Business model test

1. Start with your minimum success criteria, not maximum.

2. Find out what you would prefer the company to be worth in 3 years.

3. Define the revenue and throughput you’ll need to reach your 3-year goal.

4. Convert that target into a required number of customers.

5. Consider customer leaving and calculate the lifetime value of each customer.

6. Calculate the number of customer per month you need to grow to reach your goal.

7. Calculate the number of unaware people you need to see your offer to reach your desired growth.


Turn each of the above calculations into assumptions you can quickly test. Also consider that most entrepreneurs are not willing to increase the price of their product, but if doubling the price gains you more revenue than you lose from lost customers, it can be a viable strategy.


In essence, define your minim success, calculate your required customer throughput, and adjust your business model.

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