Get to Know Your Market before Creating a Business Plan
Research the Marketplace to Become a Successful Business Owner
As an entrepreneur, there are many steps to consider before you set up shop. It’s important to do your research before you invest all your time and savings in your own business.
The first thing you’ll need to do is to do some product and market research. It’s not enough for something to be trending, because trends are fleeting and you need to make sure that your product will stand the test of time, or that you are prepared to adapt and change with the latest trends. Just because the whole world is going gluten-free and you make the best gluten-free muffins in your office, doesn’t mean that this will translate to a successful business. Everyone loves a free muffin, gluten-free or not, but what happens when you start charging for that muffin? Will people still want it when it comes with a price tag?
Your gluten-free muffin business may just be the next big thing, but you need to do the research to make sure that your business will profit. Do you even know how much money goes into making one muffin? And then you have to put a price on the time it took you to bake it, package it, deliver it or ship it. Going independent is the biggest, riskiest, investment of your life. Don’t go into it unprepared.
It’s the same with any business endeavor. Passion is important, but it will only get you so far. Having a business plan written is crucial. You have to be organized and know what the market is doing in your business. And more importantly, you need to know how to get in touch with your target customers and potential investors!
Writing a business plan will also force you to be specific about your business goals. It forces you to consider the industry you are in and what it is doing today and what the future holds. It will help you put into words why your product or service is important and how you expect to sell, distribute and support your business.
If you don’t know the answer to these points, then you are not ready to write your business plan. It’s time to do some more market research and homework on your industry. Meet with some key people, ask for advice. Then come back when you’re ready and start creating your plan. Trust us, you’ll thank us later!
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