5 Metrics That Determine Whether Your Business Is Viable Or Not

[moonchild]

These are metrics that will help you to make judgement when you want to start a business, without further ado let's jump in

Control: You should be able to control your business and your business should not be dependent on any other platform or company, for example if you sell online on ecommerce stores like Amazon or Jumia, your business is not in control because if your account get banned that is the end of your business.

Entry: Your business should have a very precise entry, let your business go directly and hit the sweet spot, you need to be very precise with your entry.

Need: Your business should be fulfilling a need, this is the most important in the the metrics, your business should be supplying a demand for a problem.

Time: Your business should be absolute with your time, it shouldn't interfere with your business, that means it should be able to run on auto pilot, thereby giving you freedom, It's okay if your business takes your time at the beginning but as it grows make sure it can be run on the go.

Scale: Your business should be scalable, this equivalent with saying your business should be online and should be able to serve customers everywhere they are.

 

[Jasz]

It's no secret that the world of business is competitive. If you have a great idea for a new business, you need to make sure that it's viable before you invest your time and money into getting it off the ground.

There are a few key metrics that can help you determine whether your business is viable or not. They include:

Profitability: How profitable is your business? Over time, how much profit can you expect to generate from your enterprise?

Cash flow: How much cash flow can you expect? What are your current projected expenses? Are they realistic or do they need to be lowered? And what about your current projected revenue? Is it enough to sustain the business over time?

Growth potential: Do you have growth potential? If so, how much and over what period of time? Is there room to grow in your geographic location, or will you need to expand elsewhere?

Successful competitors: What other businesses are doing something similar and succeeding at it? Is there anything they're doing that you can emulate, while putting your own spin on it?

You need to be aware of these points to know if your business is really viable or not.

 

[Prayzident]

The metrics that determine whether a business is viable or not depend on various factors such as the industry, business model, and stage of the business. However, some common metrics that can be used to evaluate the viability of a business include:

1. Revenue: Revenue is the total amount of money earned by the business from sales of its products or services. A viable business should generate enough revenue to cover its expenses and make a profit.
2. Profit margin: Profit margin is the percentage of revenue that remains after deducting all expenses. A viable business should have a healthy profit margin to ensure sustainability.
3. Customer acquisition cost (CAC): CAC is the cost of acquiring a new customer. A viable business should have a CAC that is lower than the lifetime value of the customer.
4. Churn rate: Churn rate is the percentage of customers who stop using the business's products or services over a given period. A viable business should have a low churn rate to ensure customer retention.
5. Cash flow: Cash flow is the amount of cash that flows in and out of the business. A viable business should have positive cash flow to ensure it can meet its financial obligations.
6. Gross margin: Gross margin is the percentage of revenue that remains after deducting the cost of goods sold. A viable business should have a healthy gross margin to ensure it can cover its costs.
7. Return on investment (ROI): ROI is the return on the investment made in the business. A viable business should have a positive ROI to ensure that the investment is paying off.

These metrics can help business owners and investors determine whether a business is viable or not, but they should be used in conjunction with other factors such as market demand, competition, and industry trends.