The Bullseye Framework is named after a dartboard because it is designed around concentric circles representing different business parts.
The bullseye refers to product/market fit, which means that your product is being used by customers who see value in its offering and are willing to pay for it.
This is the most critical part of any business because if you cannot get people to buy, there won't be enough money left over to reinvest or improve it.
The next ring refers to whether these users can be acquired at the cost of growing.
If your main users are coming from other successful products, this is cheaper because you do not have to market the product as heavily, and they come with a built-in user base.
However, the business model will not hold up over time if these customers must be acquired by spending marketing dollars or hiring salespeople.
The next ring is where you begin to see some return on your investment, meaning that the money being spent to acquire these customers is lower than the revenue they are generating for a company.
Once again, this is a reason for a business not to shut down because it can still be sustainable if reinvested into the company.
However, if costs outweigh revenue, the business model will fail.
The next three rings represent different outcomes for companies in this situation.
Suppose they can acquire customers at costs lower than their revenue, but not in great enough numbers to become profitable. In that case, it is called a sustainable business model in 'The Bullseye Framework.'
If they can acquire the customers and profit from them, it is called a breakthrough business model.
The final ring represents the worst-case scenario where the cost of acquiring these customers begins to outweigh their revenue generation, and it fails as a sustainable business model.
