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Testing the Rectangle STRATEGYZER.COM / VPD / TEST / 3.1


Test the most critical assumptions underlying the business model your value proposition is embedded in. Remember, even great value propositions can fail without a sound business model. Provide evidence showing that your business model is likely to work, will generate more revenue than costs, and will create value not only for your customers but for your business.

Provide evidence showing that the way you intend to create, deliver, and capture value is likely to work. Don’t neglect testing your business model

from revenue from those same customers won’t

You can fail even with a successful value proposi-

survive over the long term. Similarly, a company

tion if your business model generates less revenue

will obviously go out of business if resources and

than it incurs costs. Many creators are so focused

activities required to create value are more costly

on designing and testing products and services

than the value they capture. In some markets you

that they sometimes neglect this obvious equation

might need access to key partners who might not

(profit = revenues - costs) resulting from the build-

be interested in working with you.

ing blocks of the Business Model Canvas. A value proposition that customers want is

Design experiments that address the most important things that have to be true for your

worth little if you don’t have the channels to reach

business model to work. Testing such critical

customers in a way they want to be reached.

assumptions will prevent you from failing with a

Likewise, a business model that spends more

great value proposition that customers actually

money on acquiring customers than it will earn


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Military Diet https://www.constantweigh...

Military Diet https://www.constantweigh...