Chapter 8 of 12

Chapter 8: The Go/No-Go Decision Framework

The PivotBuddy Viability Score and decision outcomes.

Playbook Chapters
What You'll Learn How to score your viability, make the proceed/pivot/kill call, and accept hard truths.

The Decision Gate

All your work leads to this: Should you build, change direction, or walk away?

The viability score turns your research into one clear answer. No gut feelings—just data.

The Viability Scorecard

Score your business against these criteria:

Criterion Target Your Score
Customer Value vs. Cost Customer worth 3x+ what it costs to get them or
Cash Recovery Recover customer costs in < 12 months or
Gross Margin > 50% now, path to >70% or
Path to Profit Can reach profit in < 24 months or
Technical Feasibility Complexity Score < 7/10 or
Risk Profile No unmitigated "Red Zone" risks or
Market Defensibility Competitive advantage score > 6/10 or

Decision Outcomes

PROCEED TO MVP (Score > 75)

The model works on paper. Risks are managed. Economics are sound. Next step: Move to Playbook 04 (MVP Design) and start building.

PIVOT BUSINESS MODEL (Score 40-75)

Product is desired, but economics don't work as configured. Action: Change revenue model, customer segment, or channel. Re-run feasibility with new assumptions.

KILL (Score < 40)

Problem is real, but there's no viable way to solve it profitably. Action: Return to Playbook 01. This is a success—it saves years of wasted effort.

The Psychology of the Kill Decision

The hardest part is admitting the "baby is ugly." This stage is a filter. If the math doesn't work, don't build.

Don't Fall for Sunk Costs

"We've already spent 3 months on this!"

The Truth: 3 months to save 3 years of wasted effort is a win. Keep what you learned. Change what doesn't work.

Signs You're Rationalizing

  • "The market will change"
  • "We just need to find the right customers"
  • "Costs will come down eventually"
  • "We can make it up in volume"
  • "Other companies burned money too"

Signs of Clear Thinking

  • "The data doesn't support this model"
  • "We need to change X to make this work"
  • "This segment shows better economics"
  • "Our assumptions were wrong—here's what we learned"
  • "Let's test a different approach"
Killing is Winning

Every successful entrepreneur has killed ideas. The skill isn't having perfect ideas—it's recognizing bad economics quickly enough to pivot before you've burned your runway. A kill decision is evidence of discipline, not failure.

What You Walk Away With

  • Viability Score: Objective assessment against industry thresholds.
  • Clear Decision: Proceed, Pivot, or Kill—with evidence to support it.
  • Psychological Readiness: Framework for accepting hard truths.
  • Next Steps: Clear path forward regardless of the decision.
Save Your Progress

Create a free account to save your reading progress, bookmark chapters, and unlock Playbooks 04-08 (MVP, Launch, Growth & Funding).

Create Free Account
Works Cited & Recommended Reading
Unit Economics & Financial Modeling
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

Note: Some links may contain affiliate referrals. We only recommend resources we genuinely find valuable for startup founders.

Turn Theory Into Action

Evaluate your revenue models and cost structure with the LeanPivot AI tool suite.

Start Free Today