10 Essential Questions to Determine the Viability of Your Business Idea

Before you start searching for funding, it’s a smart move to ensure that your company has the potential to succeed. Often, what we want for our business isn’t as crucial as whether our business can actually take us there.

In simpler terms, if you pick the wrong business idea, you won’t get very far. Fortunately, one of the most valuable purposes of a business plan is helping you figure out if your dream venture is likely to become a reality.

Many businesses never get past the planning stage because founders, during a logical and well-thought-out planning process, test their assumptions and find them lacking. It’s essential to evaluate your idea using at least two criteria: financial viability to make sure it makes economic sense and your personal lifestyle preferences because who wants a successful business they hate?

To gauge your company’s potential, consider these questions. There are no right or wrong answers; they’re meant to help you determine how well your proposed venture aligns with your goals:

1. How much initial investment will your business need?
2. How much control are you willing to give to investors?
3. When do you expect the business to become profitable?
4. When can investors, including yourself, anticipate a return on their investment?
5. What are the projected profits of the business over time?
6. Can you financially commit to working full-time on the business?
7. What salary or profits can you expect to take from the business?
8. What are the chances of the business failing?
9. What’s your plan if it does fail? Do you have a backup or alternative plan?
10. What is your unique value proposition, and how does it differentiate your business from competitors in the market?