1. Who are your target customers*?
– Describe their characteristics, behaviors, professions, country of residence and finally age, gender.
2. Validate your assumptions
– WHAT is the pain that your customers* face now? How do they currently cope with this pain? Are there a combination of tools available now that the customers can use to partially solve the problem?
– WHY would the customers want to pay for your service? What are the assumptions you have made and how have you been testing them?
– WHO are in your management team? Do their background help your team achieve your business targets? What is the gap? How are you planning to address the gap?
– WHO do you know that can help you to get your customers? How many can they bring in?
– HOW similar are the behavioral traits of the customers* you identified to those that you assume in your business model?
– WHERE would your business get your customers? What’s the conversion rate and is it realistic given the limited marketing budget?
– WHEN would you get your first 100,000 transactions? Is it one year later? How much would you need? Given the budget that you have now, is it realistic?
3. Making money
-This overall market size is >$10 billion – Is this market too broad?
This overall market size is <$1 billion – Is this market too small?
*Customers are paying parties for your business
**Consumers are users who may not necessarily pay