Have you just come up with an idea for a new business venture? Are you just about ready to turn those ideas into a reality? Before putting in all your time and resources into a new business, you first need to determine whether or not there is a market for your service or product. These are some questions you need to ask yourself:
1) Does your product or service create or satisfy a need?
Is your product or service a solution to a real and existing problem? One way to determine whether or not your product has any potential value is to see if there are people who actually want or need what you are offering.
2) Can you identify your target market?
It is important that you properly identify the type of person who would want or need your service or product. Later on, you will be able to focus your time and energy on further understanding their wants, needs and expectations.
3) Do you have competitors?
If your future business has absolutely no competitors, then it can be assumed that you have no market and that your product satisfies no need. You need to research a little bit more. Take a closer look at how other products and services solve the same problem that your big idea solves. You may not have direct competitors, but you at least need to identify your indirect competitors so you can clearly differentiate your product from theirs.
4) Is your product or service distinct or superior compared to that of your competitors?
Potential customers will always want to know why they should choose your product or service when there are so many other options for them to consider. You shouldn’t just meet a customer’s needs—but meet these needs in a manner that is much better compared to your competitors.
Keep in mind that it is best to first invest your time in research before investing your money in a business. After some thorough research, you should be able to gauge whether or not you should proceed with your business plans. Don’t be discouraged if you learn later on that your business may not work out. You’ve already had one good idea—you will have plenty more in the future!
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