Awane Jones · The Founder's Guide

A Founder's Guide

Finding
Product-Market
Fit.

A practical playbook for getting to the one thing that matters first — told through the company I built and sold, Phenomena.

How to use this guide

Read it once for the map. Keep it for the method.

Every chapter teaches one move in the order you actually need it — then shows exactly how I made that move building Phenomena, a multiplayer VR Saas platform we grew to 22 countries and sold. Steal the method. The story is just proof it works.

The teaching

What to do, and why now

Each chapter is a principle you can apply to any company — not VR, not gaming, yours.

The example

How Phenomena did it

Look for the navy boxes. That's the real, often-messy version of the principle in practice.

The framework

Idea to exit, in the order it actually happens.

01

Product-Market Fit

Find this first. Everything else is downstream.

Product-market fit means being in a good market with a product that can satisfy that market. Before you have it, every part of the business fights you. After, the market starts pulling you forward.

Most founders try to fix the wrong thing. They tune the funnel, rewrite the pitch, hire a salesperson — all before they've proven that anyone genuinely needs what they've built. None of it works, because none of it is the actual problem. The actual problem is fit.

Here's how to tell where you stand. Be honest, because the whole guide depends on this answer.

At fit

The market pulls.

People use it obsessively. They make money with it. Word of mouth happens on its own. You stop pushing the rock uphill — demand starts pulling you forward.

The test

The 40% question.

Ask users: "How would you feel if you could no longer use this?" When 40%+ say very disappointed, you have fit. Below that, keep digging. You're not there yet and that's ok. Keep going.

How Phenomena did it

"Would this arcade close without us?"

We translated the 40% question into language our market understood. Our customers were entertainment venues, so the real test wasn't a survey — it was dependence. If a VR arcade dropped our platform, would their floor go quiet? Would they lose the bookings that paid their rent?

When the honest answer became "yes, we'd be in trouble without you," we knew we'd crossed the line. That's mission-critical — and mission-critical is what fit feels like from the customer's side.

The market doesn't care about your vision. It tells you the truth — if you're willing to listen.
Awane Jones
02

Your Ideal Customer

Build for one customer. Just make sure there are enough of them.

The most expensive mistake is building for everyone. The most valuable move is building for one specific customer — then confirming the total market is big enough to matter.

Your ideal customer profile isn't a marketing detail. It's the decision that shapes your roadmap, your pricing, your sales strategy, your product development — everything. Get it right and you can build a successful business. Get it wrong, and your company will likely not succeed or worse, struggle until it eventually dies.

Answer these three questions before you build anything else.

01

Who has the exact problem you solve?

Who loses sleep over it? Who is already paying for clumsy workarounds? Who would be genuinely devastated if you disappeared tomorrow? That person is your customer — not the larger, vaguer "market" around them.

02

Who can actually pay for it?

Budget isn't only money — it's urgency. The best customer feels enough pain that spending to fix it is obvious, and sees a return that makes the price feel small.

03

Who do you build the whole company around?

Pick deliberately, then validate the total addressable market. If you capture a meaningful share, does it become a business worth building? TAM doesn't just signal upside — it defines the kind of company you can realistically create, and even shapes your future fundraising potential if you choose to go that route. Be rigorous and honest in the assessment. The numbers are indifferent to your optimism.

How Phenomena did it

Location-based entertainment operators.

We chose arcades, family entertainment centers, and amusement parks — businesses that live or die by turning square footage into revenue. They were actively hunting for an affordable attraction that would drive foot traffic and make money fast. That urgency was the budget.

And the market was big enough: thousands of these venues exist worldwide, all reachable with one software platform. Narrow customer, wide market — that's the combination you're looking for.

03

Test Before You Build

A cheap experiment beats an expensive assumption. Every time.

Never commit to something with a long, costly build before you've confirmed people actually want to buy it. The fastest path to fit is a small, real test in front of real customers.

The instinct is often to disappear for a year, build the “perfect” product, and unveil it in a big launch — very Steve Jobs. I followed that approach at an agency once, and I saw firsthand how quickly it can kill a company if the product misses the mark. That lesson stuck.

So when I built my first product, I knew better. Instead of isolating for long cycles, I chose a different approach: prototype quickly, get it in front of real users, and let their behaviour — not their politeness — tell me what's actually working.

People often won't mislead you intentionally, but they will tell you what feels kind rather than what is true. That creates false positives, and those can quietly pull you in the wrong direction. Be careful about mistaking encouragement for validation.

