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Business Validation10 min read

Business Idea Validation Checklist: 25 Critical Questions

Complete validation checklist with 25 questions every founder must answer. Download free PDF and avoid the mistakes that kill 90% of startups.

Validate Your Idea Free

Before you invest a single dollar or write a line of code, you need to answer 25 critical questions about your business idea. These questions have saved founders millions of dollars and countless wasted years.

90% of startups fail. Most never asked these questions. Don't be part of that statistic.

How to Scale Your Idea (The Checklist)

Score each question from 0 to 4. Total points will determine if you should proceed or pivot.


Part 1: Problem and Solution Validation

Before building, you must confirm that the "pain" is real and your "aspirin" actually works.

Question🚩 Red Flag (Stop)✅ Gold Standard (Go)
1. Is the problem real?People say "that's interesting" but don't ask to buy.80%+ of 50 interviewees confirm painful frustration.
2. Is it simple?You need a whiteboard and 5 minutes to explain it.One sentence explanation; everyone gets it instantly.
3. Are they paying now?No current solutions exist or they use free tools.They're currently spending $100+ monthly on bad workarounds.
4. Is it 10x better?You're only incrementally better (cheaper/faster).You are 10x faster, cheaper, or easier than incumbents.
5. Is it buildable?Development will take 12+ months to reach MVP.You can launch a core version in under 4-8 weeks.

Part 2: Market Size and Demand

A great product in a tiny or shrinking market is a hobby, not a business.

Question🚩 Red Flag (Stop)✅ Gold Standard (Go)
6. Market Size?Total potential customers are fewer than 10,000.10M+ potential users (TAM) with a clear niche (SAM).
7. Search Demand?Fewer than 100 people per month search for the problem.50K+ monthly searches with active Reddit/forum communities.
8. Growth Trend?The industry is declining or stagnant.Growing at 20%+ annually (Check Google Trends).
9. Acquisition?No clear, affordable channel to reach customers.You can reach 1,000 customers for under $500 (CAC < LTV).
10. Budget?Customers have zero budget for this category.Currently spending $100+ on related premium tools.

Part 3: Competition and Differentiation

Don't be afraid of competition; be afraid of having no "unfair advantage."

Question🚩 Red Flag (Stop)✅ Gold Standard (Go)
11. Top Competitors?Zero competitors exist (usually means zero demand).3-10 active players (validates market without saturation).
12. Differentiation?You look exactly like the current market leader.You have a 1-sentence "Unique Value Prop" that sounds better.
13. Moat / Defensibility?Trivial to copy in a few days or weeks.Hard to copy (Network effects, Patents, or 12-month head start).
14. Profitability?All current competitors are shutting down or pivoting.Competitors are growing, profitable, or raising high-tier funding.
15. Customer Pain?Customers are 100% happy with existing tools.Negative reviews of competitors show clear, fixable gaps.

Part 4: Business Model and Economics

Passion builds products, but unit economics build businesses.

Question🚩 Red Flag (Stop)✅ Gold Standard (Go)
16. Revenue Model?"We'll figure out monetization later."Clear subscription or transaction model (customers already pay).
17. Pricing Power?Customers won't commit to a price point.10+ customers signed a LOI (Letter of Intent) at your price.
18. LTV vs CAC?CAC (Cost to Acquire) is higher than LTV (Lifetime Value).LTV is at least 3x higher than CAC (Profit per user).
19. Break Even?No clear path to profitability in the next 24 months.You can reach profitability in under 6-12 months.
20. Recurring Value?Pure one-time sales with zero retention.Monthly/Annual sub model with sticky, ongoing value.

Part 5: Execution and Resources

The best idea fails if the team can't cross the finish line.

Question🚩 Red Flag (Stop)✅ Gold Standard (Go)
21. Team Skills?You have zero technical or sales skills in-house.80% of critical skills (tech/sales) are held by the founders.
22. Time Commitment?You can only spare 5 hours a week for this.20-40+ hours per week dedicated to validation and build.
23. Capital Runway?You have less than 1 month of savings.6-12 months of runway to build and iterate safely.
24. Early Adopters?You have zero beta testers or waiting list signups.50+ people on a waiting list ready to try the MVP.
25. Risk Tolerance?Failing will result in total financial ruin.You have a backup plan and can afford to fail and try again.

How to Interpret Your Total Score

  • 80-100 Points: VALIDATED ✅ You're ready to launch.
  • 60-79 Points: PROCEED WITH CAUTION ⚠️ Fix the weak areas before launch.
  • 40-59 Points: RISKY 🚨 Major validation gaps exist.
  • 0-39 Points: STOP ⛔ Pivot or restart the process.

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Next Steps: Validate Your Idea Today

  1. Score your idea using the framework above.
  2. Run it through our Free AI Validator.
  3. Talk to 20 potential customers this week.
  4. Build a simple MVP (landing page minimum).

Remember: The best business ideas seem obvious after they succeed. Before success, they all seemed risky.

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