Chapter 0 of 12

Executive Summary

The Architecture of Viability in the Modern Venture Landscape.

Playbook Chapters
What You'll Learn By the end of this chapter, you'll understand why feasibility is the "viability gate" for your startup, what's changed in 2026 that makes this stage critical, and how to approach business model design with engineering rigor.

The Most Dangerous Phase

You've validated the problem. Now comes the question that kills most startups: Can you actually build a business around it?

The transition from a validated problem to a sustainable business is where good ideas go to die. Not because the problem wasn't real—but because the economics didn't work. Playbook 03 is about making sure that doesn't happen to you.

The Trap

"We validated the problem! People want this! Let's build it and figure out the business model later."

Result: 18 months later, you have users who love the product but a business that loses money on every transaction.

The Discipline

"Before we write a line of code, let's prove the business model works on paper. If the unit economics don't pencil out, we pivot now—not after launch."

Result: You either build something profitable or you save yourself years of grinding on a doomed model.

The Viability Gate

In the LeanPivot methodology, Feasibility is the checkpoint that prevents you from deploying capital into ventures that have desirability but lack structural viability. It's not enough that people want your product—you need to prove you can deliver it profitably.

The Feasibility Filter

Desirability

Do they want it?

Validated in Playbook 02

Viability

Can we make money?

This Playbook

Feasibility

Can we build it?

This Playbook

What's Changed in 2026

The startup environment has fundamentally shifted. The playbook that worked in 2020 will get you killed today.

Capital Efficiency

The era of "growth at all costs" is over. Investors demand proof of sustainable unit economics before the first line of production code is written.

Translation: You can't subsidize your way to success anymore.

Algorithmic Scrutiny

Cheap capital is gone. Negative unit economics that were once "investable" are now unfundable. VCs want path to profitability, not hockey sticks.

Translation: Your financial model matters from day one.

Generative AI Risk

AI introduces "probabilistic risk" (non-deterministic outputs) and "hardware-like" cost structures (inference costs). Old SaaS economics don't apply.

Translation: AI startups need a completely new feasibility framework.

The AI Margin Trap

Traditional SaaS enjoyed 80%+ gross margins. AI-native products often have 40-60% gross margins due to inference costs. If you're building with AI, your entire financial model needs recalculation.

What This Playbook Covers

By the end of this playbook, you'll have a complete feasibility analysis that answers:

Chapter Question Answered Output
Revenue Architecture How will we capture value? Validated pricing model
Cost Structure What will it cost to deliver? Burn rate scenarios
Unit Economics Do the numbers work? LTV:CAC projections
Operational Feasibility Can we actually build and support this? Technical risk assessment
Risk Mitigation What could kill us? Risk matrix with mitigations
Go/No-Go Decision Should we proceed to MVP? Viability score and decision

The Goal

The goal is not merely to build a product. It's to engineer a business model that is:

  • Financially viable: The unit economics work at scale
  • Operationally feasible: You can actually deliver what you're promising
  • Defensibly robust: You have competitive advantages that protect the model
The Mindset Shift

In Playbook 02, you were a detective—uncovering customer pain. In Playbook 03, you're an architect—designing the structure that will support your entire business. The skills are different. The rigor is higher. The stakes are real.

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Works Cited & Recommended Reading
Unit Economics & Financial Modeling
SaaS Metrics & Benchmarks
  • 7. SaaS Trends 2025-2026: 25 Definitive Trends Shaping the Industry. Modall
  • 8. The Great SaaS Price Surge of 2025: A Comprehensive Breakdown. SaaStr
  • 9. SaaS gross margin explained: What it is, and why it's important. Stripe
  • 10. SaaS Gross Margin Benchmarks and How To Increase Yours. Lighter Capital
  • 11. 2025 SaaS Churn Rate: Benchmarks, Formulas and Calculator. Vena Solutions
  • 12. How to Compare CAC Benchmarks by Industry. Phoenix Strategy Group
  • 13. How I Calculate the CAC Payback Period. The SaaS CFO
  • 14. The Rule Of 40: How To Calculate And Use It For SaaS. CloudZero
Pricing Strategy & Research
  • 15. What Is A Hybrid Revenue Model? Definition, Types, Benefits. Marketplacer
  • 16. How To Use The Van Westendorp Price Sensitivity Meter. SurveyMonkey
  • 17. How To Price Your Product: Van Westendorp Pricing Model. Forbes
  • 18. Van Westendorp Price Optimization Using LimeSurvey. LimeSurvey
  • 19. Using Conjoint Analysis for Pricing Research. Qualtrics
  • 20. Understanding Conjoint Analysis in Market Research. LimeSurvey
AI Costs & Unit Economics
  • 21. AI Pricing: How Much Does AI Cost in 2025? Monetizely
  • 22. The Best Cheapest AI Inference Services of 2025. SiliconFlow
  • 23. Welcome to LLMflation - LLM inference cost is going down fast. Andreessen Horowitz
  • 24. Avoiding The Looming AI Unit Economics Crisis. Moreland Connect
  • 25. Beyond Benchmarks: The Economics of AI Inference. arXiv
Burn Rate & Cash Management
  • 26. What is burn rate? What startups need to know. Stripe
  • 27. The Bill Gurley Chronicles: VCs, Marketplaces, and Early-Stage Investing. Macro Ops
Feasibility & Risk Assessment
  • 29. AI Project Feasibility Checker. LaSoft
  • 30. Technical Feasibility Study & Risk Assessment Framework. Incurvo
  • 31. Startup feasibility: How to know if my startup idea is good. Business Model Hacking
  • 32. Startup Evaluation Checklist: Essential Investment Criteria. Qubit Capital
  • 33. What Is a Risk Matrix? [+Template]. Atlassian
  • 34. How to Run Pre-Mortem Exercises [Templates Included]. Atlassian
Regulatory & Compliance
  • 35. EU AI Act Compliance Checker. EU AI Act
  • 36. President Trump Signs EO to Stop State Regulation of AI. Ogletree
  • 37. Executive Order Limiting State Power to Regulate AI. K&L Gates
  • 38. How 2025 state legislative sessions grew the AI patchwork. Engine
  • 39. CCPA Requirements 2026: Complete Compliance Guide. Secure Privacy
Templates & Frameworks

Note: Some links may contain affiliate referrals. We only recommend resources we genuinely find valuable for startup founders.

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