Truman:"The Yitang Five-Step Method is currently the most valuable methodology of Yitang, and it is also a concise, universally applicable scientific analysis framework that conforms to scientific principles, which I led the original creation of. In the five years since its release, hundreds of thousands of people have learned this framework,and tens of thousands of people can use this framework to conduct high-level deconstruction and equal dialogue. "
Yitang Five-Step Method = Demand → Solution → Business Model → Growth → Moat.Taken by 110,000 people, led by Truman through 7 versions of iteration, with 500,000 student training assignments.
I. Core Mindset
"Drive business with assumptions" — the foundation of almost the entire scientific course system of Yitang, and also the simplest method Truman uses to judge "the level of scientific literacy" in interviews.
Truman summarized:
- The Yitang Five-Step Method without "key assumptions" is just an empty shell
- Lean startup without "key assumptions" can hardly achieve low cost
- New business discussions without "key assumptions" can hardly be scientific and efficient
"In the fields of business and management,true masters are all masters of key assumptions."
Communication replacement (organizational habit upgrade)
| ❌ Old | ✅ New |
|---|---|
| "I think..." | "My assumption is..." |
| "My view is..." | "I assume..." |
| Discussion of "what to do" | Discussion of "what to assume" |
II. What are business milestones (Section 1)
Entrepreneurship from 0 to 1 to N, essentially which milestones are passed?
The first lesson iterated through 7 versions by Truman, taken by 110,000 people — the first lesson through which many people get to know Yitang.
4 core questions
| # | Question | Core answer |
|---|---|---|
| 1 | What exactly are we creating when starting a business? | Create a sustainably value-creating commercial entity |
| 2 | How to deconstruct the logic behind a project? | Yitang Five-Step Method(expanded below) |
| 3 | How to grasp the key to a business model? | Key assumptions + unit model |
| 4 | How to validate a business at low cost? | Lean startup + key assumption prioritization |
85% of business leaders have the wrong posture
Research findings(invested in 100 projects + 700+ cases + 110,000 students):
- Focus on resources and external opportunities
- but do not understand the underlying logic behind business success or failure
- There is a huge gap in depth when different CEOs look at the same project
Typical problems: no direction / lack of team / no resources / not profitable / no growth — in the end, all stem from a lack of understanding of the underlying logic of the business.
III. Key Assumptions — Ω Model (Section 2)
Three findings from Truman:
- People treat the Five-Step Method as a BP tool, with no assumptions and no way to falsify
- Half of the groups in the bootcamp are used to viewing business as "a big lump", which is very inefficient
- Internal discussions habitually use "I think" instead of "my assumption is"
Ω Model (3 steps of complete assumption work)
提假设(Hypothesize)
↓
验证假设(Verify)
↓
迭代/淘汰(Iterate)
Key suggestions across 3 dimensions:
| Dimension | Focus |
|---|---|
| Mindset | Replace "subjective opinions" with "assumptions" / tag each assumption: valid / invalid / to be validated |
| Communication | The team gets used to "My assumption is X / Validation method Y / Current status Z" |
| Tools | Key assumption list + priority ranking + validation ROI |
Assumption mindset (5 soul-searching questions)
- Behind your "I think", what is the actual objective assumption?
- How do you plan to validate this assumption?
- If the assumption does not hold, what will happen to your business?
- How much does it cost to validate this assumption?
- Are you 60% confident or 80% confident in this assumption?