01

Prototype fast

Build the smallest, cheapest version that lets someone have the real experience. Low cost in, high learning out.

02

Get real feedback

Watch actual customers in an actual buying context. Real visitors, real money, real reactions — not friends being kind.

03

Kill your darlings

If it doesn't pull people in on its own, cut it. No emotional attachment. The thing you love least often outperforms the thing you love most.

How Phenomena did it

We rented a mall store and watched.

Before raising a dollar or committing to a roadmap, we took a small retail space in a mall, built cheap VR prototypes, and ran them on weekends. We watched strangers walk up, play, and react. One question mattered above all others: did they want to play again?

That single experiment validated our customer before any investor money was at risk. It saved us months and potentially hundreds of thousands of dollars — this was the most important decision we ever made.

The pivot it forced

The mall told us something we didn't want to hear. The version we were proud of was the version that failed. Here's what changed when we stopped arguing with the market:

The flop

Solo VR experiences

  • Players felt isolated and self-conscious
  • No social energy in the room
  • Very few people came back
  • Zero word-of-mouth from operators
  • It felt like an awkward tech demo
The hit

Free-roam multiplayer

  • Groups competed, laughed, came back
  • Social energy filled the whole venue
  • Strong repeat visits and group bookings
  • Operators saw measurable revenue lift
  • It became a destination experience

The lesson: fit isn't found in a boardroom. It's found in a real room, with real people, doing the thing and most importantly of all, paying real money.

04

The Business Model

A product people love is half the job. Predictable revenue is the other half.

Once people want the thing, your job becomes turning that demand into revenue you can forecast. Predictability is what lets you hire, invest, and eventually raise.

A business model is a set of choices that reinforce each other: how you charge, what you sell, and what your customer is actually buying. The trap is selling your technology. Customers don't buy technology — they buy an outcome. Reframe everything around the outcome and the model gets simpler.

01

Charge for predictability

Recurring revenue beats one-time sales — for you and for your customer's planning. A CEO's core job is finding revenue you can count on next month. That's it.

02

Keep the offering fresh without bloating the team

You don't have to build everything yourself. Mix your own work with partners' so the value keeps growing without your headcount doing the same.

03

Sell the outcome, not the parts

Translate every feature into the result your customer cares about. They're not buying your stack — they're buying more revenue, less risk, or more time. When you are early, don't build something without talking to your customers. Validate everything before a single line of code is written.

How Phenomena did it

Operators don't buy tech — they buy revenue per square foot.

We charged operators a monthly subscription — recurring, predictable revenue for us. We mixed our own games with licensed third-party titles, a "Netflix for VR" library that stayed fresh without a huge internal studio. We bundled stable hardware so venues never worried about uptime, because for them downtime is lost money.

Most importantly, we stopped pitching VR and started selling revenue per square foot. Same product, completely different conversation — and a far easier one to close.

05

Selling & Go-to-Market

Good selling is just helping the right person buy.

Go-to-market without fit is just burning money. Once you have fit, selling becomes finding the pools where your customers already gather and showing them an outcome they can't ignore.

Founders often think selling is about persuasion. It isn't. It's about qualification and clarity: finding the people who already have the problem, confirming they can act, and making the path to "yes" feel small and safe, which ensures the result they are seeking. The pressure tactics you're dreading? They're a sign you're selling to the wrong person.

Bad selling

Pushing the product

  • Leading with features, not outcomes
  • No qualification — pitching everyone
  • No clear ROI or payback timeline
  • Pressure tactics and fake urgency
  • Pitching before you understand them
Good selling

Helping them win

  • Leading with fast payback or clear ROI
  • Qualifying ruthlessly for the right fit
  • Understanding their business deeply
  • Helping the buyer achieve the outcome they are actually seeking.
  • Building trust before asking to close

Qualify with PACT

Before investing time in any opportunity, run it through four questions. If it fails one, walk away — disqualifying fast is a sales skill, not a failure.

P

Pain

Does this customer feel the problem acutely — right now? No felt pain, no deal.

A

Authority

Can the person in the room actually decide? Selling to someone who can't say yes wastes everyone's time.

C

Capacity

Do they have the budget, space, and bandwidth to succeed with you? Not every customer is worth winning.

T

Timing

Is now the right moment in their cycle to act? The same yes lands very differently in the right season.

How Phenomena did it

One sentence, then five steps.

Our value proposition was a single line: "Turn your space into a money making machine — without buying expensive attractions every year." It named their fear, quantified the gain, and removed the risk. Abstract value is forgettable; numbers close.

