Conduct market research
Market research will tell you if there’s an opportunity to turn your idea into a successful business. The most important step is to gather information about potential customers and businesses already operating in your area.
Use that information to find a competitive advantage for your business. A large point of difference for a lot of business owners is linked to their ‘purpose’.
Remember: You need customers that are willing to purchase your goods or service to have their problem solved.
Why do market research?
Many businesses fail, simply because there is no market for their product or service. Market research is a key component when you’re starting a business or launching a new product or service. It will provide you with the information needed to make better business decisions, by understanding your buyer's problems, pain points and desired solutions, you can ensure your product or service appeals to them.
Questions to think about when doing market research:
1. Who are your customers?
- Who will buy your product or service?
- What is the market size?
- How will you reach them?
- Why will they choose you?
- What will they pay?
2. Who are your competitors?
- Who are the key players?
- Where are they based?
- How do they approach the market?
- Is the market already saturated? How many similar options are in the market?
3. Do you know what resources are needed?
- What tools are required?
- Will you need staff or contractors to assist?
4. Future planning, what is your breakeven point?
- How much do you need your business to make to meet your personal budget?
- How much money will you need to cover your business costs till you are breaking even?
- What is your costing model?
5. What does your future growth look like and what do you want to achieve in your business?
- What are your SMART goals, short term and long term?
Customers are the most important thing. It is vital to find a market where someone is willing to pay money for your goods or service.