IV. Yitang Five-Step Method (Section 3 + Implementation Section)
Definition of the Five-Step Method
| # | Step | Core question |
|---|---|---|
| 1 | Demand | What is the user's real problem? How painful is it? How frequent is it? |
| 2 | Solution | What is your product solution? How strong is the core value? |
| 3 | Business model | How do you make money on a single order? Does the unit economics hold? |
| 4 | Growth | Where do users come from? What is the customer acquisition cost? What is the LTV? |
| 5 | Moat | Can you hold your position in the long run? What will competitors do after you seize the market? |
Five-Step Method vs BP
| BP | Five-Step Method |
|---|---|
| Tell stories to persuade others | Deconstruct assumptions for self-validation |
| Static document | Dynamic canvas (iterated through 100 versions) |
| Subjective narrative | Objective assumptions + validation criteria |
The mountain climbing map of the Five-Step Method (L1→L5)
| Level | Capability |
|---|---|
| L1 | Know what the Five-Step Method is |
| L2 | Able to use the Five-Step Method to interpret others' projects |
| L3 | Able to use the Five-Step Method to deconstruct one's own project for 1-3 versions |
| L4 | Able to iterate 10-30 versions with the Five-Step Method + drive with key assumptions |
| L5 | Able to iterate 50-100 versions with the Five-Step Method + teach others |
Evolution path of the 100-version Five-Step Method
| Version | Theme | Key changes |
|---|---|---|
| V1-V10 | Launch exploration | Bold assumptions + rapid research and validation |
| V10-V30 | Core refinement | Find the precise product core + establish the unit model |
| V30-V50 | Business model | Unit model baseline values + dynamic forecasting |
| V50-V100 | Growth + moat | Growth engine + long-term moat construction |
V. Step 1: Demand origin (Advanced Level 1)
"When managing a startup, business model is not our first job; demand analysis is."
The most tragic outcome
You work extremely, extremely hard, but your efforts are meaningless — you solved a problem that is not important enough, or even built a product no one wants.
Statistics: among failure cases,30-50% of mistakes are concentrated in the first step:No deconstruction / no segmentation / no judgment / no quantification.
4-step method: Deconstruct, Deduce, Evaluate, Calculate
| Step | Meaning |
|---|---|
| 1. Deconstruct | Break broad demand down into specific scenarios + user groups + pain points |
| 2. Deduce | Deduce the frequency / scale / urgency of the demand |
| 3. Evaluate | Evaluate whether the demand is rigid enough / large enough / frequent enough |
| 4. Calculate | Calculate demand scale + unit economic model + ceiling |
6 insufficiencies in demand aesthetics
| Misconception | Manifestation |
|---|---|
| Treating it as static | Fill it out and never revise it |
| Overly arrogant mindset | Think you are awesome, don't know you are unskilled |
| Too little exposure | Haven't seen good ones, don't know why they are good |
| Not explicit enough | "Love of beauty" "strong vanity" are hard to judge |
| Not quantitative enough | Like qualitative big words, don't know how to analyze with numbers |
| Not stratified enough | Do not distinguish: big demand vs small demand, high frequency vs low frequency, rigid vs non-rigid |
4 business missteps (all stemming from insufficient demand analysis)
- Start thinking it can be very big, end up finding it can only be a small business — failed to see the demand ceiling
- Extremely low efficiency in model design / pricing / channels — did not match demand scenarios
- Poor conversion rate for part-time amateur projects — demand is too broad
- The all-in direction is not painful for users at all — demand is not rigid
VI. Step 2: Solution / Product core (Advanced Level 2)
Truman:"To truly achieve high-level operation, this lesson, the second step, is the most scarce."
Why isn't it a "Yitang Four-Step Method"
If you skip the solution and go directly from demand → business model, you will lose:
| Problem | Consequence |
|---|---|
| No product differentiation | Homogenized competition, trapped in price wars |
| No product core | Unable to form a real moat |
| Miss innovation opportunities | Think with existing product forms, lose disruptiveness |
| Product value cannot evolve | Why will users keep choosing you? |
4-level training for product core
| Level | Course |
|---|---|
| Product Core 2 | Strip out the minimum core — what is the most core, most irreplaceable part of your product? |
| Product Core 3 | Find the precise core — around user pain points, find the precise breakthrough point |
| Product Core 4 | Dynamically iterate the core — the core is not fixed, it must evolve with users and scenarios |
Product suggestions for 5 teams (on-site by Truman)
"I told at least 5 teams:You need a product partner or operator." "I found problems in at least 7 teams, and my suggestion is:You need to think more about your product core; I judge it is very hard to make it hold. "
VII. Step 3: Business model / Unit model (Advanced Level 3)
"Do not scale prematurely an unvalidated business model."
