The Successful New Business Viability Test
There is an epidemic of business failures in this country and millions of entrepreneurs fail to generate even one penny in positive cash flow. We don’t start businesses to spend money, we start them to make money so why is it that so few ever become profitable?
One method to avoid this tragedy (and it is a tragedy) is to get focused on the objective which is always positive cash flow. I’ve come up with a very simple, yet very powerful exercise I call The Business Viability Test.
Once you can easily answer these questions, and verify their accuracy with results your chances of success go up exponentially.
Business Viability Test – this is a simple yet very powerful exercise that will help you define exactly what your business is all about.
- What need do you fill or what problem do you solve?
- Why this business?
- Whom do you fill the need/solve the problem for?
- How do you do it?
- What are the benefits of the solution?
Most entrepreneurs start off with the intention of making money but the truth is that profits are a result of previous actions. A focus on generating revenue may achieve some short-term success unless there is a problem identified with your solution there’s little chance your buyer will get that warm fuzzy feeling of appreciation for your product or service.