Many entrepreneurs start with a great idea, but then start a business that struggles in the marketplace because their product or service doesn't appeal to consumers. Of course, an in-depth evaluation of the business idea will give the entrepreneur more hope for success, but it will also allow the entrepreneur to identify some of the shortcomings of the business idea.
Entrepreneurs are now invited to ask themselves the following questions.
1,What problem will my product or service solve?
2, Who will buy my product or service?
3, Why would they buy it?
4,What are the channels of purchase - specialty shops, department stores, online, smart phones?
5,How should I charge to make a reasonable profit, and will consumers agree to the price and actually buy?
6,What kind of product or service will be my competitor?
No company (especially a small business) has a product or service that will satisfy all consumers. Adequate clarity in positioning your business and your target market will help your business to grow. It is therefore vital to carve out your own niche in the market, and this is the key to success, even for large companies.
Walmart and Tiffany are in the same retail industry, but their target markets are very different: Walmart offers low cost goods for the masses, while Tiffany offers luxury jewellery for the high end.
To assess the success of a business idea in the marketplace and to develop an effective marketing plan, it is not enough to answer the questions listed above; entrepreneurs need to complete some formal market research.
In addition, entrepreneurs can consult with their local SME development promotion centre or seek advice from professors specialising in marketing at local universities, who will provide professional guidance and help entrepreneurs identify which information they need to collect Cye.
In general, you need to collect important information in three areas.
"Industry information
"Target market
"Competitors
Entrepreneurs can learn about industry trends, statistics, industry profiles and other information from statistical departments and industry associations. Once you are able to clarify the feasibility of your business idea, you can proceed to the next step with confidence.