3 common misconceptions in business model analysis
| Misconception | Manifestation |
|---|---|
| Too grand | Talk about industry trends, platforms, free models, PEST, lack specific analysis |
| Too metaphysical | "The essence of business is altruism" "The essence of business is dividends" "The essence of business is efficiency" |
| Hard to train | No simple tools, cannot be used for evaluation / accounting / decision-making |
4-level training for unit model
| Level | Course |
|---|---|
| Unit Model 2 | Select the core model — what is the smallest measurable unit of your business? |
| Unit Model 3 | Build the complete model — complete unit revenue / cost / profit structure |
| Unit Model 4 | Identify baseline values — reasonable ranges for each indicator |
| Unit Model 5 | Dynamic forecasting model — use the model to forecast growth / scale / concentration |
The power of the unit model
A simple data model can judge:
- Whether the business model holds
- Whether a single order makes money
- How much can be earned after scaling
- How high the concentration is
- Whether investors will invest
40+ implementation cases (newly added in the 2024 second delivery of this course)
Specific cases to be organized into sub-wikis, pointers provided first.
VIII. Step 4: Business growth (Advanced Level 4)
Truman: "I observe that the vast majority of companies, in the growth stage,have too many random tricks, gimmicks, tools and techniques, but think too little about systematic methods and core capabilities. "
Growth is not
- Not luck
- Not pursuing a single trick
- Not gimmicky free customer acquisition
Growth is
- Systems engineering
- Scientific method = high efficiency + sustainability + scalability
- Through key assumptions + unit model, scientifically validate the growth engine
Yitang's 10x growth (2021-2024)
"Since delivering the first version in 2021,Yitang has achieved roughly nearly 10x growth (revenue and membership scale). "
Scientific analysis model for growth (2024 upgrade)
(Specific model to be completed when ingesting the full version of the course content)
3 core elements:
- Growth engine — compound growth mechanism
- Growth funnel — Reach → Conversion → Retention → Referral
- Growth rhythm — rely on people in the early stage, rely on products in the mid stage, rely on platforms in the late stage
IX. Step 5: Project moat (Advanced Level 5)
Buffett's 1993 letter to shareholders:Moat = the unique competitive advantage of an enterprise, which allows the enterprise to survive in long-term competition and maintain its original profit margin and market share.
4 major filters for investors (Charlie Munger)
- Whether it has a moat
- Whether it can be understood by investors
- Corporate integrity and talent management
- Whether it can be bought at an attractive price
"The moat is the most critical point among them; entrepreneurs and company management are the creators of the moat.What investors need to do is discover the moat of a startup before it becomes obvious."
Classic moat analysis framework (consensus in the venture capital circle)
| Moat type | Example |
|---|---|
| Brand moat | Coca-Cola / Moutai / LV |
| Technology moat | ASML lithography machines / Qualcomm chips |
| Network effects | WeChat / Didi / Meituan |
| Economies of scale | Walmart / 7-Eleven / Costco |
| Resources / licenses | Internet hospitals / tobacco / banks |
| Data moat | ByteDance / Google / Netflix |
| Switching costs | SaaS customer data migration / operating systems |
| Ecosystem moat | Apple ecosystem / WeChat Mini Programs |
The relationship between unit model ↔ concentration ↔ moat
单元模型(规模经济 vs 规模不经济)
↓
集中度(高 / 低 / 高低高 / 低低低)
↓
壁垒(自然涌现的护城河)
Key insight:The strength of economies of scale in the unit model almost determines the final concentration of the industry, and the final concentration determines the height of the moat.
X. Implementation Section: From V1 to V100 (Section 9)
Truman:"Veterans / high-level students use the Five-Step Method a lot, attach great importance to it and apply it repeatedly, and think it is extremely valuable; on the contrary, first-time doers / newcomers often don't take it seriously."
