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CH07 Worksheet: Business Feasibility, P×Qty, and QCD Review

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Source: Chapter 7 “Validating Business Feasibility and the Effective Market” / KM055–KM063 This worksheet transfers the questions and frameworks from KM055–KM063 directly into a fill-in-the-blank format. No new methodology has been added.

1. Checking the Meaning of Business Feasibility (KM055)

  • Is the market size you’re about to present a calculation of “what percentage of the total market,” or is it the result of testing the business logic you designed against real-world conditions?
    • Your answer: ______________________________________________________
  • Why can we capture a portion of that market? Which customers buy, and for what reason?
    • Your answer: ______________________________________________________
  • Through what price and channel does revenue arise, and how much cost and resources are needed to generate that revenue?
    • Your answer: ______________________________________________________
  • Are the business model and revenue model sufficiently concrete before listing TAM, SAM, and SOM?
    • Your answer: ______________________________________________________

2. Distinguishing the Total Market from My Market (KM056)

  • Top-down perspective: Starting from the industry as a whole, what is the total size of this industry, and what growth and competitive trends exist?
    • Your answer: ______________________________________________________
  • Bottom-up perspective: Starting from the customer’s actual purchasing potential, what portion is reachable with the technology, resources, channels, and cost structure you have?
    • Your answer: ______________________________________________________
  • When these two perspectives converge into a single business opportunity, what is the range of the market that remains?
    • Your answer: ______________________________________________________
  • Can this market size be reviewed again as a variable that changes together whenever the business model changes?
    • Your answer: ______________________________________________________

3. Buyer-Defined Market Definition (KM057)

  • Who is the User in this business?
    • Your answer: ______________________________________________________
  • Who is the Buyer (Customer) who actually pays the cost in this business?
    • Your answer: ______________________________________________________
  • Who is the entity that approves the budget? (Individual / corporate purchasing manager or approver / public-sector budget executor)
    • Your answer: ______________________________________________________
  • Does this transaction relationship fall under B2C, B2B, or B2G? How do the number of customers, purchase volume, pricing structure, channels, and decision-making conditions differ accordingly?
    • Your answer: ______________________________________________________

4. Checking the Quantitative Conversion of the Qualitative BM (KM058)

  • What revenue can you explain as arising when a specific quantity (Qty) is sold at a specific price (P)?
    • Your answer: ______________________________________________________
  • How much cost do the key activities and cost structure required to generate that revenue demand?
    • Your answer: ______________________________________________________
  • Is the calculated input cost affordable? If not, which of the following needs to change: customer, product spec, price, or channel?
    • Your answer: ______________________________________________________

5. Checking the 9-Step Effective Market Estimation Process (KM059)

Steps 1–3: Build the hypothesis

  • Idea and environmental analysis: ____________________________________________
  • Market segment and targeting: ______________________________________________
  • Positioning, distribution, and price hypothesis: ________________________________________

Steps 4–5: Confirm reality with QCD (see item 6 for detailed questions)

  • Available-resource review (Q, D) result: ______________________________________
  • Cost-input review (C) result: _________________________________________

Steps 6–8: Narrow down to an executable model

  • Final targeting: __________________________________________________
  • Final positioning and 4Ps (Product, Price, Place, Promotion): __________________________
  • Final BMC: _____________________________________________________

Step 9: Express the market as a number

  • Effective Market size (P×Qty): __________________________________________
  • If this number does not match the business goal (CH01) or the resource conditions, which step should you go back to?
    • Your answer: ______________________________________________________

6. Checking QCD Executability (KM060)

  • Quality: Can you actually produce a product or service at the level the target customer demands?
    • Your answer: ______________________________________________________
  • Delivery: Can you supply it at the scale and timing the market wants?
    • Your answer: ______________________________________________________
  • Cost: On the premise that quality and delivery are achievable, can you produce it at an affordable cost?
    • Your answer: ______________________________________________________
  • Is there any one of the three elements that is not satisfied? If so, which hypothesis (targeting / positioning / distribution / price) do you need to go back to?
    • Your answer: ______________________________________________________

7. Distinguishing Projected P&L from the Effective Market (KM061)

  • How much is your Projected P&L (the amount you can actually sell with resources currently secured, or securable within a set period; close to SOM)?
    • Your answer: ______________________________________________________
  • How much is your Effective Market (the potential area reachable with the current product and BM once additional resources are secured; close to SAM)?
    • Your answer: ______________________________________________________
  • Can you explain these two numbers separately, without mixing them, as answers to “can we survive right now” and “how far can we expand if we secure more resources,” respectively?
    • Your answer: ______________________________________________________

8. Checking P×Qty by Transaction Type (KM062)

  • Does this business fall under B2C, B2B, or B2G?
    • Your answer: ______________________________________________________
  • (If B2C) At what price, how many customers, and how often do they buy?
    • Your answer: ______________________________________________________
  • (If B2B) How do price and quantity move together according to order scale and production method? Can you use Top-down data, such as the production performance of the upstream industry?
    • Your answer: ______________________________________________________
  • (If B2G) Is there a legal obligation for installation or management? From which budget line item, and at what scale, is it executed? Do you approach the public institution through direct sales or a partner channel?
    • Your answer: ______________________________________________________

9. Checking Iterative Validation (KM063)

  • What assumptions underlie the Effective Market size you’ve just calculated?
    • Your answer: ______________________________________________________
  • Which of these assumptions is most likely to change first?
    • Your answer: ______________________________________________________
  • Has any condition among the market, competitive environment, customer behavior, cost, or resources changed recently? If so, which step (1–9) should you go back to and recalculate?
    • Your answer: ______________________________________________________

Note: The Effective Market size derived in this worksheet is not a number fixed as the final answer. The 9 steps are not a sequence you pass through once — they form an iterative validation process in which constraints discovered at a later step loop back to an earlier step and readjust the assumptions.