enough to create a yearly budget. Monthly actuals vs. plan reporting helps you quickly see where projects are off track and adjust before problems snowball.

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3. Build Scenarios

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What happens if a big client leaves? Or if you add two more consultants next quarter? Scenario planning gives you the confidence to make tough decisions with numbers to back them up.

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4. Monitor Utilization & Capacity

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Employee utilization is the heartbeat of a services firm. By linking financial forecasts to billable hours, staffing, and client demand, you can identify bottlenecks and prevent costly underutilization.

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How Modeliks Helps

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At Modeliks, we’ve built a platform that turns these best practices into a structured, repeatable process.

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With Modeliks, you can:

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Why This Matters Now

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Most firms wait until they have 100+ employees to rethink planning. But the truth is, dimensional planning and reporting matters at 20 employees, as much as at 200.

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The earlier you set up a scalable framework, the faster you can:

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Key Takeaway

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Growing a professional services business isn’t just about winning more clients — it’s about building a system that lets you manage projects, measure performance, and grow profitably.

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That’s what this playbook is about — and why we built Modeliks.

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👉 If you want to see how Modeliks can help you manage and grow your services firm, watch the full video walkthrough here.

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📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.

\n\n\n\n

Enjoy Modeliks! We know we are!

\n\n\n\n

Author:
Modeliks Team

\n","slug":"financial-planning-for-professional-services","date":"2025-09-01T11:47:08","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=E87pBDPZzPc"},"tags":{"nodes":[{"name":"accounting advisory services growth"},{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"consulting firm profitability strategies"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial planning for professional services firms"},{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDoxMTQ4NA==","sourceUrl":"/images/cms/Screenshot-2025-09-01-at-13.39.02.png","altText":"Financial planning for professional services"}},"seo":{"metaDesc":"Discover how to manage and grow your professional services firm with project-based financial planning, reporting, and forecasting strategies."},"modified":"2025-09-01T11:47:11","related":null},{"id":"cG9zdDoxMDQyMA==","title":"Modeliks 2.0 is Live!","content":"\n

Today we released a massive new update of Modeliks.  A multidimensional Modeliks 2.0. I am both happy and sad to see Modeliks grow up. I liked baby Modeliks. He was cute and a little clumsy. Now, we created a beast.  

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We listened to your feedback and made Modeliks by far the best financial planning and reporting tool for SMEs. Alright, I might be a bit subjective, but here is what’s new:

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    \n
  1. Multi dimensional planning and reporting. This means that you can plan and track performance by organizational unit, whether that is business units, departments, geography, stores, projects. However your company is structured, you can have clear targets and track performance across your whole organization.
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  3. Consolidation: if you plan on a business unit level, Modeliks will consolidate your financial plans upwords.
  4. \n\n\n\n
  5. Allocations: allocate costs from the head office down to the operating units. Why? Some costs are incurred in the head office, or regional offices, but should be allocated down to the operating units, in order to get a correct picture of profitability across the organization.
  6. \n\n\n\n
  7. Quickbooks integration. Connect Modeliks to your Quickbooks and have your planning and monthly reporting automated, error free and done in minutes.
  8. \n\n\n\n
  9. Account grouping. Group several accounts into one group account. For example, you can create a Utilities group account and make your Energy, heating, phone, internet, water accounts part of the utilities group. Why? Because when you plan, you don’t want to plan on every single small account that you have in your accounting system. It is too tedious and messy. So, group them logically, plan on groups, and make planning and reporting easy and useful.
  10. \n\n\n\n
  11. Initiative planning and evaluation. You have a new initiative in mind for your business? Create a business case and see how it will impact your business. If the numbers say it’s good, keep it. If not, drop it.  
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  13. Monthly forecasting. Now you can forecast up to 3 years on monthly basis.
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  15. Lastly. Speed. Modeliks is now 10 times faster than before.   
  16. \n
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And there is a lot more to come in the next few months. Stay tuned for new features, and in the mean-time, plan, manage and grow your business with Modeliks 2.0.

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Let’s recap. Now you can:

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    \n
  1. Build driver based financial models for any business
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  3. Do it by department, business unit, geography, stores, projects
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  5. Run scenarios and evaluate new initiatives
  6. \n\n\n\n
  7. Track actual performance vs budget, on every level in your organization. Especially easy with the Quickbooks integration
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  9. Automate monthly investor and management reporting
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  11. And write professional and detailed business plans with the help of our AI assistant.
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Enjoy Modeliks 2.0! We know we are!

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Author:
Modeliks Team

\n","slug":"modeliks-2-0-a-live","date":"2025-04-01T08:59:31","categories":{"nodes":[{"id":"dGVybToxMQ==","name":"Business Plans"},{"id":"dGVybToxNA==","name":"Financial Forecast"},{"id":"dGVybTozNQ==","name":"News"},{"id":"dGVybTozNA==","name":"Partners"},{"id":"dGVybToxMg==","name":"Pitch Decks"},{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["financial-forecast"],"videoHeader":"https://www.youtube.com/watch?v=-61deO4BkFg"},"tags":{"nodes":[{"name":"budgeting and forecasting"},{"name":"business planning"},{"name":"Financial analysis"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial planning"},{"name":"financial reporting"},{"name":"market analysis"},{"name":"modeliks"},{"name":"quickbooks"}]},"featuredImage":{"node":{"id":"cG9zdDoxMDQyMg==","sourceUrl":"/images/cms/Modeliks-2.0-Post-image.png","altText":"Modeliks 2.0."}},"seo":{"metaDesc":"A massive new update of Modeliks is here. A multidimensional, Quickbooks integrated, faster than ever Modeliks 2.0. GROW your business, NOW!"},"modified":"2025-04-01T09:20:31","related":null}]}2:["$","$L8",null,{"post":"$9"}] 7:[["$","meta","0",{"name":"viewport","content":"width=device-width, initial-scale=1"}],["$","meta","1",{"charSet":"utf-8"}],["$","title","2",{"children":"Modeliks | What Is Product Market Fit & How to Determine It?"}],["$","meta","3",{"name":"description","content":"Discover what is product market fit and how it catalyzes business growth. Learn the steps to identify and achieve perfect market alignment."}],["$","link","4",{"rel":"canonical","href":"https://www.modeliks.com/resources/business-plans/what-is-product-market-fit"}],["$","meta","5",{"property":"og:title","content":"Modeliks | What Is Product Market Fit & How to Determine It?"}],["$","meta","6",{"property":"og:description","content":"Discover what is product market fit and how it catalyzes business growth. Learn the steps to identify and achieve perfect market alignment."}],["$","meta","7",{"property":"og:url","content":"https://www.modeliks.com/resources/business-plans/what-is-product-market-fit"}],["$","meta","8",{"property":"og:site_name","content":"Modeliks"}],["$","meta","9",{"property":"og:locale","content":"en_US"}],["$","meta","10",{"property":"og:type","content":"article"}],["$","meta","11",{"name":"twitter:card","content":"summary"}],["$","meta","12",{"name":"twitter:title","content":"Modeliks | What Is Product Market Fit & How to Determine It?"}],["$","meta","13",{"name":"twitter:description","content":"Discover what is product market fit and how it catalyzes business growth. Learn the steps to identify and achieve perfect market alignment."}],["$","link","14",{"rel":"icon","href":"/favicon.ico","type":"image/x-icon","sizes":"16x16"}]] 1:null