Big businesses launching new products or services dedicate resources and finance to undertake extensive research. And they do so for one very good reason. They want to avoid spending time, effort and money launching a product or service that’s unprofitable and could cause reputational damage. If you’re thinking of setting up a new business, you should do the same.
Your priority should be to ascertain whether there’s a market for your proposition. What do customers ACTUALLY want? What do you know of the existing competition? What are the key market trends and issues? Starting to trade in ignorance of these factors is fraught with danger.
Here are some questions to consider:
If a business owner approached you without being able to answer a good proportion of the questions above, would you be inclined to invest in that business? Apply the same standards you expect from other businesses to your own.
Undertaking this type of research is essential to understanding what differentiates you from the competition and defining your value proposition. Here are a few ideas to get you started:
This article was written by the career coaching experts at Chiumento.
Define your business’ value proposition with the support of an experienced business coach.