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5
Min
Decision Framework
A structured framework for making go/no-go decisions at key milestones throughout the journey.
Decision Framework Philosophy
Building a startup requires hundreds of decisions. This framework provides clear criteria for the most important ones: when to start, when to pivot, and when to stop.
Decision Point 1: Start Development?
Timing: After Pre-Development Validation (Month 1)
โ Green Light Criteria (GO)
100+ waitlist signups from target audience
70%+ of interviews validate the problem
10+ people say they'd pay โฌ99/month
Clear competitive differentiation identified
Founder has 20+ hours/week to commit for 6 months
โ Red Light Criteria (NO-GO)
Fewer than 50 waitlist signups after Month 1
Less than 50% of interviewees validate the problem
No one willing to pay โ everyone wants it free
Incumbent competitors already solving the problem well
Decision Point 2: Launch Private Beta?
Timing: After MVP Development (Month 4-5)
โ Green Light Criteria (GO)
All core features working (auth, listings, access requests, messaging)
No critical bugs in testing
50+ qualified users ready to join beta
20-30 sellers with real listings ready to go live
Support system in place (email or dedicated support hours)
โ Yellow Light (DELAY)
Major bugs still present โ fix before launch
Fewer than 30 beta users ready โ keep recruiting
Fewer than 10 sellers with listings โ seed supply first
Decision Point 3: Scale or Pivot?
Timing: After 6 Months (Month 6)
โ SCALE (Product-Market Fit Achieved)
100+ total users, 50+ active listings
10%+ free-to-paid conversion rate
10+ successful connections, organic growth via word-of-mouth
NPS > 50, users saying "can't live without it"
โ Action: Raise funding, hire team, expand to new geographies/asset classes
โ PIVOT (Traction But Not PMF)
Users engaged but not paying (conversion < 5%)
Strong buyer side, weak seller side (or vice versa)
One feature/segment working well, others not
โ Action: Analyze what's working, double down on that segment/feature, cut what's not
โ STOP (No Path Forward)
Fewer than 50 users after 6 months
Less than 3% conversion to paid consistently
High churn, users don't come back after first visit
Founder burnout, no path to sustainability
โ Action: Gracefully shut down, learn from the experience, move to next opportunity