3 Market Research
Market research is the process of collecting valuable information to help you find out if there is a market for your proposed product or service. The information gathered from market research helps budding entrepreneurs make wise and profitable business decisions.
The key to any successful business is to understand what it is that your customers want and giving this to them in a way that is profitable for you.
Many entrepreneurs make the mistake early on of thinking that they know what their customers want without ever asking them. This can result in some very expensive mistakes later on.
In order to find out what exactly it is that your customers want you must undertake a process called ‘Market Research’.
Where do you start?
1. Look at other similar products that are out there: Can you learn from them? What do they do well? How could they be improved and how is your product going to be better than everything else that is available?
2. Secondly, look at your target customers: What are their needs? A questionnaire can be very helpful here but you might also consider talking to someone who is an expert in this area.
For example, if you are producing a piece of craft, how about talking to a successful craftsperson in the area? You might learn many valuable lessons.
SWOTAnalysis
When you have completed your research you can then do your SWOT analysis.
What is a SWOT Analysis?
A SWOT analysis is used to let you know what potential problems you might have to deal with in your business and the things which will be of benefit to you if dealt with correctly. Carrying out a SWOT analysis involves looking at strengths, weaknesses, opportunities and threats.