Feasibility & Business Model Proof
The Architecture of Viability. Transition from uncertainty to evidence-based confidence with rigorous financial and operational frameworks.
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Why Feasibility Matters
Customer demand doesn't equal a viable business. Many startups fail not because customers don't want the product, but because the economics don't work.
This playbook bridges the gap between validated demand and a sustainable business model:
- Unit Economics - Prove that each customer generates more value than they cost to acquire
- Revenue Modeling - Build financial projections grounded in validated assumptions
- Cost Forecasting - Understand your true operational costs before scaling
- Risk Mitigation - Identify and address regulatory, technical, and market risks
Based on principles from Lean Analytics, Running Lean, and The Mom Test
The Premature Scaling Trap
70% of startups scale prematurely—spending resources on growth before proving the business model works. Feasibility analysis prevents this by ensuring your unit economics are sound before you pour fuel on the fire.
What You'll Learn
From revenue modeling to risk mitigation, this playbook covers the complete framework for proving business model viability.
Core Components
Five foundational elements for proving business model viability
Unit Economics
Master LTV, CAC, payback period, and contribution margin—the fundamental metrics that prove sustainable growth is possible.
Revenue Modeling
Build bottom-up financial models grounded in validated assumptions, not top-down fantasy projections.
Cost Structure
Understand fixed vs. variable costs, analyze burn rate, and forecast cash runway with precision.
Regulatory Feasibility
Navigate legal, compliance, and regulatory constraints that could block your business model from scaling.
Risk Mitigation
Identify, prioritize, and address market, technical, and operational risks before they derail your startup.
Key Concepts You'll Master
Practical frameworks and metrics you can implement immediately
LTV:CAC Ratio
The golden metric of SaaS. Learn why 3:1 is the benchmark and how to measure it accurately for your business.
Burn Rate Analysis
Track gross burn, net burn, and runway to ensure you never run out of cash unexpectedly.
Payback Period
Understand how quickly you recover customer acquisition costs—critical for cash flow planning.
Contribution Margin
Measure unit profitability before fixed costs—the foundation of scalable business models.
Works Cited & Recommended Reading
Unit Economics & Financial Modeling
- 1. Validated Learning Techniques | Lean Startup Guide. LeanPivot.ai
- 2. Startup Financial Forecasting: The 9 Most Costly Mistakes. FinroFCA
- 3. Financial Modeling for Startups: A Strategic Tool for Success. Kruze Consulting
- 4. Why early-stage startups should wait to calculate LTV:CAC. For Entrepreneurs
- 5. The 3:1 LTV:CAC Rule is Wrong for Most Startups. Reddit r/Entrepreneur
- 6. 4 reasons why LTV/CAC is not a great metric for early startups. Growth Eng Blog
SaaS Metrics & Benchmarks
- 7. SaaS Trends 2025-2026: 25 Definitive Trends Shaping the Industry. Modall
- 8. The Great SaaS Price Surge of 2025: A Comprehensive Breakdown. SaaStr
- 9. SaaS gross margin explained: What it is, and why it's important. Stripe
- 10. SaaS Gross Margin Benchmarks and How To Increase Yours. Lighter Capital
- 11. 2025 SaaS Churn Rate: Benchmarks, Formulas and Calculator. Vena Solutions
- 12. How to Compare CAC Benchmarks by Industry. Phoenix Strategy Group
- 13. How I Calculate the CAC Payback Period. The SaaS CFO
- 14. The Rule Of 40: How To Calculate And Use It For SaaS. CloudZero
Pricing Strategy & Research
- 15. What Is A Hybrid Revenue Model? Definition, Types, Benefits. Marketplacer
- 16. How To Use The Van Westendorp Price Sensitivity Meter. SurveyMonkey
- 17. How To Price Your Product: Van Westendorp Pricing Model. Forbes
- 18. Van Westendorp Price Optimization Using LimeSurvey. LimeSurvey
- 19. Using Conjoint Analysis for Pricing Research. Qualtrics
- 20. Understanding Conjoint Analysis in Market Research. LimeSurvey
AI Costs & Unit Economics
- 21. AI Pricing: How Much Does AI Cost in 2025? Monetizely
- 22. The Best Cheapest AI Inference Services of 2025. SiliconFlow
- 23. Welcome to LLMflation - LLM inference cost is going down fast. Andreessen Horowitz
- 24. Avoiding The Looming AI Unit Economics Crisis. Moreland Connect
- 25. Beyond Benchmarks: The Economics of AI Inference. arXiv
Burn Rate & Cash Management
- 26. What is burn rate? What startups need to know. Stripe
- 27. The Bill Gurley Chronicles: VCs, Marketplaces, and Early-Stage Investing. Macro Ops
Feasibility & Risk Assessment
- 29. AI Project Feasibility Checker. LaSoft
- 30. Technical Feasibility Study & Risk Assessment Framework. Incurvo
- 31. Startup feasibility: How to know if my startup idea is good. Business Model Hacking
- 32. Startup Evaluation Checklist: Essential Investment Criteria. Qubit Capital
- 33. What Is a Risk Matrix? [+Template]. Atlassian
- 34. How to Run Pre-Mortem Exercises [Templates Included]. Atlassian
Regulatory & Compliance
- 35. EU AI Act Compliance Checker. EU AI Act
- 36. President Trump Signs EO to Stop State Regulation of AI. Ogletree
- 37. Executive Order Limiting State Power to Regulate AI. K&L Gates
- 38. How 2025 state legislative sessions grew the AI patchwork. Engine
- 39. CCPA Requirements 2026: Complete Compliance Guide. Secure Privacy
Templates & Frameworks
- 40. Free Lean Canvas Template. Atlassian Confluence
- 41. Free Startup Financial Model Template: Excel/Sheets Download. Zeni AI
Stop Guessing. Start Verifying.
LeanPivot.ai provides AI-powered tools for unit economics modeling, financial projections, and feasibility analysis. De-risk your business model before scaling.