Warning: This may sound kind of Geeky for those non business lovers out there!

In my spare time, I like to develop possible business models and brands as a hobby, and while some people might think this sounds like work, I really enjoy challenging myself and experimenting with what my mind can come up with. When I am working on and creating business models and fictitious brands, I try consider a few things to make sure my idea is even worth my time.

1) Does this business/brand have the possibility of having passive income from the beginning? If it doesn’t, how long will it take to create passive income (either through subscriptions, investments, services, etc.)? [Note: Passive income from the beginning is not a requirement, but there has to be an investment account or a way to create it later on. Why do I think it is so important? Because wealth is not measured in the amount of $$$$ a person has in one day, it is measured in time; if I stopped working today, how many days can I live forward (with my same lifestyle expenses) with my current income, liquid assets, savings, etc. - Example: I have $2,500 in monthly expenses, if I have subscriptions or memberships coming in from a service I provide of $4000 a month, than I am infinitely wealthy (as long as my passive income doesn't decrease or my expenses go up). Every month I would be netting a $1500 profit and I wouldn't every have to work again.]

2) What is the length of time it will take for me to get this business started? I ask myself this because I don’t want to spend 6 months on something if I could have done something else (with the same benefits) that would have only taken 2 weeks. (That is pretty much common sense, but I have to ask myself anyway so I don’t start on a rampage working on one project without thinking.)

3) How much upfront cash is required by myself or an investor to get this off the ground? I love the businesses that require my sweat equity (many bootstrappers have no other choice but to spend there own time and money in the beginning, Including me) and not much more. The only disadvantage of Sweat Equity is that time is precious and if you can’t make money right away than you need to divide your time up with something like my cash/growth items ratio (like what I talked about in a previous post “The Perfect Ratio, What is it?”).

4) Does this fit a niche or does this business fall into a huge market category? There is not a right or wrong answer here, I just prefer the niche Markets. For me the smaller markets are easier to access with advertising (more specific), and they take less time to get input from the consumers, as well as there are less products/services you need to create or develop (allowing us to become more of an expert in less amount of time).

5) Will this business/brand benefit who I want to sell to (my target market)? If it won’t, why spend the time (or you can change your target market)? Unfortunately, if I have an idea, decide on my target market, and then realize, “oh, I don’t think this will benefit them that much”, it is probably better to just drop the idea or put it on the back burner for future reference. Why try to force someone to spend money on something that they won’t utilize or love, It is a losing battle. Like Seth Godin Says in The Dip, Sometimes it is okay to quite. [My Soap Box: I don't want to become another company that sells Shit on an infomercial that no one needs. I might even make a little money right away from those out there that are addicted to buying, but are they going to tell their friends about my product if no one needs it? Probably Not. Are they going to shout to the world how great our product is if no one actually NEEDS it? NO! Okay, I'm done]

If anyone has a better start up question list, please let us know about it. Maybe we are missing something very crucial. Thanks for your time and have an awesome day. [By the way check out this great day to day blog I found by Angelo Bell]

~Chais