A critical hypothesis is a fundamental assumption that must hold true for a business model to succeed. These hypotheses are pivotal because they address the core elements of your business, such as customer needs, value propositions, feasibility, and viability. Testing these hypotheses helps entrepreneurs validate their business ideas, reduce risks, and make informed decisions.

Market Hypotheses:

• Customer Segments: Assumptions about who your target customers are.
• Customer Needs: Assumptions about the specific problems or needs your customers have.

Value Proposition Hypotheses:

• Unique Offering: Assumptions about what makes your product or service unique.
• Benefits: Assumptions about how your offering addresses customer needs.

Feasibility Hypotheses:

• Technical Viability: Assumptions about whether your solution can be built with current technology.
• Operational Capability: Assumptions about your ability to deliver the solution.

Viability Hypotheses:

• Revenue Streams: Assumptions about how your business will generate revenue.
• Cost Structure: Assumptions about the key costs involved in running your business.

Growth Hypotheses:

• Channels: Assumptions about how you will reach and acquire customers.
• Retention: Assumptions about how you will keep customers engaged.

Netflix example

Market Hypothesis:

• Assumption: Consumers are interested in renting movies online and having them delivered to their homes.