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Business Idea Validation Checklist

The document provides a checklist for validating a business idea, emphasizing the importance of understanding customer needs and assumptions. It outlines steps such as documenting key assumptions, engaging with potential customers for feedback, refining the business plan, and assessing financial viability. The document also suggests using tools like LivePlan for planning and forecasting business growth.

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alexander.sattari
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40 views3 pages

Business Idea Validation Checklist

The document provides a checklist for validating a business idea, emphasizing the importance of understanding customer needs and assumptions. It outlines steps such as documenting key assumptions, engaging with potential customers for feedback, refining the business plan, and assessing financial viability. The document also suggests using tools like LivePlan for planning and forecasting business growth.

Uploaded by

alexander.sattari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Idea

Validation Checklist How to Tell If You Have a Good Business Idea Page 1

So, you’ve got an idea for a business. Now you want to know—is it a good idea?

● Does it solve the problem your target audience says they have?
● Is it something people are going to want to pay money for?
● Is it feasible with your resources?

This checklist will walk you through the process of validating your business idea.

1. Document your key assumptions about your business


At this stage, all you’re trying to do is document your assumptions. This shouldn’t take you more
than 30 minutes if you use the One-Page Plan format. Later you’ll get out into the “real world” to
test those assumptions.
Outline your business’s one-sentence value proposition

Define the problem your business is solving

Describe how your products or services solve your ideal customer’s problem

Identify your ideal customer (who are you solving the problem for?)

Research how your potential customers might be solving their problem today

Figure out what sales and marketing channels you’ll use to reach your target customers

Figure out what your team will look like (identify any members you may need to hire)

Rough out your business model, or at least how you will make money and what your primary expenses will be

Outline the next steps you’re going to take to validate your assumptions

Identify any partners or other companies whose support you may need
2. Talk to your potential customers
To begin testing your assumptions, you’ll first need to get out and actually talk to your customers.
This will help you determine whether or not your assumptions about what they want (and are willing
to pay for) are on track. Your risk of failure is much higher if you don’t do this.
Verify that your potential customers have the problem you assume they have

Find out how they’re solving their problem today

Find out what they think of your idea

Ask them what they’d be willing to pay for your solution

For higher quality feedback, show them your prototype (if you have one)

Find people who think your idea sucks—and learn from them

3. Update your assumptions based on what you’ve


learned
In the first step, you created a One-Page Plan which outlined your assumptions. Now that you know
more about your customers and what they want, it’s time to update those assumptions.

Go back and refine* your One-Page Plan, specifically focusing on the problem, your solution, and

target market.

*Refining your plan and going through several iterations is key to the entire process of figuring out
whether or not you have a good idea. You may do this a few times before you feel ready for the next
step, and you may even do it again after the next step!

4. Determine how much money you will need to


launch your business
By this stage, you’ll know if you have a winning idea on your hands. Now, you need to figure out
whether it’s financially viable, and how much you’ll need to get going. It’s best to start small and
adapt as you learn more, so do factor that in as you work out your startup costs!

Create a sales forecast

Create an expense budget

Create a cash flow forecast

If it looks like you’ve got a viable financial model and you’ve got a market that is interested in your
idea, you’ve got a good business idea on your hands!
Create a plan to start, fund, and grow your business with LivePlan:

Find your business idea quickly


Use LivePlan’s AI-powered LivePlan Assistant to
instantly generate complete ideas, quickly improve your
writing, and adjust your tone.

No more spreadsheets
Figure out what it would financially take for your
business idea to turn a profit without touching a
spreadsheet or crunching numbers. Build out a complete
forecast with LivePlan, including automatic charts and
graphs, and AI-suggested forecast categories.

Get expert guidance and support


Worried about getting stuck? We have a team of experts
standing by: Chat with our LivePlan experts in app, ask
your toughest business planning questions to our panel
of experts in webinars, get inspiration from 550+ sample
business plans, and use LivePlan’s AI-powered Assistant.

How to Tell If You Have a Good Business Idea Page 3

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