Validate demand
Market size is not the same as accessible revenue. The plan should identify who buys, why they switch, who decides, how long the cycle takes and what acquisition costs.
Orders, trials, conversion and repeat purchasing provide stronger evidence than broad surveys or market-share assumptions without a route to market.
Test unit economics
Price, discounts, variable cost, logistics, commissions, returns and service should reflect the actual channel. Gross margin alone is insufficient where the collection cycle consumes cash.
The model should calculate break-even and sensitivity to volume, price, cost and payment terms.
Sequence investment and cash
The income statement does not show when the business runs out of money. Initial investment, working capital, tax, inventory, collections, payments and funding should be modelled over time.
The plan should identify maximum cash deficit and the safety margin required before stable operations are reached.
Use scenarios
A single scenario implies false precision. At minimum, there should be a defensible base case, a downside case and a stress case.
Each scenario should support decisions: how much to invest, when to stop, which milestones release funding and which assumptions require validation first.
How this analysis was prepared
Content directed and reviewed by Juan Carlos Martín Gil using the firm’s diagnostic method. It presents general criteria, not invented cases, and does not replace review of a specific transaction or legal, tax, financial or technical advice.