4 implementation stages
| Stage | Goal | Five-Step Method focus |
|---|---|---|
| 1. Startup stage | Find the most critical assumption | V1-V5: don't seek completeness, seek accuracy |
| 2. Validation stage | Run through the core links | V5-V20: run in small steps, tick off key assumptions |
| 3. Launch stage | Business model + unit model established | V20-V50: unit model baseline values + find precise core |
| 4. Scaling | Growth engine + moat | V50-V100: growth funnel + long-term moat |
Must-know content (for each stage)
1. Required reading for startup stage:
- "Required for All: Reunderstand 'Key Assumptions'"
- "Five-Step Method Advanced Levels 1-5"
2. 100-point experience front-loaded:
- "Product Core 2 / 3 / 4"
- "Unit Model 2 / 3 / 4 / 5"
XI. Candy Arsenal
Candy 1: Duozhuayu launch process review
The launch process of Duozhuayu, a second-hand book circulation platform. A typical early iteration case of "demand → solution → business model".Process of ticking off key assumptions See original document for details.
Candy 2: Chen Xianmin Product Selection Case
A specific product selection decision case from student Chen Xianmin — how to screen SKUs using key assumptions + unit model.
Candy 3: High-Quality Business Model Canvas
The "high-quality" standard for the 9 modules of the Business Model Canvas — it is not enough to just fill them in; every cell must include data + assumptions + validation status.
(Original 9 modules of the Osterwalder Business Model Canvas: Customer Segments / Value Propositions / Channels / Customer Relationships / Revenue Streams / Key Resources / Key Activities / Key Partnerships / Cost Structure)
Candy 4: LeFit Research
Business model research on LeFit, a leading brand in the fitness industry — a practical case breakdown.
Candy 5: Five-Step Method Canvas for Course Experts (xlsx)
The Excel template for the Five-Step Method Canvas used by course experts — can be copied and used directly.
XII. Truman's 7 Soul-Searching Questions (Five-Step Method Practice)
- Is your demand a real demand?Frequency / scale / urgency Do you have data?
- What is the core of your product? If you strip away all non-core elements, what is left?
- Is your unit model valid? What are the revenue / variable cost / fixed cost of a single order?
- What is your growth engine? What is your LTV / CAC ratio?
- What is your long-term moat? If a large company copies you, can you hold them off?
- What are your 3 most critical assumptions? What is the minimum cost to validate them?
- If you invest 10 times the marketing input, can your business grow 10 times? (Tests unit model + growth engine)
XIII. Relationship with Existing Skills / Wiki
本 wiki(五步法完整体系)
↑
[[yiland-business-prediction-deep]](深度预判)
↑
[[yitang-机会预判]](认知框架篇)
↑
[[yitang-wanghuiwen-product-class]](王慧文 PMF + STP + 创新扩散)
↑
[[yitang-roi-complete-system]](ROI 决策)
↑
[[yitang-life-redpoint-100-cases]](为什么做这件事)
Truman's core methodology closed loop:
红点(为什么做)→ 预判(做不做)→ 五步法(怎么做)→ 复盘(做得怎么样)→ 灵感闪现(创造性解法)
See also
- Yitang Opportunity Prediction Methodology — Opportunity Prediction Cognitive Framework Edition
- Yitang / Advanced Business Prediction (Industry Canvas + Concentration + Cases) — Industry Canvas + Concentration
- Yitang / Complete 66-Page Notes from Wang Huiwen's Tsinghua Product Course — Wang Huiwen's Tsinghua Course
- Yitang / Complete Scientific Decision-Making ROI System (4 Main Lessons + 5 Candy Case Collections) — ROI Decision System
- Yitang / First Lesson on In-Depth Review — In-Depth Review
- Yitang / Complete Inspiration Flash System (Cognition + Cases + Tools + Notes) — Inspiration Flash
- Yitang / Required Course on Time Management — Time Management
- Yitang / Life Red Dot Cognition Edition + 100 Case Collection — Life Red Dot
- Personal memory user_role — Product Manager + Entrepreneur
- Wang Kai AI Era Decision System — Wang Kai Decision System
Relationship with Existing Skills
This wiki integrates ~/.claude/skills/yitang-* the core methodologies of multiple Skills, including:
yitang-predict-business-opportunity— Opportunity Predictionyitang-evaluate-roi-loop— Dynamic ROI Trainingyitang-master-business-model— Business Model (Unit Economics)
Skills provide operational frameworks; this wiki is a complete set of methodologies + cases + Candy arsenal.