Go / No-Go Decision Framework
A pre-committed set of thresholds that decide when (and whether) to spend real money. Deciding the rules now, while unemotional, protects you from the two classic mistakes: buying stock too early (excitement) and quitting too early (impatience).
The cardinal rule
Capital follows evidence. Every spend stage below is locked until its trigger trips.
Gate 1 โ "Is there demand?" (trigger the first import)
Read this at the Week 12 checkpoint (and monthly after). Treat as a scorecard, not a single number.
| Signal | Green (Go) | Amber (wait / iterate) | Red (rethink) |
|---|---|---|---|
| Organic sessions/mo | โฅ 5,000 | 1,500โ5,000 | < 1,500 after 4โ6 mo |
| GSC impressions trend | Rising 20%+ MoM | Flat | Falling |
| Buyer-intent keywords in top 10 | โฅ 5 | 1โ4 | 0 |
| Waitlist signups | โฅ 300 | 100โ300 | < 100 |
| Waitlist โ "would pay Rs X" (survey) | โฅ 40% yes | 20โ40% | < 20% |
| Add-to-cart / "notify me" rate | โฅ 4% | 2โ4% | < 2% |
Decision:
- Mostly Green โ GO. Place a small first import (test quantity, see Sourcing-and-Import). Don't over-order.
- Amber โ ITERATE. Improve content, keywords, offer, page conversion. Re-check in 4โ6 weeks.
- Mostly Red after a fair 4โ6 month effort โ NO-GO or PIVOT. Options: pivot positioning (e.g., lead with savings vs. comfort), test paid to see if demand is createable, narrow to a sharper niche (e.g., teens/postpartum), or shelve. You will have spent almost nothing on stock โ this is a successful, cheap "no."
Gate 2 โ "Do the economics work?" (scale spend)
After the first import sells through, before reordering bigger or funding paid ads:
- Contribution margin โฅ 45% after COGS, import, payment, COD/RTO. (Unit-Economics)
- RTO (COD return-to-origin) < 20%. (Payments-and-COD)
- Sell-through of first import โฅ 60% within 90 days.
- CAC < 35% of AOV on first paid tests (if running paid).
Hold all four โ scale (reorder larger, turn on paid, add Daraz). Miss any โ fix it before adding fuel.
Gate 3 โ "Can it become big?" (push toward $1M)
- Repeat purchase / referral measurable and improving (LTV climbing).
- Paid ROAS โฅ 2.5โ3x sustainably.
- Operations (fulfilment, CS, returns) not breaking under volume.
- Then: SKU expansion, channel stacking, and revisit export (the parked phase-2 lever) to reach $1M faster than domestic alone allows. (Million-Dollar-Math)
Pre-committed kill criteria
- After 6 months of genuine content effort, Gate 1 is solidly Red and a paid smoke test can't produce sub-target CAC. The category isn't ready or isn't us โ walk, with capital intact.
- First import RTO > 35% and unfixable โ the COD economics are broken for this product in this market.
Writing kill criteria down in advance is how you avoid the sunk-cost spiral. Revisit, don't rationalize.
Related
SEO-First-Validation-Plan ยท Million-Dollar-Math ยท Unit-Economics ยท Payments-and-COD ยท Sourcing-and-Import