Inadequate investigation and planning before the business is launched.
A lot of entrepreneurs open their doors without knowing where they’re going। They might have the necessary talent, desire, and motivation - but they haven’t properly investigated and researched the businesses they’re intending to start.
You must find out whether there’s a market for your product or service, and what’s involved in turning your idea into income। When everything else is said, the point is to be sure that you can make money from what you have in mind.
- You don’t find that out by guessing, or by assuming that what you have is what the world wants। Which is how the majority of startup owners do things…
And which is a major reason they go broke.
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Having a good idea is just the start of a successful business। You also need an identifiable group of people who want what you offer and are prepared to pay the price you need to make a profit.
Before you even think about anything else, do the research.
Don’t guess…
Test, and check things out.
-Get a very firm handle on what the business you’re setting up is all about, what you’ll be selling or offering – and to whom
-Know the unique features of your product or service, that a market for it exists - and what you have to do to reach it। Identify the channels of distribution, and size up the competition and the demand for what you have in mind.
Then decide whether the idea can work.
Even if you don’t need to borrow or raise money (so you don’t have to worry about satisfying “outsiders”), you still owe it to yourself to check that what you’re doing isn’t likely to be a costly waste of time.
And if you do intend going to outsiders for finance to get started, NOBODY is going to give you money until they’re satisfied that you know what you’re doing, and that what you’re doing has a fighting chance of succeeding.
Note that there are two parts –
(i) Investigation (doing the research); and then
(ii) Planning (setting your course)। Planning is covered in Chapter 3
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2.1 The Research
Don’t rush; take as much time as it takes to do a thorough investigation। You must find out everything you can about -
1) Your market – the DEMAND
2) Your competitors – the SUPPLY
3) Your business
1) The DEMAND: What market is there for your product or service?
You have to determine: Who are your customers, what do they want, how big is the market, how do you catch their attention, how much will they pay for your product? You find out about these things by doing market research.
- Your “market” is the people who might buy from you. That’s not all people – it’s only that specific group who have needs or wants that can be met by the products or services you supply.
That is your target market.And those people whose needs or wants can be met by your products or services are your prime prospects.
They are, quite simply, the customers that you want to capture.
-But you don’t just need some customers। There has to be a level of demand that allows your business to operate at a profit…
There are probably at least “some” people who will buy what you offer। The real question is: can you sell enough for it all to make sense?
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Learn everything you can about -
a) The people who buy the things you will be selling, and
b) Why they buy/use them.
।Successful business owners know their target customers’ wants and needs, their likes and dislikes, as well as they know what their family members do and don’t like. Maybe better.
Because when you know and understand your customers and their requirements, you can -
- Give them what they want, in the way they want it and will respond to। (That is, you can make them an offer they can’t refuse)
-Go where they are. (That means you can put your offer where they are most likely to see it - because you’ll know where they “gather,” what they read or look at।) Which is the powerful formula for seriously effective marketing.
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