A workflow in 5 steps
Is My Business Idea Viable? — Run These 5 Numbers
Most business ideas fail not because the product is bad, but because the math does not work. This workflow forces you to answer the five financial questions that determine viability — before you invest serious time or money.
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Step 1: Find your break-even volume
How many units, customers, or subscriptions do you need to sell before the business stops losing money? If this number is unrealistically high, rethink pricing or cost structure.
Open the Break-Even Units Calculator -
Step 2: Calculate your runway
At your expected burn rate, how many months can you operate before running out of cash? Model conservative, base, and optimistic scenarios.
Benchmark: Seed-stage median runway is 18 months.
Open the Startup Runway Calculator -
Step 3: Forecast revenue
Project revenue from organic growth, pipeline conversion, and deal size. Use the conservative scenario for decisions — optimism is for pitch decks, not cash planning.
Open the Sales Forecast Calculator -
Step 4: Check ROI on your investment
What return can you expect on the time and money you invest? And how long until you see it? An investment with 200% ROI over 3 years is great if you can afford to wait.
Open the ROI + Payback Period Calculator -
Step 5: Estimate potential value
What could this business be worth if it succeeds? Revenue multiples, SDE multiples, and EBITDA multiples give you a range to evaluate the opportunity.
Benchmark: Private SaaS median revenue multiple is 7x (SaaS Capital).
Open the Business Valuation Calculator
Questions people ask
What if my break-even volume is very high?
Either raise your price, lower your costs, or narrow your target market. A high break-even is a signal, not a death sentence — but it means the current model needs adjustment.
How accurate are these projections?
They are estimates based on your assumptions. The value is not precision — it is forcing you to make those assumptions explicit and testable.
Should I use optimistic or conservative numbers?
Make decisions on the conservative case. If the business works under conservative assumptions, optimistic scenarios take care of themselves.
Part of Bootstrapped growth: See when cash runs out, what you need to break even, and how to grow without funding.