3 Essential Questions to Answer Before Launching a Business


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Are you planning to launch a business? Before going ahead with the idea, here is a quick guide with 3 essential questions to be answered in order to evaluate your growth potential:

1-      What kind of business are you building?

– Lifestyle business:  it can be based on a hobby or something you have learned/trained for and usually doesn’t demand a massive investment. A large portion of creative businesses start like this.

– A corporation: something that may scale fast and need a proper structure: staff, office space, external funding from VCs or a significant bank loan. Tech and financial companies usually run in this category.

– A side gig: that extra income that you don’t plan to turn into the unique source of income. Something that you enjoy doing but at least in the near future don’t see as a full time job.  It can be associated with arts & crafts, culinary talents or being a private tutor, for example

2-      What’s the market size?

Is there a gap in the market worth exploring? To answer this question, do a market research so you’ll find out if the business is viable and scalable. Maybe you’ll realise that the side gig has the potential to be turned into a lifestyle business or that idea for an app demands more investment than you thought. When you size up the market, the potential for profit, and who are your target audience, you have a clear picture. So learn about it, do surveys, focus groups and get as much feedback and data as you can, to prove your point and build a relevant business.

3-      Can you make money out of it?

The final and more important question. Now it’s time to project revenues and profit. This includes the initial amount of money to be invested, fixed and variable costs and lots of spreadsheets that may drive you crazy at first sight but will actually help in the process of reaching goals. If it’s too much to handle, don’t hesitate in getting professional advice. Plan carefully and don’t take any step until you feel confident and prepared.

More resources:

The 5 Essential Steps to Launch a Brand

How to Balance the Emotional and Rational Sides in Brand Building

How to Create a Brand?

How to be a Freelancer in the Creative Industry

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