Market Viability

The three key viability milestones are essential checkpoints in the lifecycle of a business or project that help determine whether it is sustainable, scalable, and investable. These milestones are especially relevant for startups, entrepreneurs, and new ventures, but they also apply to any business innovation.

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✅ The 3 Viability Milestones

1. Product Viability

• What it means: Whether your product or service works and solves a real problem.
• Key Questions:
  • Does the product function as intended?
  • Does it solve a real customer pain point?
  • Is there demand for the product?
• Indicators:
  • Successful prototype or MVP (Minimum Viable Product)
  • Positive user feedback
  • Low defect or failure rate
• Goal: Prove that your product can exist and deliver value.

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2. Market Viability

• What it means: Whether there’s a large enough market willing to pay for your product.
• Key Questions:
  • Who is the target customer?
  • How big is the market opportunity?
  • Are customers willing to pay for the solution?
• Indicators:
  • Customer acquisition success
  • Market research validation
  • Initial sales or pre-orders
• Goal: Prove that there’s a real market demand and a viable customer base.

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3. Business Viability

• What it means: Whether the business model is sustainable and profitable long-term.
• Key Questions:
  • Can the business scale profitably?
  • Is the cost structure manageable?
  • What is the revenue model and unit economics?
• Indicators:
  • Positive cash flow or path to profitability
  • Sustainable gross margins
  • Scalable operations and distribution
• Goal: Prove that the business can grow and be financially sustainable over time.

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📌 Summary Table

Milestone	Focus	Goal	Key Validation
Product Viability	Product Functionality	Build a working product	Product works, solves a problem
Market Viability	Customer Demand	Validate market fit	Customers want it and will pay
Business Viability	Financial Sustainability	Ensure profitable growth	Business model works at scale

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💡 Why These Milestones Matter:

• They help entrepreneurs and investors understand the stage of development.
• They guide resource allocation — where to focus time, money, and effort.
• They serve as go/no-go decision points before scaling or seeking investment.

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graph TD
    A[Product Development] --> B[Product Viability]
    B --> C{Does the product
work and solve a real problem?}
    C -- Yes --> D[Market Development]
    D --> E[Market Viability]
    E --> F{Is there demand?
Will customers pay?}
    F -- Yes --> G[Business Development]
    G --> H[Business Viability]
    H --> I{Is the business model
profitable and scalable?}
    
    
    C -- No --> J[Improve Product or Pivot]
    F -- No --> K[Test New Market Fit]
    I -- No --> L[Refine Business Model]

    J --> B
    K --> E
    L --> H

    style A fill:#4CAF50,stroke:#fff,color:#fff
    style D fill:#2196F3,stroke:#fff,color:#fff
    style G fill:#FF9800,stroke:#fff,color:#fff

    style B fill:#66BB6A,stroke:#333
    style E fill:#42A5F5,stroke:#333
    style H fill:#FFA726,stroke:#333

    style C fill:#fff3e0,stroke:#333
    style F fill:#fff3e0,stroke:#333
    style I fill:#fff3e0,stroke:#333

    style J fill:#ef9a9a,stroke:#333
    style K fill:#ef9a9a,stroke:#333
    style L fill:#ef9a9a,stroke:#333

    classDef phase color:#fff,fill:#000,stroke:#333;
    class A,D,G phase;

    classDef milestone fill:#424242,stroke:#333,color:#fff;