subject: Doing The Reasearch - Checking The Fit of The Business [print this page] Doing The Reasearch - Checking The Fit of The Business
When you are trying to come up with an idea for a great business, you need to acknowledge that it isnt always a viable market to enter. Even though you are perfect for that precise niche, there may not even be a profitable venture to embark on. Always check to see if your business fits the market segment.
Even though you might be an expert in your field, it is unlikely that you know everything about that specific market and all the questions concerning the market place. Before you can develop a successful business strategy, a research of the market needs to be done, both the competitors and the customers that you will possibly have. So market research is in order.
The idea behind doing this market research is that you need to ensure that you have proper information at hand about your competition, customers so that your entry strategy can be suited to your specific situation. You need to find out if people are looking to buy what you are (going to be) selling at a price that you need to take to cover your expenses. This is important to do as so you dont waste your time trying to win in a market that isnt viable.
So in which areas should you do research? There are many, but the ones that are most important include:
Your Customers
Your Competitors
Your Product/Service
Your Location
The Price
The Advertising
Channels of distribution
Try to get as much information as you can about these factors, but remember to limit it as the problem with information overload is typical in our so-called information age. Usage of internet may save you a lot of time and sometimes money, but the information available is enourmous. Having a skillset of weeding out the good information is very valuable in this day and age.
Now you know what you need to do when you have found your preferred business, research the market. You may love a certain field that you know all about, but there isnt always a market to make a business in it, so find out before you possibly could have wasted all your money.
