I’m often or thinking of new businesses, or asked to help launch them for someone. The following is an (ever changing) checklist to ensure that the business is worth my time.
- Who are the customers
- What are the relevant channels: Referral, SEO, SEM, Social, Direct Offline, Direct Online
- For each channel, how much is the CAC
- For each channel, what is the reach?
Revenue per customer
- How much will the customer spend on the first transaction
- What is their Lifetime Value? (How many transactions)
- What is the MVP staff count (operations and marketing)
- What is the baseline tech costs: Email subs, slack etc
- What is the MVP tech costs: how long will dev take, how many techies will it take
- How long will it take to become raman profitable
- How much runway does the team have with current funding (including personal runway)
- How difficult will it be for the team and business to get VC funding