It’s surprising how many new business owners start their projects without having the information they need to be successful. They don’t take time to do the research necessary to be able to move forward with confidence.
Many don’t even look at producing a business plan, which means they don’t know the answers to 6 essential questions that will set the foundation for their new business. Because of this, they often fail. The difference between success and failure is seldom making one wrong decision. It is, in fact, a series of wrong decisions made by people who don’t have the vital information they need to make good decisions.
Finding the answers to these questions, you will enhance your chances of making better decisions and knowing where you’re heading with your business.
The Key Questions A New Business Owner Needs To Ask Are:
- What is the demand for your product or service?
Knowing the demand for your product is vital. It doesn’t matter what business you’re in, whether it’s offline or online, knowing there is a demand for your product or service is the first thing you need to find out.
If you’re going to work your business on the internet, you need to know how many searches are made every day, week, month and year for your product or service. This is a good way to estimate how much demand there is for what you are selling. More demand equals more chance of success.
- What is the available supply of your product or service?
You need to know how many businesses are already selling the product or service you’re offering. That way you can accurately estimate whether there’s room in the market for you too.
- Who are your Competitors?
It’s not enough to know how many competitors you have, but know who they are. For example, would it benefit you to enter into a business, knowing you’re entering a market with several “big players” that have large advertising budgets? What if your biggest potential competitor is a non-profit organization that sells your product or service at a ridiculously low price or even gives away for free?
Knowing these things are essential for you to know your idea is a good one before you invest any money into it.
- What is the best pricing model for your product or service?
Before you can sell anything, you need to know the range of prices you are likely to encounter in the marketplace before launching your new business. When you discover the highest and lowest prices offered for your product or service, you’re in a great position to set a price structure to encourage sales and also generate a fair profit.
- How are your competitors promoting?
How is the competition promoting their business? What competitors say in their advertising and marketing campaigns can give you some good insight into how they promote the product or service. Knowing what words and phrases they target for Pay-Per-Click ads and other places where they advertise are important so you’re in a position to be able to take them on. Getting into similar places to advertise means that something is working, otherwise they wouldn’t be advertising there would they? It’s at least worth testing out. You can also look and test out other places that may have escaped their attention.
- What is the market “buzz” for you product or service?
Successful online companies like Amazon, Google and Microsoft (or successful offline companies too) wouldn’t even think about launching a new product or service without carrying out a thorough market analysis and neither should you.
An analysis report will help you identify niche markets that are crying out for your product or service. This can certainly help to increase your chances of success by targeting the right people, in the right place, at the right time.
So, there you have it. Essential questions you need to ask as a new business owner. Getting this research done is vital to your business success and will help you to produce and document a useful business plan. Here’s to your success.