A sequence of 5 steps for validating business ideas/models. It is named pyramid, because each step builds upon the steps before.
The steps are:
- Customer Segment
- Relevant Problem
- Accepted Solution (→Problem-Solution-Fit)
- Viable Channel
- Monetization (→Product-Market-Fit)
Whenever a step is validated, all steps with a smaller number are validated as well. E. g.: if your customers can imagine to use your prototype in reality and pay money for it, they must have a relevant problem.