Running any business – from a fledgling startup to a large corporation – must start by identifying and answering the root questions. Otherwise, you will easily fall into the situation of “building a house from the roof”, going into small details before clarifying the big picture.

1. How far?

First, businesses need to know how far they can go:

- Market capacity: Is the market big enough to support the business?

- Interested customers: How many people are really interested in the product/service?

- Paying ability: How many customers are willing to pay? What is the average payment level?

This is the stage of determining the “playing field” – if the field is too small, all the efforts behind will not be enough to create a breakthrough.

2. How long?

Next, the problem of time and cash flow must be solved:

- What do customers need? What needs are urgent enough for them to decide to buy?

- How is the return on investment? Does the product/service help the business to quickly turn over capital?

- Payback period: How long does it take for cash flow from customers to cover the initial cost?

- How customers spend money: From the first purchase to the next, what scenario is needed to encourage them to return?

- Testing strategy: Can you create a trial package, a small sample (e.g. 1/10) to increase the return rate?

At this stage, the business needs to answer the question: is the model really sustainable and profitable quickly?

3. How much?

Once there is a market and a return on investment roadmap, the business will go into detail about resources:

- Human resources: How many people are needed to meet customer needs?

- Human resources costs: How much do you need to pay to attract and retain people?

- Operational process: How to build a smooth, easy-to-replicate system?

- Recruitment: How to find the right people, the right culture, the right capacity?

This is the time to calculate specific operating costs and actual implementation capacity.

Order of questions: Go from large to small

It is important to go in the right order:

1. How far? (profit)

2. How long? (payback period)

3. How much? (resources, costs)

Going in the opposite direction is like building a house from the roof: not knowing whether the market is large or small, rushing to recruit people, rent an office, and spend money is burning your own money.

Businesses can only operate effectively when they clearly define their vision, grasp their cash flow, and balance their resources. These three questions are the "compass" that helps businesses go in the right direction, avoid waste, and increase their chances of success.