It usually starts with “eureka!” when the bright business idea finally dawns on you. But to be sure that your brilliant business idea does not remain a brilliant idea on that piece of cocktail napkin, there is a process which you have to go through. This is to make sure that you are ready to start the business.
More often than not, would-be business magnates get so excited with their idea that they forget to study the feasibility of their business idea completely. It is indeed true, that some business ideas will work, with or without having to do any homework – like market research, market feasibility study, etc. Unfortunately such situations happen rarely.
It is commonplace to hear people asserting that so-and-so is a multi-billion dollar industry, but this does not tell you how much of that billion dollar industry your grand business idea can capture. Doing a thorough market research is the only way you can judge the feasibility of an idea, as without having done your homework, you would be spending your valuable time, energy and money in unfocused and untargeted activities.
The goal of the market research should be to know the current demand, gaps in the market, target segment of your customer, target territories of your product or services, thorough knowledge about the competing products or services available and many such areas. For instance, if your business idea involves a product or service targeted for new mothers, make sure that you include a section of the target segment in your research, to check whether your idea is acceptable to them and they are like to try it.
Hiring the services of professional market research and patenting companies such as Invent Help to plan and conduct the research is helpful in many cases. They can offer valuable advice on the type of research you need to do, formulate the questionnaire and provide unbiased information about everything you need to know.
A business idea can be approached from four perspectives: company, customer, competitor and collaborator. From the point of view of the company, you need to analyze your idea in terms of the products/services that you will market, the features and benefits, the profile and the core competence of your company.
From the customer’s perspective, any product or service will have three types of customers: the decision taker for the purchase, the influencers of the purchase and the end users. When analyzing your business idea, you need to take all the three customer segments into consideration.
Then consider the competition scenario. Who are the main players in the market? In which way can you make a difference to your own products/services? What are the competition promotional claims? Knowledge of your competitors can help you fine-tune your business idea as well as tailor your own promotional claims according to the existing gaps in the market as explained by InventHelp – patenting agency, and you can read the InventHelp reviews on consumeraffairs.com.
“Collaborators” would mean those people who may have interest in your business but are not directly remunerated or rewarded for the success of your business idea. Associations, media, agencies are such collaborators who help you market your products or services.
Another approach to assess the success or failure of your business idea is to do a SWOT analysis. SWOT stands for Strength, Weakness, Opportunity and Threat. This analysis helps you have an overview of both external and internal factors which will influence your product/service. Internal factors include cost of production, uniqueness of your product, etc and external factors include exchange fluctuation rates, political conditions, competitors plans etc.
Thus having a brilliant business idea is simply the beginning of a long journey. You have to understand how to produce and market the product or service at the optimum cost, which will help you gain market share and make a healthy bottom line at the end of the day.