Which business model turns this opportunity into compounding value?
Business Alignment
| Question | Answer |
|---|
| Venture name | [name] |
| Validated idea (from DISCOVER) | [JTBD statement] |
| 5P composite score (from VALIDATE) | [score] |
| What conviction level is model selection? | HIGH / MEDIUM / LOW / NONE |
| What would make the wrong model fatal? | [risk] |
Model Selection Matrix
Map problem type to delivery capability. Select 2-3 candidates.
| Dimension | Your Situation |
|---|
| Problem type | One-time / Recurring / Platform / Marketplace |
| Revenue model | Transaction / Subscription / Usage / Commission |
| Delivery | Service / Product / Hybrid / Automated |
| Scale mechanism | People / Software / Network / Content |
Candidate Models
| # | Model | Fit Score (1-5) | Why It Fits | Why It Might Fail | Conviction |
|---|
| 1 | [e.g. Productized Service] | | | | |
| 2 | [e.g. SaaS] | | | | |
| 3 | [e.g. Marketplace] | | | | |
XV Principles Evaluation
Score each candidate against 15 business principles across 5 lifecycle stages. Mark violations explicitly.
Foundation (principles 1-3)
| Principle | Candidate 1 | Candidate 2 | Candidate 3 |
|---|
| Unit economics viable | /5 | /5 | /5 |
| Problem validated | /5 | /5 | /5 |
| Founder-market fit | /5 | /5 | /5 |
Value Creation (principles 4-6)
| Principle | Candidate 1 | Candidate 2 | Candidate 3 |
|---|
| Clear value proposition | /5 | /5 | /5 |
| Differentiation real | /5 | /5 | /5 |
| Willingness to pay proven | /5 | /5 | /5 |
Growth (principles 7-9)
| Principle | Candidate 1 | Candidate 2 | Candidate 3 |
|---|
| Scalable acquisition channel | /5 | /5 | /5 |
| Network effects possible | /5 | /5 | /5 |
| Organic growth potential | /5 | /5 | /5 |
Protection (principles 10-12)
| Principle | Candidate 1 | Candidate 2 | Candidate 3 |
|---|
| Switching cost or moat | /5 | /5 | /5 |
| Data advantage compounds | /5 | /5 | /5 |
| Regulatory or IP protection | /5 | /5 | /5 |
Navigation (principles 13-15)
| Principle | Candidate 1 | Candidate 2 | Candidate 3 |
|---|
| Measurable success criteria | /5 | /5 | /5 |
| Pivot path exists | /5 | /5 | /5 |
| Alignment with founder values | /5 | /5 | /5 |
XV Summary
| Candidate | Total (/75) | Violations | Selected? |
|---|
| [Model 1] | | [list any score < 2] | |
| [Model 2] | | | |
| [Model 3] | | | |
Feedback Loop Map
For the selected model, identify at least one positive feedback loop.
Positive Loops (value compounds)
| Loop Name | Trigger | Amplifier | Limiter |
|---|
| [e.g. Content flywheel] | [what starts it] | [what accelerates it] | [what caps it] |
| | | |
Negative Loops (value leaks)
| Loop Name | Trigger | Drain | Intervention |
|---|
| [e.g. Support overload] | [what starts it] | [where value goes] | [how to stop it] |
| | | |
Sentence Test
"We use a [model] because [reason]. Each [unit] creates value for the next through [feedback loop]. The moat is [protection mechanism]."
Questions
If the selected model has the highest XV score but the weakest feedback loop, is the score lying — or is the loop not essential at this stage?
- Which principle violation in the selected model are you choosing to accept — and what would change your mind?
- Does the positive feedback loop actually compound, or does it just repeat?
- What would an outsider build instead of choosing from your three candidates?