Test the idea before you sign the lease

Guides

Guides for testing an idea before you commit

Three working guides that let you do a first pass yourself: decide what must be true, check whether the cash lasts, and test whether real buyers respond.

Written by Ali Sedighi, MBALast updated:

These guides teach the method behind our work, in enough detail that you can run a first pass on your own idea this week. Each one is built around a decision, not a theory. Read them in order if you're starting from scratch, or jump to the one that matches your biggest unknown. The examples use invented round numbers so you can follow the arithmetic; always substitute your own.

  • Break-even and cash runway, worked through

    Break-even tells you how many sales cover your costs. Cash runway tells you whether you'll survive long enough to get there. You need both, and this guide shows how to calculate them.

  • The go/no-go feasibility checklist

    Work through these seven steps before you sign a lease or order equipment. Each step either strengthens the case or exposes the assumption that would sink it.

  • How to design a validation experiment that tells the truth

    A good validation experiment asks real buyers to take a real step, judges the result against a pass mark set in advance, and treats the people who respond honestly. Here's how to design one.

The go/no-go feasibility checklist

What it teaches: how to turn a vague idea into a short list of testable statements and decide whether to proceed.

The go/no-go feasibility checklist walks through seven steps: stating the decision in one sentence, listing the three or four deciding assumptions, setting pass marks before looking at evidence, gathering the cheapest strong evidence first, pricing costs with real quotes, running break-even and runway, and writing the verdict down.

Read it first if you've got an idea and a budget but no structure for deciding. It's also useful if partners disagree, because it forces the disagreement onto specific assumptions rather than general enthusiasm or doubt.

The worked example follows a meal-prep kitchen from first idea to written verdict, including a pass-mark table you can copy.

Break-even and cash runway

What it teaches: how many sales you need to cover costs, and whether your cash lasts long enough to reach that point.

The break-even and cash runway guide works through a fictional mobile bicycle-repair service month by month. It shows the calculation for break-even volume and revenue, builds a six-month ramp-up table, and then reruns it with demand 30% slower.

The point it makes is one most owners only learn the hard way: the same business, at the same price and cost, can survive or fail depending purely on how quickly customers arrive. That's why the guide ends with the four levers you can pull if the slow case fails.

Read it if you're confident in the concept but unsure how much money you need, or if your business plan has numbers that nobody has stress-tested.

Validation experiments

What it teaches: how to test real demand with real buyers, honestly, before you commit to the full launch.

The validation experiments guide covers choosing the riskiest assumption, picking the lightest test that gives a real signal, setting a pass mark from your break-even model, and running the test in a way that's fair to the people who respond. It includes a section on consent and privacy rules in Canada, with links to the federal sources, and a two-week starter plan.

Read it once you've done the desk research and want behavioural evidence: deposits, reservations or qualified enquiries, not compliments.

How the guides fit together

The three guides form one loop.

  1. The checklist tells you which assumptions matter and what result would mean go.
  2. The break-even guide turns those assumptions into a cash requirement and a target volume.
  3. The validation guide tests whether real buyers will produce that volume at a cost you can afford.

If the test passes, you update the model with what you learned and write the verdict. If it fails, you change one thing and run the loop again, or you stop, which is often the most valuable result of all.

When a guide isn't enough

The guides cover method. They can't give you an outside view, and an outside view is often what an owner needs most when they've been living with an idea for months.

Consider help if the commitment is large relative to your savings, if the evidence is mixed, or if you need a document that others will scrutinise. Our services page explains which piece of work fits which situation, and pricing shows the published rates. The first 30-minute conversation is free; call, text or email.

Frequently asked questions

Can I use these guides instead of hiring a consultant?

For smaller decisions, yes. The guides cover the same method we use. Where outside help pays off is on large commitments, mixed evidence, or when partners disagree and want a neutral read.

In what order should I read them?

Start with the go/no-go checklist, because it tells you which assumptions matter. Then use the break-even guide to size the cash risk, and the validation guide to test the riskiest assumption.

Are the numbers in the examples real?

No. The examples use made-up round numbers so the arithmetic is easy to follow. Replace them with your own quotes and prices.