Stage 3

If margins break at scale, the model fails.

Use this stage to test whether revenue, cost, and founder load can support real growth.

Use this before scale, fundraising, new hiring, or committed operating spend.

System Flow

Problem → Product → Model

Problem

Problem–Solution Fit

If the problem is weak, every signal above it misleads.

Product

Product–Market Fit

If users do not return, you do not have product–market fit.

Business Model

Business Model Fit

If margins break at scale, the model fails.

If one breaks, everything above misleads

  • Product signals are invalid without a real problem.
  • Business signals are invalid without real product pull.

Current Stage

Use this stage before scale, spend, or fundraising

Business Model Fit

If the economics depend on founder effort or fragile margins, the model is not ready.

When to use

After product pull exists and before you treat growth as durable.

How ProductBooks works

  • Run the evaluator.
  • Identify what still scores zero.
  • Generate the missing evidence.
  • Re-run the same stage before moving on.
Then generate the Fit Report

What this stage decides

Keep the decision boundary narrow. Everything outside it stays outside.

Decides

Whether unit economics support sustainable operation.

Does not do

Optimise pricing strategy.

Decides

Whether costs hold as revenue grows.

Does not do

Improve margins for you.

Decides

Whether revenue persists beyond founder effort.

Does not do

Help you "pass".

Evidence Rules

Strict rules only. No interpretation layer.

What counts

  • Observed unit economics before projections.
  • Traceable acquisition cost before blended assumptions.

What fails fast

  • Durable revenue before one-off selling.
  • Missing proof still blocks scale confidence.
View Evidence Definitions

Generate Missing Evidence

Operators generate proof. They do not soften the verdict.

Unit Economics Reality Operator

GENERATE

Measure whether each customer produces positive contribution margin from observed data.

Used to improve

The scoreable gaps this evaluator surfaced.

CAC Traceability Operator

GENERATE

Trace acquisition cost back to specific customers and acquisition actions.

Used to improve

The scoreable gaps this evaluator surfaced.

Revenue Durability Operator

GENERATE

Measure whether revenue persists without repeated manual sales effort.

Used to improve

The scoreable gaps this evaluator surfaced.

Founder Dependency & Load Operator

GENERATE

Measure whether the model still holds when the founder steps out of the loop.

Used to improve

The scoreable gaps this evaluator surfaced.

Run Business Model Fit

Start with evidence you can show. Missing proof still scores zero.

What to do next

Once the model holds, consolidate the system into one report.

Use the Fit Report Generator to combine stage verdicts, evidence gaps, and next actions into a single system view.

Go to Fit Report