A Journey into Business

So you think you have a Great Idea for a Business? Having a great idea for a business is one thing but before launching full steam ahead it makes sense to have some evidence to support this, find out if other people think it is a good idea too. People often think they need in depth analysis with lots of tables and charts, sector reports, customer demographics etc. etc. In some cases this might be necessary but generally there are some basic common sense questions that we need to find the answers to. By carrying out market research we provide evidence that our business idea is viable; there are things that we need to know rather than taking a guess at, making assumptions is a dangerous thing to do. We need to understand the market place, and our customers It is usual to begin testing your ideas with family and friends, but be warned. “Be cautious when you ask the opinions of family and friends as they can be biased and they will usually tell you what they think you want to hear. Always seek independent, constructive advice.” Alternatively, your family and friends may feel the need to protect you from disappointment, usually because they can’t see how the business will work. More to the point, they can’t see or believe that they could make it work and if they can’t, surely you can’t either? Recognise that these are their self-limiting beliefs. The internet and use of search engines has made a huge difference to the way in which we are able to carry out research. In the past it would have taken months if not years to collect, in fact it’s hard to imagine life without Google. In addition to desk research it is also important to carry out some field research – talk to people, surveys, questionnaires, interviews, observations and test marketing are important too. Based on the information that you collect you can see patterns forming, you will identify trends and begin to collect statistics which will help you to make predictions about the future. Although we can make sensible and often pretty accurate predictions this research is based on historical information which comes with no guarantees for the future. It is still down to you to make it all happen. Your research is important; a business that understands the market, its customers and competitors and uses this information effectively will sell more. You Need to Know: Who will your target customers be? “I now realise how important it is to know who you are targeting. What does your typical customer look like – age, gender etc. what are their habits, what do they read, and what other products do they buy? How can we encourage them to change their buying habits and buy from us?” You need to be clear about your target market, know who it is you are planning to sell to so that any advertising or promotional activity you carry out hits that target. You can then be sure that you are using language which is understood by your potential clients and that they are receptive to it. For example if we know that our target market is professional women aged between 40 – 60 the language you use will be quite different to that which we would use to sell to a teenage market. It may be that you want to sell a wide range of products to all ages, male and female. This may be the case but if you try to get a message across that is totally inclusive you will most likely dilute it to the point that nobody is really sure about what you are offering or to whom. Work out which section of the market is going to bring in the best returns and focus on them first. USP (Unique Selling Point) Why should anyone buy from you? What is so special about what you have to offer? What is your unique selling point – USP? You need to give your customers a good reason to choose you to buy from. Unless you have a new product there is every chance that your potential customer already has a supplier, so why should they change and buy from you? It could be that you are the best at what you do; it could be because of the excellent customer service you offer, the range of products, or the design of the packaging. The one thing you don’t want to aim for is to be is the cheapest. There is only ever one company that is the cheapest and by competing to be cheaper you won’t make any money. You need to charge enough to enable you to do your job properly, to give added value wherever possible and to build customer loyalty. People who always buy the cheapest generally have no loyalty.