In the simplest terms, your goal is to close the gaps in the Business Model Analysis section. The size of the gaps within each of the Business Model vectors gives you a way to visualize the distance you still need to cover toward that goal. 

In general, it is recommended to close the Business Model gaps in sequential order. For example, if there are gaps in the Problem/Customer Validation section and Traction section, focus on Problem/Customer Validation activities first. 

The business model assumptions depend on each other, so getting your most foundational assumptions tested and validated before building more complexity into your model will allow you to move faster with greater accuracy.

However, it’s important to note that each Fluency Score measures a single business model. Some companies are an umbrella for two business models — for example, a consulting business and a direct to consumer e-commerce business. In that case, our clients often chose to measure the business model which promises to be the future of the company, or perhaps the one with the most potential to scale. Measuring both business models is also something we do, as that’s simply two separate scores. In these cases, two scores keep the risk factors clearly separated for the business entity to make smart decisions that further their goals.

There are three risk vectors in the Business Model Analysis section:

If your Validation section is below 80%, there is additional work to do in de-risking assumptions you have about the problem you are solving and/or the customer who experiences this problem.

It is recommended to work to resolve these risks before tackling the Traction or Growth Strategy vectors.

Why?

Everything you believe to be true about the problem you are solving and the customer you are serving will be baked into the solution you offer them. Missing something foundational about how your customers experience or perceive the problem will likely cause additional challenges when you try to sell your solution to them.

Conversely, getting extremely clear – through learning directly from customers – about how they experience and perceive the problem –  will help you build and sell the right thing to them with greater clarity and ease.

If your Validation vector is 80% or higher, congrats! 

Even if this vector is not at 100% complete, it is recommended that you move on to a riskier assumption in your business model. That may be Traction or Growth Strategy, depending on the completion of those vectors within your score.

Clients who order a single Fluency Score for a company see enormous value in that single report. However, tracking companies over time unlocks the true power of this data tool.

Multiple Fluency Scores for a company start to draw a trend line for that company, illustrating their progress and tracking how inflection points (programming, resources, investment) impact them.

We recommend requesting multiple Fluency Scores throughout your subscription (included) because businesses are constantly growing and evolving. Some clients choose to order pre- and post-program scores. Others prefer to set a cadence of scores quarterly to be able to communicate company progress with third-party objective data.

Because scores are a snapshot in time they are no longer “fresh” after three months. The measure of business model risk should change in that amount of time.

Validation Recommendations

Developing a business model based on market-tested assumptions about the problem and customer are critical for success in all early stage companies.
Here are three resources Fluent recommends if you are interested in leveling up your skills in this area:

• Running Lean, by Ash Maurya (Amazon link)

• Crossing the Chasm, by Geoffrey A. Moore (Amazon link)

• Focus Framework (especially Chapter 1), by Justin Wilcox

In this vector, The Fluency Score measures the willingness of your target customer to buy your particular solution. If you have a gap in this vector, go make (more) sales!

Traction Recommendations

Testing and understanding your customer’s willingness to buy your proposed solution is also critical to reaching Product-Market Fit. 
Here are two resources Fluent recommends if you are interested in leveling up your skills in this area:

• Testing Business Ideas, by David Bland (Amazon link) 

• Monetizing Innovation, by Ramanujam Tacke (Amazon link)

If you took the earlier advice and worked to de-risk the first two vectors (closing the gaps) before focusing on growth, you’re now in a great place to tackle this hardest of challenges, building a repeatable, scalable process for growth. 

(If you haven’t closed the gaps in the first two vectors, it is strongly recommended to ignore popular advice to grow at all costs and instead focus on those earlier gaps.) 

Just with the other two vectors, building a growth strategy involves running experiments to learn from customers – focusing on figuring out your sales funnel, distribution strategy, tracking all of your metrics, and optimizing for an efficient conversion through the funnel over raw acquisition numbers.

Growth Strategy Recommendations

Moving from the first few sales to a repeatable, scalable growth strategy is the final stage of achieving Product-Market Fit. Growth strategy isn’t about “growth hacking” or gimmicky marketing tactics. It’s about understanding the engine for growth that moves your company beyond the Herculean effort of your founding team into a machine that regularly and predictably creates value for your customers and revenue & profits for your company.
Here are three resources Fluent recommends if you are interested in leveling up your skills in this area:

• Scaling Lean, by Ash Maurya (Amazon link)

• Traction, by Gabriel Weinberg (Amazon link)

• Predictable Revenue, by Aaron Ross and Marylou Tyler

The Velocity vectors of your score work differently than the Business Model vectors. 

