Find out if your business idea is profitable and viable: a guide for light entrepreneurs

Light entrepreneurship gives you flexibility and the chance to try out different business ideas without taking too much risk. However, before you start offering your services, it is important to make sure that the business idea is both profitable and viable. Here's how you can find out the potential of your service and ensure its success.

1. Defining the business idea

The first step is to define your business idea precisely. Consider the answers to the following questions:

• What service do you offer?
• Who is the service aimed at?
• What differentiates your service from the competition?
• What are the key benefits of your service for customers?

For example, if you plan to offer home cleaning services, specify whether you are targeting families with children, busy working people or, for example, the elderly.

2. Market research

Next, it's time to do some market research. This will help you understand the needs of the market and the competitive situation.

• Analysis of competitors: Find out who your main competitors are and what they offer. Look at their pricing, marketing and customer service.
• Customer segmentation: Specify your target customer. Who are your most likely customers and what are their needs?
• Market size and growth: Assess the size of the potential market and whether there is growth in the sector.

3. Customer surveys and feedback collection

Getting customer feedback is important. Use these methods:

• Surveys and interviews: Create a questionnaire and ask for feedback from potential customers. Interviews will give you a deeper insight into your customers' needs and expectations.
• Testing the prototype: Offer your service on a trial basis and collect feedback on its performance and quality.

4. Financial calculations

To assess profitability, financial calculations must be made. Consider the following factors:

• Income and expenditure: Estimate the pricing and projected revenue of your service. Also calculate all costs, such as marketing, materials and any licence fees.
• Critical point: Calculate how many customers you need to break even (break-even point) to help you understand how realistic it is to achieve profitability.

5. Business plan

Put together a business plan that includes:

• Business idea and service description
• Market analysis
• Marketing and sales strategy
• Economic forecasts
• Objectives and indicators

The Business Plan acts as a map to guide you towards your goals and help you assess your progress.

6. Testing and optimisation

Start offering the service on a small scale and continuously collect feedback. Analyse the information received and make the necessary changes:

• Analysing feedback: Use customer feedback to improve service quality and customer experience.
• Optimising operations: Review processes and look for ways to improve efficiency and reduce costs.

7. Scaling and growth

Once you have proven your service works on a small scale, you can start planning for growth:

• More effective marketing: Use digital marketing channels such as social media and search engine optimisation to reach a wider customer base.
• Expanding the range of services: Explore opportunities to expand the range of services to better meet customer needs.
• Networking: Build networks with other entrepreneurs and industry players. Networking can bring new customers and opportunities for collaboration.

Summary

As a light entrepreneur, finding out whether a business idea is profitable and viable requires careful planning and analysis. Define your business idea precisely, conduct in-depth market research, gather customer feedback, calculate financial projections and prepare a business plan. Test your service on a small scale and continuously optimise your operations. By following these steps, you can ensure that your business idea is both profitable and viable, and you can confidently set out to realise your dream of becoming a light entrepreneur.

The Kevyesti.fi invoicing service can help you focus on your core competencies by taking care of invoicing and taxation for you. This leaves you more time to develop your services and manage customer relationships. Light entrepreneurship can offer you the flexibility and additional income you've been looking for!