Yos Riady

Startup Viability Calculator

Can you go from a problem to a viable business model?

A startup can fail because the problem behind it cannot carry a business: too few people have it, they do not feel it, they have no budget for it, or they cannot buy today.

From Excuse Me, Is There a Problem? by Jason Cohen, A Smart Bear. (Recommended read!)

Start with a problem you want to solve, and answer the questions below.

Plausible

How many people or companies actually have this problem?

A thousand paying customers takes roughly ten million consumer impressions, or a hundred thousand target businesses.

Self-aware

Do they know they have it, and want it solved?

A problem can be real and still not be felt.

Lucrative

What annual budget is already allocated to it?

Per customer, per year, as a share of net revenue. Budget reaches only the top few priorities.

Liquid

How often are they in a position to buy?

Contracts, switching costs and integration work delay a willing buyer.

Eager (identity)

Will they buy from a company like yours?

Procurement rules, security review, and doubts about company longevity land here.

Eager (comparative)

Will they pick you over the alternatives?

What matters is whether the difference is one most of the market wants.

Enduring

Will they still be paying a year from now?

Churn compounds, so linear growth eventually stalls against it.

Startup Viability Score

1.00Viable as an indie business

Plausible
Self-aware
Lucrative
Liquid
Eager (identity)
Eager (comparative)
Enduring

How to read the score

A moderate answer to every question (a million potential customers, a $100 annual budget, middling scores elsewhere) multiplies out to exactly 625,000, and so lands on 1.0.

  • Below 1.0: the business does not work as described. Change something structural rather than pushing harder.
  • 1.0 or above: viable as an indie business.
  • 2.0 or above: enough headroom for a scale-up.

Each criterion is explained at length in Excuse Me, Is There a Problem? by Jason Cohen.