6. Market Research
This research should help you to understand who your market is and how it behaves as well as what your potential customers expect from you, your products and/or services.
Market Research can take the form of field work and research from your desk (internet and books).
Research other businesses and their customers that are providing similar services. Research locally first.
In the field ask potential customers what they think of your business idea and product. Test whether they will buy your product.
Ask questions like:
‘Are you happy or unhappy with the product?’
‘Would you buy my product at ‘x’ price?’
‘Would you buy from this location e.g. online website?’
‘Do you already buy from similar businesses?’
Testing your product:
What products did you try to sell and at what price.
What did you learn after test trading.
Are there things you have decided to change because of what you learnt or because of the feedback you received.
Cashflow and cost analysis
Back-up plan. Have a Plan B. This might just include on your reducing your costs or having a smaller inventory to save on costs.