3 tricks to find out if a startup will be profitable

[suchona.kani.z]

Plan twice, launch once
A quick initial analysis can take just a few hours. It only takes 2-3 hours (depending on the specific project) to calculate whether it makes sense to go into the project. You don't even need to know economic or accounting functions, you just need elementary school addition and subtraction .

"In my experience, only one-fifth of companies have a business strategy in place ," says our consultant Daniel Musil. "These companies have a big advantage in the market; they always know exactly how much they can afford to invest and how much they can cut prices. They don't have to do complicated analyses to plan post-Christmas sales and promote their products. They simply have a better overview of the whole process."

Will the project be profitable?
Let's say you want to set up an e-shop with a distribution job seekers database store, the costs of running an e-shop are relatively easy to calculate.

1. Determine your marketing costs
You can calculate your marketing costs very easily. The Google Adwords tool will help you determine the optimal bid amount for a selected keyword. This will give you an idea of ​​the prices in your industry and then you can determine your monthly budget (or budget per number of impressions). On Facebook, it works similarly - you determine the budget for the selected time period and target group .

Similarly, you can calculate the costs for each individual channel.

2. How to determine market potential?
Fortunately, the Internet is a great way to estimate the size of your target audience in advance. Don't make up numbers, use tools that are free. You can get hard data before starting a business from:

Adwords, Skliku – helps you estimate monthly keyword searches and click rates
Facebook – will help you determine the size of your target group on this social network
Google Analytics (if you already have a website)
Collabimu – helps you analyze competition and keyword search volume
Thanks to this information, you will know approximately how many people you can reach with your offer and which channels are most suitable.