From promising prototype to viable business: Key metrics

A business is viable when it can be built, serves a real market need, and generates sufficient return on investment to sustain itself.

&nbsp viabilidad se sustenta sobre 3 pilares: la técnica, la comercial y la financiera. Cuando un proyecto los supera, es la confirmación de que existe demanda, su modelo de negocio es rentable y cuenta con la capacidad financiera para ejecutarse.

The technical viability focuses on whether the proposed product or service can realistically be developed from a technological perspective.

In science-based projects, this includes evaluating variables such as technological maturity, measured through Technology Readiness Levels (TRLs), as well as compliance with local and European regulatory requirements.

The second factor is determining whether genuine demand exists for the solution and whether the addressable market is large enough to justify investment. Direct interaction with potential customers is often the most effective way to answer this question.

Tools such as the Tools such as the Business Model Canvas and Lean Canvas can help structure and test these assumptions before significant resources are committed. and Business Model Canvas, o también el Lean Canvas pueden ayudarte a estructurar estas hipótesis antes de comprometer recursos.

Financial viability determines whether the model can attract investment and sustain itself economically. It is important to note that this is not necessarily about immediate profitability. Instead, it requires:

• Securing sufficient liquidity to support technological development before revenues are generated.
• Optimizing the balance between private investment and public funding.
• Assessing attractiveness through indicators such as Return on Investment (ROI), Net Present Value (NPV), and Internal Rate of Return (IRR).

While a business prototype validates that a technology works, a Minimum Viable Product (MVP) determines who is willing to pay for it with minimal investment.

These are two distinct stages, and confusing them remains one of the most common mistakes in science-based projects.

The transition requires testing the business hypothesis against real market conditions by:

• Identifying the priority market segment.
• Defining a specific value proposition.
• Establishing key commercial validation metrics.

The next section focuses on this final area.

A business idea is viable if it passes certain traction and financial sustainability tests.

Not all metrics carry the same weight. In the earliest phases, demand validation and willingness to pay are often the most significant indicators.

It is useful to analyse two complementary layers: one measuring market response and another assessing whether the business can sustain itself.

• The signal layer measures genuine market traction. Indicators include conversion rate, willingness-to-pay rate, Net Promoter Score (NPS), and organic referral rate.
• The business model layer evaluates the long-term sustainability of the operating and financial structure. Indicators include the LTV/CAC ratio, 30-day retention rates, and Time to First Revenue (TTFR).

Let us examine five key indicators and how they are calculated.

The real-interest conversion rate measures how effectively initial curiosity is transformed into a meaningful action. The specific action depends on the business model and might involve making contact, registering, clicking through to a product or service, making a reservation, or another measurable behaviour.

This metric helps distinguish between ideas that attract attention and ideas that generate genuine commitment.
How to calculate the real-interest conversion rate

The willingness-to-pay rate measures the percentage of your audience that is prepared to pay for your solution and the price level they are willing to accept.

It is a critical indicator for validating commercial potential and defining a pricing strategy.

The ratio between Lifetime Value and Customer Acquisition Cost (CAC) compares the value generated by a customer throughout their relationship with your business against the cost of acquiring that customer.

When LTV exceeds CAC, the ratio is healthy and suggests that growth through customer acquisition is feasible. Conversely, when CAC exceeds LTV, the situation becomes problematic because acquiring additional customers only increases losses.

Time to First Revenue measures how long it takes to generate an initial revenue stream following early validation activities.

This revenue might come from a landing page test, a pre-sale campaign, or another form of commercial validation. A short TTFR indicates strong alignment between the market and the business model. A lengthy TTFR may signal a risk of exhausting resources before viability can be clearly demonstrated.

When multiple products or customer segments are tested simultaneously, it can also be useful to calculate an average TTFR.

The Organic Referral Rate measures the percentage of new users or customers acquired through recommendations from existing users without paid advertising.

In the early stages of a deep tech venture, referral rates are typically modest. Even a referral rate of 10-20% can represent a highly encouraging signal.

A high value for this metric often indicates that the solution addresses a genuine need and is beginning to build a strong customer base.

Validating a business idea requires a method centred on people. No validation tool has value unless it ultimately connects to genuine human impact, both for the research team and for the users the solution is intended to serve.

With that in mind, some of the most useful tools include:

• Lean canvas. Allows you to map the business model before building anything.
• TAM (Total Addressable Market), SAM (Serviceable Available Market ) and SOM (Serviceable Obtainable Market) analysis. Helps determine the size of the addressable market and the realistic market segment your solution can capture.
• Early-adopter interviews. Reveal whether the value proposition resonates beyond the laboratory environment. Their effectiveness depends on avoiding biased questions and using appropriate interview protocols.
• A/B tests and smoke tests. Allow you to validate business assumptions without fully developing the product, protecting both time and resources.

Before concluding, it is worth emphasizing that even the best prototypes can fail without a robust methodology. This is where Bolboreta Impulsa&nbspcreates value. Our approach provides personalized support tailored to the project's actual TRL stage, helping transform innovation into demonstrable business value.

If you would like to learn more about how to choose the right growth strategy for your startup and discover how Bolboreta Impulsa supports technology ventures, we invite you to get in touch.