1
0.1
Why this step matters Most new products fail for a dull reason: not enough people wanted them badly enough to pay. Validation is the cheapest way to find that out. A few weeks of conversations and small experiments can save you months of building, a lot of money and a co-founder relationship that sours when nobody signs up. Validation does… Read more →
Pros
- Talk about their past behaviour, not your idea
- Ask for money or a commitment early
- Write down a pass/fail threshold before you test
Cons
- Counting compliments from friends as validation
- Building the product to "see if people want it"
- Testing with an audience that will never buy
Cost: $0-200 · Time: 1-3 weeks · validation customer interviews smoke test pre-sales problem discovery
2
Map who already solves the problem, how they charge and where they fall short, so you can pick a gap you can win.
ValidationCustomersRevenue
0.2
Why this step matters Competitors are proof that a market exists. They have already taught customers what to expect, what to pay and which words describe the problem. Studying them closely tells you where the market is crowded, where customers are frustrated and where a smaller, sharper product can win. "We have no competitors" is almost never true. If nobody… Read more →
Pros
- Include spreadsheets, agencies and "do nothing" as competitors
- Read 1-3 star reviews for unmet needs
- Sign up for competitor trials and newsletters
Cons
- Concluding "we have no competitors"
- Copying the market leader's feature list
- Spending weeks on research instead of selling
Cost: $0-100 · Time: 3-7 days · competitor analysis market research positioning pricing research market sizing
3
0.3
Why this step matters A business model answers three questions: who pays, what they pay for and how often. The same product can succeed or fail depending on those answers. A tool sold as a monthly subscription to small businesses needs very different marketing, support and cash flow from the same tool sold as an annual contract to large companies,… Read more →
Pros
- Pick a model your competitors' customers already accept
- Model unit economics with pessimistic numbers
- Match the model to how you plan to fund the company
Cons
- Defaulting to "free now, ads later"
- Pricing by cost instead of value
- Mixing three revenue models before you have one working
Cost: $0 · Time: 2-5 days · business model unit economics pricing saas revenue model