How To Identify Your Critical Assumptions

When you are excited about a new business venture it's easy to forget what key factors could make your business fail.

Because only if you are fully aware of the risks in your business can you make smart decisions, how do you identify your critical assumptions?

Start with the most universal ones.

1. What are your monthly operating costs, including salaries, utilities, marketing, insurance and your initial investment to get your business opened?
2. How many months of cash do you have in the bank after your initial opening investment assuming you get no customers?
3. How many customers can you serve with your current business resources?
4. How much would each customer have to pay in order to cover your current expenses?
5. How many customers would you need by the time you run out of runway to cover your entire monthly operating expense?

If you want to brainstorm the other assumptions you may be missing, ping me for coffee.