Now that you have your own business idea and want to start writing your business plan, the first step is to go out and do your research. What do you need to research about? Well, you need to look at both the industry and your market.
Checking the industry means checking out your competitors. Check for each one’s value proposition (what do they promise the consumers). Check for the components of their products and services. Check on what need do they satisfy. Also, look at their pricing, where do they promote, what message do they convey through their campaign or advertising materials. If it is a service that they offer, try to check on the processes that they have.
Industry scoping also means checking if you have sufficient and reliable suppliers to sustain your business and how much would it cost to get these supplies. It also means checking for rules and regulations that are set for your industry (if there are any).
For market scoping, you will need to know who it is exactly you are selling to. What I normally do for the businesses that I have is I go through the demographics and the psychographics of my target audience.
When we say demographics, it’s identifying the socio-economic class, the age, gender, employment status, income, etc. These are information that can readily be set and measured (quantifiable).
For psychographics, we define the activity, interest, opinion (AIOs), behavior, attitudes and values of the audience.
The question of some may be, “BUT how do you identify your market? How do you know that this is the right market to tap?” There is no exact science or certainty that the market that you defined will be the right market on the onset or upon introducing the product. There will be a possibility that you will have to adjust later on.
What I do though before launch is that I test the waters. You can test the concept or the prototype with your market. You can do a survey or result to market research. Methods that you can use may be FGDs or focus group discussions or IDIs or in-depth interviews. With this, even if it’s not a 100% guarantee, at least you know that there may be a 70 or 80% chance that you are hitting the right market.
Do you have a business idea that you have in mind right now? Did you do your research? Do you need any help? Feel free to drop me a message so that I can email you back and I can help you out.