It’s time to evaluate your business idea after you’ve decided on one that fits your goals and lifestyle.
Who is going to buy your product or service?
Who will be your competitors? This process will assist you
in addressing the sections of your Plan dealing with the opportunity, value proposition, market size, and competition.
You can accomplish this in a variety of ways, including:
: When conducting general Google searches
: There is a huge amount of information online
: Speaking with people who are already employed in your target industry
: Reading books are written by people in your industry
: Investigating key individuals
: Reading relevant news websites and trade magazines
Consider your intended audience.
It is not sufficient to simply state the current market. You must understand what portion you will be
able to claim and whether it is even possible. We recommend conducting a market analysis to
determine how appealing your prospective market truly is.
It will guide your research as you consider:
How urgently do people require what you’re selling or providing right now?
What is the size of the market? Is there a large number of people already paying for products or
services similar to yours? Have you determined who your target market is? Being specific will assist
you in concentrating your marketing message and investment
How simple is it to acquire a customer (and how much will it cost you)? Selling enterprise software may necessitate a much larger investment than a coffee shop.
How much money and effort will it take to provide the value you want to provide?
How much time will it take to reach the market? What, a month? What, a year? How long is three years?
How much money will you need to invest upfront before you can start?
Will your company remain relevant in the long run? A company that repairs Samsung screens will only be relevant for as long as the Samsung is available in the country. If your company is only relevant for a limited time, you should also think about your marketing strategy.
Investigate the competition.
You can even go a step further and consider the consumer needs that are currently unmet by businesses in the industry. This is an excellent time to investigate potential competitors. And keep in mind that the presence of competitors is often a good sign! It means that there is already a market for your product or service, so you know you have potential.
Validate your concept.
Finally, it is critical to put your idea, services, or products to the test. Take the time to speak with your potential customers while conducting research. To gauge interest, present them with the concept you intend to launch, as well as confirm which competitors they may already use and the price they are willing to pay. If you are able, it may be worthwhile to create a minimum viable product.