We entrepreneurs tend to come up with new business ideas
about once a week. It is a blessing and a curse, isn’t it? But every once in a
while we do come across a winning idea. And sometimes we fall so in love with
those winning ideas we fail to see its little faults. Before you know it you’re
executing a business idea you know nothing about! So before you get blinded by
your sexy new idea, let remind you to do your research. If you jump to quickly,
you’re sure to end up with shattered dreams and a ton of bills.
What research should you conduct before moving forward with
a business idea? There are three components you’ll want to look at: your
company, your clients, and your competition. I’ve put together a few questions
you’ll want to ask yourself before executing a new business.
Company
What service or product are you going to provide? Are you
going to work directly with consumers or are you going to sell to distributors?
What size will your company be? Will you have a physical location or are you
going to be web-based? How will you market your brand? What will be your
message?
Clients
Is there a market for your service? Are you selling to men,
women, or children? Or all three? How old is your client? Where do they live?
How much money do they make? How will you engage them? Why do they need your
product? What is the best way to reach them?
Competition
Who are your competitors? Are they successful? If so, what
makes them successful? What would you do differently? What makes your idea different?
Will customers leave your competitor? How will you take their customers?
Make sure you have well researched answers to these
questions with real facts and numbers—not just something you Googled. And don’t
do all your research sitting at your computer. You’ll have to hit the pavement
and visit your competitors, hang out where your customers spend time, etc.
Answering these questions honestly will give you a boost of
confidence to start your new business. When starting a new business, you have
to expect surprises, but you can prepare to lessen those unexpected situations.
