โ† All Action Guides
CAPITAL INTENSITY (10%)

CAPITAL EFFICIENCY.

Validation costs too much. Testing requires full builds. Good ideas die from resource starvation.

$100K
$10K
$200
$0 (conversation)
$500K
Avg failed initiative cost
18mo
Time to first customer
$1K
Target validation cost

THE PROBLEM

High Capital Intensity means it costs too much to test ideas. The organization requires massive investment before learning anything.

๐Ÿ“‹"We need a full business case before we can test"
๐Ÿ“†Months of planning before any customer contact
๐Ÿ—๏ธPilots that require enterprise-grade infrastructure
๐Ÿ’€Ideas killed before testing because "too expensive"
๐ŸŽฐAll-or-nothing launches with no staged validation
๐Ÿ“‰High failure rate on major initiatives

WHY IT HAPPENS

Perfection Bias

Releasing anything less than "ready" feels unprofessional. So nothing ships until it's expensive.

Procurement Theater

Getting budget requires full specifications. Specifications require knowing what to build. Catch-22.

Infrastructure Overhead

Testing anything requires full security, compliance, and IT review. Setup costs exceed experiment value.

Fear of Looking Scrappy

"What will customers think?" Everything must be polished, even tests.

THE FIX

01

Define the Minimum Learnable Experiment

Before building anything, ask: "What's the cheapest way to learn if this works?" Often it's a conversation, landing page, or manual processโ€”not a product.

// Validation ladder

Level 1: Customer conversations (free)

Level 2: Landing page + waitlist ($200)

Level 3: Manual/concierge MVP ($1,000)

Level 4: Automated MVP ($10,000)

Level 5: Scaled product ($100,000+)

02

Create an Experimentation Budget

Set aside dedicated funds for small tests that don't require business cases. "Innovation budget" with fast approval for experiments under $X.

03

Build "Test Infrastructure"

Create a sandbox environment where teams can test quickly without full compliance/security review. Accept that test data isn't production data.

04

Sell Before You Build

Can you get a letter of intent, pre-order, or pilot commitment before building anything? Customer commitment validates better than any prototype.

05

Celebrate Cheap Failures

The goal isn't to avoid failureโ€”it's to fail cheap. A $500 experiment that proves "no" is better than a $500K launch that proves "no."

HOW TO MEASURE PROGRESS

Cost per validated learning
$100K$1K
Time from idea to first customer feedback
18 months2 weeks
Experiments run per quarter
120+
Kill rate at early validation stage
10%70%

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