23
Oct
2024
Analytics for...
Business Model Viability
Business Model Viability (BMV) assesses how effectively a company can or does generate, deliver, and capture value in a sustainable and scalable way. It is a central determinant of success in investment analysis, strategic planning, and business diagnostics. The resulting Business Model Viability Index (BMVI) provides a composite measure integrating financial performance, customer fit, operational capability, resource leverage, and strategic resilience.
What We're Measuring
Business Model Viability assesses how well a company’s business model is structured to generate sustainable value over time.
It examines financial fundamentals, cost structure, pricing logic, customer relationship strength, operational design, and partner dynamics.
This determinant ensures the business model is not just attractive on paper, but also scalable, resilient, and aligned with real-world conditions.
How We Analyze It
We break down the business model into key dimensions—Revenue Reliability, Cost Sustainability, Customer Retention, Pricing Strategy, Operational Flexibility, and Strategic Partnerships.
Each area is assessed using targeted metrics such as Gross Margin Stability, Customer Lifetime Value (CLV), Repeat Purchase Rate, Pricing Elasticity, and Delivery Efficiency.
We apply a combination of scoring models, stress tests, and cross-sectional benchmarking to reveal strengths, weaknesses, and long-term viability signals.
What It Tells You
We often use BMV as a diagnostic tool as it covers most aspects of how the business performs.
A viable business model signals that the company can generate repeatable profits, retain and grow its customer base, and withstand external shocks.
If weak, it often points to fundamental flaws in customer fit, pricing strategy, or operational scalability.
This determinant helps businesses pivot early, investors assess risk accurately, and managers identify which parts of the business model need redesigning for long-term success.