With the Business Model vectors, moving through a logical progression is recommended. For the Velocity velocity vectors, it is recommended to increase both Speed and Focus at the same time, with as much urgency as you can. 

These are your strongest predictors of success.

Focus: The vector answers the question on how and where the company is focused related to testing and resolving business model risks. 

Speed: The vector visualizes the speed with which the company is testing and resolving business model risks. 

With limited time and resources, you can further de-risk your startup by focusing those resources on the right risks at the right time. Within the methodology of Lean Startup, focusing on your riskiest assumption – the component of your business model representing the greatest risk if you are wrong – is the fastest way to systematically and efficiently reach Product-Market Fit.

Your Fluency Score report is your very best tool for determining where to focus. 

Expected Focus vs Actual Focus

The Fluency Score algorithm, by calculating the degree of completion across the three business model vectors, provides insight into where the riskiest assumption in your company’s business model lies. This is reported as the Expected Focus.

At the same time, the Fluency Score algorithm also measures and reports on where your company is actually focusing company time and resources. This is reported as the Actual Focus.

Ideally (in most cases), these two fields in the Focus section match. 

As with all parts of the Fluency Score – there is NOT a right or wrong answer or good or bad score. It is just a real-time analysis of what is true in the company right now. As the leader of your company, you can use this analysis to determine a new strategic path or decide when/if you want to address any remaining unresolved risks.

Start with Problem-Customer Validation and close that gap. Then close the gap in Solution-Market Demand. Save Growth Strategy for last, once you have a sufficiently validated the first two vectors.

If the Focus fields don’t match because you are working on a different business model vector than expected:

This is a promising and easily addressed scenario. Often, early stage companies get pulled in a lot of directions. This is a great opportunity to re-focus and rapidly start testing assumptions in the Expected Focus area to, as quickly as possible, close those remaining gaps identified by the Fluency Score.

If the Focus fields don’t match because you are not working on one of the business model vectors:

Sometimes companies aren’t working on business model development because they are deeply focused on product development, fundraising, other operational/administrative tasks, or aren’t actively working on the business at all. 

Depending on the specific situation in your company, it might be completely appropriate to have set aside work on business model development for a period of time. Reflecting on why there is a mismatch between expected and actual focus can lead to strategic leadership decisions to either continue on the current course or to re-allocate resources toward business model development. 

Your most important job as a startup founder is to figure out a business model that works before you run out of money, time, resources, or enthusiasm. 

A “perfect” score on the Speed vector is 1750. This is achievable by any company at any stage of business development. It’s not just for growth stage companies with a large team.

If you have a gap in the Speed vector, it means there is an opportunity to more quickly run business model experiments. This is especially important when there are significant gaps in the Business Model Analysis section.

You may be thinking, “But I’m already doing as much as I possibly can! I wear all of the hats! I can’t go any faster.”

You are not alone. So many entrepreneurs, in the early stages of building their company, feel this way. The truth is there really isn’t enough time to do everything.

The Fluency Score Speed vector isn’t measuring the speed of all activity in your business. It’s measuring the speed of business model development – the work you and your team are doing to achieve Product-Market Fit. 

If your score in this vector is lower than you would have liked, it is recommended that you find ways to prioritize running the experiments needed to resolve remaining risks in the business model as quickly as possible. 

Your first Fluency Score is just a snapshot in time, describing your journey to Product-Market Fit today.

The next time you do a Fluency Score, your score will show the progress you’ve made, based on what you’ve learned in the market from customers and how fast and focused you have been on business model development.

Your current score is considered “fresh” for three months. That’s usually enough time for a company to make and show progress when they complete the Fluency Score process again. You may be asked to do this by an organization you are working with.

Over time, your Fluency Score dashboard will show the combination of your Fluency Scores demonstrating your company’s progress and the milestones you add to your timeline. Together, they tell a compelling story about the company you are building.

Your Fluency Score report is shared only with you and, if applicable, the organization that requested this data on your behalf, which you authorized during the data collection process.

You may also get requests to share your Fluency Score data with other funders or organizations interested in learning more about your company, or if you already work with them, adding your data to their Fluency Score portfolio. You always have the option to approve or deny these requests.