Launching a new business venture requires more than just a great idea—it necessitates thorough research and planning. In this post, we will dive into the necessary steps of researching your business ideas and industry to determine if you have a viable business. We will explore various channels and strategies to help you gain knowledge about your products and services, competitors, and industry.
Understanding the Market Landscape
Before offering a product or service, it is essential to understand what is already available in the market. Many people believe there isn’t anything like what I’m doing, but this is often due to insufficient research and a narrow focus within their immediate circle.
Internet Search Engine:
Begin your research online using a variety of keywords. Search results can vary widely based on keyword popularity and usage. For example, using Google, click the “More Results” tab multiple times to uncover information from lesser-known brands, products, and service providers. Businesses with exact keyword matches or large advertising budgets appear higher in search results, but a lower ranking does not mean a business isn’t a direct competitor or successful. Thorough research involves time and dedication, sifting through information to extract relevant data.
Social Media:
Platforms like Facebook, Instagram, TikTok, and Pinterest are excellent for researching products, services, and businesses. Most businesses create profiles on these sites to promote their offerings and engage with potential customers, and there is no cost to establish a business profile page. Social media can yield better results than search engines (Google, Bing, DuckDuckGo, etc.) by revealing nearby businesses you might not have known about.
Books:
Books are valuable resources for researching various industries, products, or services. They offer insights into industry standards, rates, price points, common management practices, and what to expect when offering services or products. Check your local library or online marketplaces like Book Outlet, ThriftBooks, and Amazon. Google Books can help you search, review, purchase, or find books to borrow from your local library. Reading at least three or four books on an industry can provide a comprehensive perspective.
Business Owners:
Talking to business owners currently in the industry you’re interested in can provide invaluable information. There is a saying that hearing something straight from the horse’s mouth means getting information directly from someone with personal knowledge on the subject. Interviewing someone with real-world experience is always beneficial.
Knowledge & Understanding: Analyzing Your Research
After gathering extensive data during your research phase, the next step is to analyze and understand this information. Here’s how to do it:
1. Organize Your Data:
Lay out all your information and gather insights that were new and unexpected. Make notes of any information that contradicts your initial beliefs or knowledge. It’s common to assume something is a certain way until proven otherwise. Gather all notes on contradictory information as well.
2. Resolve Discrepancies:
Compare the information to understand why discrepancies exist. Not all business owners operate correctly, leading to varying degrees of information. When encountering conflicting information, do some detective work to see commonalities and differences. For example, a woman wanting to start a food truck might get different advice from various food truck owners about industry standards, permits/licenses, and startup costs. To resolve this, consult local, county, state, or government sites and resources, such as your state’s Department of Agriculture, for accurate information.
3. Clarify Facts:
Researching trade association websites and government department sites can help clarify the information collected during your research stage, distinguishing fact from fiction.
Wisdom: Applying Your Research
Now that you have a thorough understanding of the industry and the product or service you want to offer, time to apply wisdom to your decision-making process.
Evaluate Your Abilities and Financial Situation:
Use the data and numbers collected to evaluate whether you can master the necessary skills, outsource activities, or start a business without a loan or grant. Consider how long it might take to find clients. Or establish an online presence and create business partnerships.
Consider Your Lifestyle:
Think about your current commitments. For instance, if you are in school full or part-time, does it make sense to start a business? How will you cover startup costs while working full-time and managing expenses? Do you have spare time to devote to a new venture?
Assess Your Motivation:
Why are you starting this business? Is it because it’s trendy or because you need money? These are not good reasons to start a business. Instead, focus on serving others, which can generate revenue.
By following these steps and thoroughly researching your business ideas, you can ensure that you have a viable business plan and are well-prepared to enter the market successfully.
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