Pivot-or-proceed

When completing the Phases of customer validation, the last step is to decide whether the company will continue its current course or it needs to pivot.

• Assemble and review all key discovery and validation findings
• Review the business model hypothesis and their interactions with one another
• Focus on the metrics that matter in the financial model

Some red flags:

• The company needs 100k customers to be profitable, but the market is not that large
• Customer acquisition costs are too high
• The sales roadmap is too complex, cost of sales become way too high
• Referrals are not delivering new customers