Then we ran the same motion every time:

1

Hunt where they gather

Industry trade shows like IAAPA were our hunting ground — operators in buying mode self-select by showing up.

2

Ask, don't pitch

The first call was entirely about their business. We listened for 80% of it before ever mentioning our product.

3

Free trial

We offered a free trial of our product with no contracts or obligations, removing friction and pressure for the customer. We then paired this with a venue-specific ROI model tailored to their operation.

4

Get to "yes" faster

We knew that once their customers experienced the game, adoption would follow naturally. Their customers became our strongest advocates, so pressure-based selling was unnecessary. The proof was in the experience itself.

5

Make content (a lot of it)

We live in a noisy, fast-moving world. Consistently producing content that clearly communicates your value proposition — and shows exactly how customers win with your product — is no longer optional; it's essential.

06

Funding & The Exit

Raise on proof, not on a pitch deck.

You don't need money to start, and timing is everything. Real traction changes every conversation — with investors, customers, and the buyer who eventually takes the company further than you can.

Funding follows evidence. Bootstrap your first proof — you have more tools to do that cheaply now than any founder in history, especially with AI. Chase non-dilutive grants where they exist. Then, once you have revenue and repeat customers, a clear TAM, raise to pour fuel on a fire that's already lit. The order matters: proof first, money second.

How Phenomena did it

Revenue is the language investors actually speak.

We pitched VCs and heard no, over and over. What finally unlocked the yes was simple: we walked in with real revenue numbers from the mall prototype. We had proof, not just a story. Every rejection before that had sharpened which objections to pre-empt — the "no" pile built the pitch that worked.

We ended up raising over $4M and reaching customers in 22 countries. None of it would have happened without the cheap experiment that de-risked the narrative first.

Knowing when to sell

This is way more of an art than a science. Every entrepreneur is different; I can only speak from my own experience. For me, a great exit isn't always the biggest check — it's the right moment. We sold our company because we felt our mission was complete: the model was proven, it had scaled, and a buyer could take it further than we could at that stage. Consolidation in our space was needed. Letting go was the right call.

01

The model is proven at scale

The thing works repeatably, not just once. The risk is gone.

02

A buyer can grow it faster

Someone with more reach or capital can do more with it than you can right now. And that's ok.

03

You've achieved the founding vision

You had a vision, you built it, you grew it, and you took it as far as it could go. That alone is something to be proud of.

Some entrepreneurs choose to keep operating as more competitors enter the space, while others — myself included — recognize that most markets eventually consolidate. At that point, the decision becomes clear: keep fighting in an increasingly compressed field, or exit on your own terms and bow out gracefully.

The short version

Six things to remember when you close this guide.

01

Fit before everything

No funding, hiring, or marketing replaces product-market fit. Find it first, then scale.

02

Test before you build

A cheap experiment beats an expensive assumption every time. No, you aren't wasting your time. You are validating.

03

Your customer is your strategy

Product, pricing, sales, and GTM all flow from knowing exactly who you build for.

04

Revenue de-risks everything

Real numbers change every conversation — investors, customers, hires. Earn traction first.

05

Sell outcomes, not features

People buy results, not technology. Speak their language, show the value or lose the deal.

06

Know why you're building

A clear mission tells you when to push, when to pivot, and when to let go.

Before you give up

One signal that escape is possible changes everything.

In the 1950s, Dr. Curt Richter ran an experiment at Johns Hopkins that every founder should know.

Without hope
~15minutes

Rats placed in water with no sign of rescue gave up and drowned in under fifteen minutes.

With hope
60+hours

Rats rescued once — then returned to the water — swam for sixty to eighty hours straight.

One moment of rescue — one signal that it's possible — changes everything. The same is true for founders. Find signs of PMF.

It's the rescue you need to keep going.

About the author

Awane Jones

Awane Jones

2× Founder & Entrepreneur of the Year

Awane has spent 15+ years building innovative companies from the ground up. He founded one of the earliest AR mobile platforms, co-founded a successful AR/VR agency, and built Phenomena — a free-roam multiplayer VR Saas platform that reached 22 countries, raised over $4M, and was acquired. This guide distils what those companies taught him about the one thing every founder has to get right first: finding product-market fit.

Building something? Let's find your fit.

If this guide was useful and you want a second set of eyes on your market, your customer, or your path to traction — I'd love to hear what you're working on.

Share this guide freely. Attribution appreciated.