Are you thinking about starting a business? Perhaps you have already started one. Either way, it’s important to think about whether or not you have a profitable idea.

You may remember the Saturday Night Live sketch in which two men opened a store in a mall that sold cellophane tape. That’s all they sold — cellophane tape. That’s all you could see on every wall.

On opening day, the partners were elated. They knew they were going to clean up. But of course they didn’t.

Their failure in business was predictable. First of all, they had to pay a very high rent to be in the mall, even though their product sold for just a couple of dollars. The two men would have had to sell thousands of rolls of tape just to break even.

Another reason that their idea could not possibly work is that tape lasts a long time. If you sell houses or cars, that’s not a problem. But most retail stores need repeat customers who buy frequently.

Third, this tape store was doomed because tape is available practically everywhere — in drug stores, grocery stores and big box stores, to name a few. People had no reason to make a trip to the tape store when they ran out. They could even go to the local convenience store or pick it up when they go out to buy other items.

Keep this lesson in mine when you decide to start a small business. You don’t want to waste your time, money, sweat and emotions on a bad idea.

Here are a few question to ask yourself before taking the plunge or getting in too deep once you’ve started:

Who are your potential customers? You need to be clear about this.

Is somebody else already filling this need?

Can you sell your product or service with enough profit margin to make it worthwhile?

What is your competitive advantage or unique selling proposition?

Do you have enough money set aside to meet business expenses for several months and to live on ?

Once you have taken time to consider and ask these questions, you will have a better understanding of how viable your small business or home business might be.

Danek S. Kaus is a business journalist and publicist, and the the author of You Can Be Famous! Insider Secrets to Getting Free Publicity. Read his Blog and learn more about his Services