One of the key questions that you need to ask yourself is whether your idea for a business is actually going to work.
In thinking about your idea, there are three questions you need to ask yourself:
Is there a market for what I want to sell?
Can this market reach me easily enough to let them buy?
Are there existing companies competing with me?
Whether you are offering a product or a service, there needs to be someone who wants to buy it in order to turn your idea into a real business. In many cases, you’ll already know enough about your potential customers to answer this. For example, if you are trying to set up a home hairdressing service, you’ll probably already have customers who will want you to carry on working with them.
In other cases, though, you’ll need to do a bit of research. Create a detailed document looking at who your potential customers are, how many of them there are, and how much disposable income they have. If your product is limited by location – ie you’re providing a local service – think about how many of your target market live close by.
Next, do some research on competitors. Few businesses are so unique that they have no competition, and knowing who your competitors are and what advantages you have over them is crucial. If you’re a local-based business, use the Yellow Pages or Thomson Local Directory to find the competition. Also check out any relevant trade publications for potential competition.
The next step
What skills will I need?
Should I quit the day job?
Getting the right advice
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