Market Research

Doing market research before starting your business will allow you to know the demand of your product/service, who will likely buy or use them and whether these buyers will likely affect the location of your business.

Target market. Have you identified the type of people who will likely buy your product or use your service? What will you do to be able to understand their behavior and know them better? How many units of your product do you think can you sell or service jobs can you complete in a month, in a year?

Advertisement. How are you going to reach your customers? How are you going to reach most of them at the least cost?

Price. How much are you going to charge? High side or low side? Will you be able to make profit?

Competitors. Who are your competitors? What is important here is not the competition but your target market in relation to your competitors. It will help you understand your target market further by looking and analyzing as to why the target market buys or might buy from the competitor.

Positioning. Will you compete with existing business head-on or not? What’s your unique selling proposition?

Location. Where will you set-up your business? Knowing your market, who they are, where they are, how to reach them, your price, the competition, and type of operation suitable for your business is not the be-all and end-all of market research. Use the data to get a good estimate of the number of potential buyers or users and, consequently your potential sales figures.
Tips to keep in mind:
Find your niche. You must decide the economic level and geographic community that you are going to serve. Look for a niche that is being served only by a few. But if you encounter several competitors in every prospective market area, do not shy away from them. You can face them by creating your own unique niche with a new or fresh idea and service offerings.
Follow your heart. Think of the role you intend to play in your new business. Do you enjoy being hands-on and in the middle of everything? If you are a good cook, you would likely prefer being in the kitchen to serving customers in your carinderia. Are you more comfortable being a manager? You can get people to work for you while you concentrate on planning and running the day-to-day operation.
Prepare a financial statement. Your choices will require different amounts of start-up and working capital costs, sales prospects, and profit margins.
 
#Happy Investing Kabayan!

Comments

Popular posts from this blog

My First Investing/Trading Books

Will I Continue Paying My SSS or Not?

Centrelink: Benefits and How To Claim

Book Depository