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The Business
Validator

Stop launching businesses on a hunch. Paste this prompt into Perplexity’s Research mode with your idea, walk away for a few minutes and come back to real market data, named competitors and an honest GO / WAIT / NO-GO verdict.

Why I Built This

I’ve started at least 7 businesses. Two are successful enough that I quit my full-time job at Meta six years ago. The other five failed, and they cost me months of my life and thousands of dollars I’ll never get back. Every one of those failures had warning signs I could have seen before I built anything, if I had spent 30 minutes on real research. This prompt is the research I wish I’d run before each of those five.

Perplexity’s Research mode (it used to be called Deep Research) runs many searches, reads the sources and writes a full report. Most runs finish in under 3 minutes, and some take 4 to 5. Free accounts get a limited number of runs, and you can export the report as a PDF. (Perplexity Help)

Run It In 60 Seconds
  1. Sign in at perplexity.ai. A free account works.
  2. Switch to Research. In the search box, open the mode selector and pick Research.
  3. Fill in the prompt. Copy it below and replace every [bracket] with your real details. The more specific your customer, the better the report.
  4. Send it and walk away. It’s doing real research, so give it a few minutes.
  5. Read the verdict first, then the full report. Export it as a PDF so you can reread it later.
The Prompt
The Business Validator
You are my business idea validator. I'm about to describe an idea I'm considering building. Research it and give me an honest, data-backed assessment of whether it's worth pursuing. Don't flatter me and don't hedge. If the idea is bad, say so plainly. That's the kindest thing you can do. === MY IDEA === What I want to build: [Describe the product or service in 2-3 sentences. Be specific. Not "an app for fitness" but "a subscription app that gives 1:1 video coaching to women over 40 trying to build muscle."] Target customer (be exact): [Who specifically buys this? Demographics, role, life stage, the moment they'd need it. Avoid "everyone" or "small business owners."] Business model: [How do I make money? Subscription, one-time purchase, marketplace fee, ads, service hours?] Estimated price point: [What I'd charge, e.g. "$49/month", "$2,500 one-time" or "15% take rate"] My background and assets: [Relevant skills, network, existing audience, capital available, hours per week I can commit.] === RESEARCH FRAMEWORK === Investigate and cover ALL of the following. Use real, current sources and cite everything with direct links. 1. MARKET SIZE AND TRAJECTORY - Estimated total addressable market (TAM) for this category - Growth over the last 3 years, and whether the market is expanding, flat or shrinking - Trends shaping demand in the next 24 months (regulatory, demographic, tech, cultural) 2. COMPETITIVE LANDSCAPE - 5-10 direct competitors. Name and link each one, with: - Pricing model - Approximate scale (revenue, users or funding stage, if public) - What they do well - What they're missing or weak at - 3-5 indirect competitors or substitutes (what customers use TODAY to solve this) - Whether the market is winner-take-all, a few big players, or fragmented 3. CUSTOMER DEMAND SIGNALS - Subreddits, Facebook groups, Discord servers and forums where my customer actually gathers (with links) - Real complaints people post about the existing options (quote 3-5, with links) - Search interest trends for the main keywords (Google Trends or comparable data) - Whether there's an active "someone please build this" voice in the market, or silence 4. PRICING AND ECONOMICS - What target customers pay TODAY for the closest equivalent - How price-sensitive this category is - Typical gross margins for this kind of business - Whether my price is realistic, too low or too aggressive 5. DISTRIBUTION AND GO-TO-MARKET - The 2-3 channels where competitors actually get customers (paid ads, SEO, partnerships, referrals, sales) - Typical customer acquisition cost (CAC) in this space - Organic channels that work for this audience - Whether anyone with a budget can compete, or whether distribution is locked up 6. REGULATORY, LEGAL AND TECHNICAL LANDMINES - Licenses, certifications or compliance required (state, federal, industry) - Major legal risks (IP, data privacy, liability, regulated claims) - Technical complexity and ongoing infrastructure cost - Anything that makes this harder than it looks from the outside 7. CAPITAL REQUIRED - Realistic minimum cost to launch a first version - Typical months to first revenue in this space - Months to break-even based on comparable businesses 8. FOUNDER-FIT CHECK Based on my background: - What I have that helps me win - What I'm missing (skill, hire, partner, capital) - Whether this is a 12-month play or a 3+ year play - One specific question I should answer honestly before committing === OUTPUT FORMAT === 1. EXECUTIVE SUMMARY: one paragraph, the whole story. 2. VERDICT: GO (data supports it, real demand, founder fit checks out), WAIT (signal is thin or a missing piece needs resolving first) or NO-GO (the data is against it or the math doesn't work). Give 2-3 specific reasons. 3. THE 3 BIGGEST RISKS: what's most likely to kill this. 4. THE 3 BIGGEST OPPORTUNITIES: what could make it bigger than I expect. 5. THE 3 NEXT ACTIONS: specific things to do this week (interviews to run, posts to write, a prototype to build, a person to call). 6. THE FULL BREAKDOWN: all 8 sections above, with sources. === HARD RULES === - Be honest. If the idea is bad, say so. - If the data is thin, say so. Never make up market size numbers or competitor revenue. Label any estimate as an estimate and show how you got it. - Tell me what's true, not what I want to hear. - If you find something I clearly haven't considered (a regulation, a hidden competitor, a structural problem), put it at the top. - WAIT is a real verdict. Sometimes the right move is to wait for a clearer market signal. - Cite a source for every claim. If you can't cite it, don't claim it.

Then paste this into the same thread. It makes Perplexity poke holes in its own report and hands you a cheap test to run this week.

Pressure-Test The Report
Now pressure-test your own report. 1. List the 5 claims in your report that the verdict depends on most. For each one, say how strong the source is (official data, a credible publication, a blog or forum, or your own estimate). 2. Argue the opposite verdict as convincingly as you can in one paragraph. 3. Tell me the cheapest test I could run in the next 7 days, for under $100, that would prove or kill the riskiest assumption. Give me the exact steps and the result that would count as a pass. 4. Write 5 interview questions I can ask real people in my target market. They should be about their past behavior, not "would you buy this?"
What You Get Back

01

A GO / WAIT / NO-GO verdict

The first thing you read, backed by 2 or 3 specific reasons. This is the line that saves you from spending six months on something the market won’t buy.

02

Market data with sources

Market size, growth and recent shifts, with links so you can check every number yourself.

03

5 to 10 named competitors

Each with pricing, scale, strengths and gaps. Plus the substitutes people use today, which is usually who you’re really competing with.

04

Where your customer hangs out online

Subreddits, Facebook groups and Discord servers with links, plus real complaints about the current options. Go read them yourself for 30 minutes.

05

3 next actions for this week

The interviews to run, posts to write or prototype to build, based on the verdict.

How To Read The Verdict

01

Go

The data supports it. Still use the next actions to test one more layer before you spend real money.

02

Wait

Don’t kill it and don’t commit. Find the 1 or 2 things that would flip it to GO, test those, and rerun the prompt in 60 to 90 days.

03

No-Go

The hardest one to accept. Read the risks twice. If they’re structural, like a shrinking market or no real demand, trust the data, save the PDF and move on.

One Last Thing

AI research can be wrong, so click the sources behind the numbers your decision depends on. And no prompt replaces talking to your customer. Use this to narrow your bets, then go have 10 conversations with real people in your market.