Two Questions Test Business

A simple but powerful framework for evaluating business opportunities, focusing on two key questions that cut through complexity and avoid over-analysis.

The Two Essential Questions

• Would this be big if it worked?

  • Focus on potential market size and impact
  • Ignore initial feasibility concerns
  • Consider the world-changing potential
  • Think about the end state rather than obstacles

• Can I get customers?

  • Most critical factor for business success
  • Often overlooked by first-time founders
  • More important than product details initially
  • Distribution capability is key

Key Principles

• Avoid over-analysis

  • Don't get caught up in technical feasibility early on
  • Skip detailed financial modeling initially
  • Focus on big picture potential

• Distribution First Mindset

  • Second-time founders obsess over distribution
  • Some successful businesses build distribution first, then figure out products
  • Example: Nelk Boys leveraged existing gas station distribution for new products
  • Having customer access can be more valuable than having the perfect product

Common Mistakes to Avoid

• Over-focusing on product details before distribution
• Getting caught up in technical feasibility too early
• Analyzing too many variables (leads to wrong answers)
• Not having clear customer acquisition strategy

Real World Examples

• Native Deodorant

  • Built profitable business with minimal funding
  • Focused on customer acquisition from day one
  • Profitable on first purchase

• Content Creators

  • Build audience first (distribution)
  • Monetize through products later
  • Often don't need outside capital due to built-in distribution

• Failed Approaches

  • Companies with great products but no distribution strategy
  • Over-funded startups without clear customer acquisition plans
  • Businesses that raise money before proving customer demand