Test If Your Idea is Worth Pursuing
While a Lean Canvas is a great way to deconstruct your early stage idea into a more coherent business model story, your stakeholders (aka investors or budget gatekeepers) struggle to see what you see.
They are in the business of getting a return on their investment, and a business model story (even with early customer validation) just doesn't cut it for them.They often push you towards building a financial forecast as a next step.
Anyone who's been to business school knows that the best spreadsheets get funded.
So you start off with a spreadsheet template and spend countless hours punching in numbers with the goal of creating an ambitious, yet just-believable model.
But like a business plan, the financial forecast takes too long to create and you are left with a big spreadsheet that masks your riskiest assumptions.
Within all these numbers, are just a handful of key inputs that drive the entire model. If these assumptions fall apart, the entire model falls apart.
These inputs (not the outputs) are what you really need to focus on...
The Traction Model does for the financial forecast what the Lean Canvas does for the business plan.
It surfaces the signal from the noise.
You start with a handful of key inputs like your minimum success criteria, pricing model, and customer lifetime assumption and using a quick back-of-the-envelope calculation,
The entire process takes 5 minutes versus 5 days and you are left with a actionable model that is easy to communicate and easy to test.