6-Month Validation Window
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Kevin Ryan, a successful entrepreneur behind companies like MongoDB and Business Insider, uses a systematic approach to validating new business ideas.
Core Validation Framework
- Initial investment of $300,000 per project
- 6-month validation window to prove viability
- Uses back-of-envelope math to evaluate potential
- Partners typically fund it together
- Goal is to "feel it out" and see if promising
Project Assessment
- Mathematical evaluation but not overly rigid
- Looking for signs of promise within the timeframe
- Decision point at 6 months to continue or stop
- Focuses on quick validation of core business concept
Alternative Approaches Mentioned
- Atomic Labs takes lighter approach
- Sometimes only spend $50 in 2 months
- More experimental/lightweight validation process
Key Philosophy
- Structured but not overly rigid approach
- Balance of mathematical and intuitive evaluation
- Clear timeframe prevents endless experimentation
- Defined budget creates constraints and focus
- Looking for clear signals of potential within window
This framework provides a systematic way to test business ideas while limiting downside risk and preventing endless experimentation without clear direction.
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.