Will your business idea work?
You’ve got an idea, but is it a business opportunity?
When you’ve decided on an idea which fits with you as a person, then you’ll need to spend time carefully investigating it further to see if it is in fact, a business opportunity, for many ideas never translate into business. You’ll have to find out if there is demand out there in the marketplace for what you’re planning on selling. No point making something or providing a service if no-one wants it! So market research is critical, in fact, it’s the basis upon which all other decisions are made about your business concept.
Key questions you need to get answers to are:
- What role do I want my business to play in my life, ie. Do I want it to be a part-time or full-time venture, how might it fit into my lifestyle and family and so on?
- Who, very specifically, will buy my products or services?
- Are there enough of these customers in this area to generate the level of business activity I need to give me the lifestyle I want?
- Who else is out there offering the same things – the competition?
- What will set my business apart from those already doing it?
- Why will the market change their behaviour and use my business?
- How will I reach the market?
- What prices do I need to charge for what I do?
These are critical factors which must be well investigated to allow you to make informed decisions and reduce your risk.
You’ll also need to research what resources might be needed to start and run the business, where you’ll get them and how much they will cost. You then need to examine how much money it will take to start the venture and keep it running for many new business owners are unrealistic and run out of money before they are profitable.
Whilst the business is being built and before it can return a ‘wage’ to you, you need to identify where your regular household income will come from.
Market research should include facts and figures about your target market, your competition, your industry and market, what trends are occurring here and overseas in your particular field. As a starting point, you can find much of this information at the Small Business Corporation in your state, from industry and professional associations and Chambers of Commerce, from local municipal offices, libraries and many other sources.
Additionally there are many books, articles and products to help you on your business journey.
Our next article looks at the key points to consider when starting a business.
Article by June Hope