Let’s say that you have a good idea to start a new business or a start-up and because you are very excited about if you want to start it as fast as you can. Stop right there! Before you jump into working on your project, thinking out strategies and other business related matters, you might be missing one very important step! You have to take the time to research whether the business model you are interested in is worthwhile spending your time on. Developing in-depth market research and market analysis on your business idea will give you the knowledge you need to be informed of the current trends and competition. Below is the list of several important topics that you should be researching in order to make your business profitable and successful:
1. Are you unique or do you have a niche? You have to identify if your idea is unique or has a niche to demonstrate the successful start of the idea. Ultimately, don’t worry if you are not the first on the block and there is someone else. In order to be successful, you don’t have to be the only person to provide such a service, although it is nice. As mentioned you don’t have to be first, but what you have to do is – provide the best service. Therefore, get to know the market place, the type of business and ensure your business has something unique to offer to the clientele as a point of differentiation.
2. Target market. Do you know who your potential customers are? Yes? No? Researching and identifying the target market is an essential part of starting any business. Your main goal is to get to know their needs, wants, wishes, likes as well as spending habits and the approximate amount that they can spend.
3. Calculating profitability. It is somewhat difficult to calculate what you don’t have, but you have to calculate roughly the amount of hours, labor force, purchases, hourly rates and everything else that is relevant to the price of your business operation. When calculated try to identify how much profit left after everything is paid off. Your main mission is to forecast future sales and to guess the operational costs of the business.
4. Competition. Are you different? You have to identify yourself as a point of differentiation on the market to attract clients to your business. You have to maximize whatever makes you more attractive. For example, you can sell at a lower price, delivery day or two faster; give a better product or service quality.
5. Business Plan. Do you have one? If you don’t have a solid business plan – you are losing out! A business plan is a must for any business start. A business plan is a journal with the guidelines for you to follow.
6. Permits and licenses. Before starting out you should also find out what permits or licenses you must obtain in order to open your business.