The cost-benefit analysis should be one of the first things you do. It is a systematic process for calculating and comparing the benefits and the costs of a business. It helps you determine if your business idea is a sound (feasible) investment, and it provides a basis for comparing projects.

A cost-benefit analysis involves comparing the total expected cost of each option against the total expected benefits, to see whether the benefits outweigh the costs, and by how much. This is a must in any business as it prevents you from spending (and losing) not only money, but time and effort.