From idea to business model in five steps

A practical framework for turning a raw idea into a business model you can test, pitch and build on.

1. Describe the problem in the customer's own words. If you cannot, you do not understand it yet.

2. Define who has the problem most acutely. That is your first customer segment.

3. Sketch the solution and the value it creates — in time, money or peace of mind.

4. Decide how you will earn money and what it costs to reach a customer. The numbers do not need to be precise, but they must make sense.

5. List your riskiest assumptions and design the cheapest test for each. Then go out and run them.