You need to research your target market and your competitors carefully.
A common misconception is that entrepreneurs who fail simply lacked sufficient funding or did not put the right team in place. In many cases new businesses fail because they have not spent enough time on researching their business idea and its viability in the market.
There are certain criteria you can use to establish this:
Does your product or service satisfy or create a market need?
Can you identify potential customers?
Will your product or service outlive any passing trends or capitalise on the trend before it dies away?
Is your product or service unique, distinct or superior to those offered by competitors?
What competition will your product or service face – locally, nationally and globally?
Is the product safe?
Does your product or service comply with relevant regulations and legislation?
Can you sell the product or service at a price that will give you sufficient profit?
Market research can play an important role in answering many of these questions and increasing your chances of success.
How much research you do will depend on the time and funds you have available. You could:
informally canvass the opinion of friends
talk to industry contacts and colleagues
survey the public about whether they would use your product or service
ask customers of competing products what improvements they would like to see
set up focus groups to test your product or service
monitor what your competitors are doing
look at what has and hasn’t worked in your industry or market niche
study wider economic and demographic data
The more information you have, the better placed you will be to make your business idea a success.
By Business Link