Page 20 - The Art of the Start

ChangeThis Assumptions Second, create a comprehensive list of the major assumptions that you are making about the business. These include factors such as: • product or service performance metrics • market size • gross margin • sales calls per salesperson • conversion rate of prospects to customers • length of sales cycle • return on investment for the customer • technical support calls per unit shipped • payment cycle for receivables and payables • compensation requirements • prices of parts and supplies • customer return on investment Continuously track these assumptions, and when they prove false, react to them quickly. Ideally, you can link these assumptions to one of the seven milestones discussed previously. Thus, as you reach a milestone, you can test an assumption. | issue 001.01 | i U | h 20/34 f