Why Your Business Idea Requires A Market Plan
The Market Study
You have made the decision and are getting set to make the bold move; starting up your own business. You know what the product or service is that you will be offering; but do you know who your competition is? Do you know whether people are interested in buying what you have to offer; what they are willing to pay and where they buy a product that is the same or similar to the one you will be selling?
These are the questions among others that a market study conducted as part of your business plan will answer. The answers will give you solid information which you can use to crave out your own territory.
Some years back a group of us decided that it was time for us to take a serious look at setting up a culinary herb business. We had considerable knowledge about growing and using herbs but not about selling them. So we created a market study to answer the following questions:
1- What exactly is the market?
2- Is the market growing, shrinking, or staying the same?
3- Is the market identified big enough to make it worth the time?
4- What would our monthly sales be?
5- What are the target markets for the product?
6- What competition exists in the market?
7- Is it possible to establish a market niche?
The results of our market study lead us to conclude that there was significant competition for culinary herbs but that there was a niche for herbal teas. Had we not done the study we may have blundered into an overcrowded market and been seen as being no different from our competitors.
The market plan or study reduces risks, no plan can guarantee success but you can increase your odds of becoming a successful business owner by developing a strategy that enables you to not only compete in a tough market place but to establish your own space or niche.
Do not, and I must repeat this, do not rush into a new business venture, you are likely to regret your haste as you watch your dreams crumble and your earnings dissolve. Take the time to make a plan, especially get to know the market before you set out to compete in it. Consider the time as an investment in your future and spend it wisely.
This way you are prepared as well as you can be for what can be a bumpy but rewarding journey.
- The Business Plan
The failure rate of many small businesses is high. There are a number of reasons for this and this hub will focus on one of them, the business plan, or all too often the lack of a business plan. A...
- Is Self-Employment Right for You?
So, you are considering going into business for yourself, great but first let me ask you why. Why do you want your own business? There are a number of advantages to running the show; however, they can be...