At this stage, you’re not proving ARR growth curves — you’re showing that your money logic makes sense. Investors and advisors want to see that you’ve thought through how dollars move in and out: who pays, how much, how often, and why.
Don’t overcomplicate. It’s less about exact numbers, more about showing you understand value exchange and market norms.
Purpose
- Clarify who pays (user vs. buyer, consumer vs. enterprise).
- Define your pricing model hypothesis (subscription, usage, one-time, hybrid).
- Show your sales cycle logic (from first touch → dollars).
- Flag churn, seasonality, or risks early.
When to Complete
- After Concept & Vision are clear and a working model exists.
- Before pitching angels or accelerators (they will ask: how does this make money?).
- Before investing in go-to-market or financial models.
Proof Sections
Pricing & Packages
- What’s the core structure? Subscription, one-time, usage-based?
- Why is this model aligned with value delivery?
- B2B SaaS: $49/mo starter, $99/mo growth — tiers map to # of users or features.
- B2C CPG: $7.99 per unit retail, $29.99 4-pack DTC, aligns with grocery category norms.
- Services: $500 setup, $100/hr ongoing — fits project-based delivery.
Sales & Delivery Cycle
- How long from interest → money in the door?
- What friction points exist?
- B2B SaaS: Demo → pilot → contract → onboard (4–6 weeks).
- B2C CPG: Point-of-sale is instant; retail shelf placement takes months.
- Services: 1 call → signed contract → first project delivered.
Retention & Renewal
- What does repeat revenue look like?
- Any seasonality, stickiness levers, or contract terms?
- B2B SaaS: Aim for 80% annual renewal; value reports drive stickiness.
- B2C CPG: 60% of dog owners repeat monthly; subscription auto-ship is the lever.
- Services: 40% of clients expand into new projects within 90 days.
Monetization Pathways
- Beyond core price, what upsells, add-ons, or usage fees exist?
- B2B SaaS: API integrations, advanced analytics.
- B2C CPG: Bundles, seasonal flavors, branded merch.
- Services: Training workshops, maintenance retainers.
Alignment with Roadmap
- Which features or expansions unlock higher tiers or new segments?
- B2B SaaS: Team analytics unlock $199/mo business plan.
- B2C CPG: Larger format (12-pack) opens wholesale.
- Services: Codified playbook enables franchise/licensing.
Execution Requirements
- 1–2 sentence Pricing Hypothesis (what you’ll charge, why).
- 2–3 sentences on Sales/Delivery Cycle (time to revenue).
- 1–2 sentences on Retention Expectations (repeatability, seasonality).
- 3–5 bullets on Upsell or Monetization Paths.
Domain Adaptability: Specialized
- SaaS: MRR/ARR, land-and-expand, support costs.
- CPG: unit economics, distributor/retail margins, subscription boxes.
- Services: billable hours, project retainers, upsell training/consulting.
Expected Output
- 1–2 paragraphs (Pricing → Cycle → Retention).
- Optional simple table (tiers/packages or revenue pathways).
- Link to prototype pricing sheet or back-of-napkin model.
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Optional Enhancements (Pro-Level Execution)
- Benchmark pricing vs. competitors in category.
- Run a willingness-to-pay survey (Van Westendorp style).
- Create a 1-page unit economics sheet (COGS, margins, channel fees).
- Capture early customer voice: “I’d pay $X for this.”