UnderX Period underwear ยท Pakistan ยท review build

Go / No-Go Decision Framework

๐ŸŽฏPurpose

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

๐ŸšจDo not import inventory until the Stage-1 gate is met.

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 โ‰ฅ 5,000 1,500โ€“5,000 < 1,500 after 4โ€“6 mo
GSC impressions trend Rising 20%+ MoM Flat Falling
Buyer-intent keywords in top 10 โ‰ฅ 5 1โ€“4 0
Waitlist signups โ‰ฅ 300 100โ€“300 < 100
Waitlist โ†’ "would pay Rs X" (survey) โ‰ฅ 40% yes 20โ€“40% < 20%
Add-to-cart / "notify me" rate โ‰ฅ 4% 2โ€“4% < 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 4โ€“6 weeks.
  • Mostly Red after a fair 4โ€“6 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:

โ—The four numbers that must hold
  • Contribution margin โ‰ฅ 45% after COGS, import, payment, COD/RTO. (Unit-Economics)
  • RTO (COD return-to-origin) < 20%. (Payments-and-COD)
  • Sell-through of first import โ‰ฅ 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 โ‰ฅ 2.5โ€“3x 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

โš ๏ธWe agree NOW to stop if:
  • 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