Homework (start-up feasibility)!!
Yes, you can wonder about the headline!
But it’s not exactly what you are thinking about homework.
This is purely indicating start-up homework!
Let’s move to our topic.
Are your start-up activities feasible?
By the way, the article is also commencing by asking a question. Of course, new ideas and developments are born out of "questions". OK, so you’ve got a killer idea. Before the idea gets a life as a company, you need to make sure that you have done all your "start-up feasibility analysis". This is an important pre-business planning function which is a homework you do, before investing your time (and money) into the business. It will also help you save time in writing your business plan.
Before nurturing a start-up idea, you must find answers to these questions:
- How profitable is this idea?
- Do you offer a rare product or service not easily found elsewhere?
- Have you identified the Threats? What problems may occur and how you are going to deal with them?
- Did you find the perfect location to establish your product?
- How long will this be relevant?
- Do you have the proper resources to begin a start-up?
- Have you got enough investment to start your business?
Here are some potential things to remember before creating a start-up. Ideas are the basis of the business and it should be unique, but not idiosyncratic. Once you have thought through a better idea, further you can study the competitors in the market which gives you a better perception of your business landscape. Before ideas come into reality, examine what is the trend in your market now, and then figure out the solutions for the threats that you will possibly face in future. Despite identifying the threats, you will face the unforeseen issues, and to conquer the problems, you need to annex the customer’s current and previous buying habits. Your business should align with the current technology and be ready to adopt a new technology.
Find out critical insights through market research like:
- Is there a significant demand for your product or service (market size)?
- what is the willingness to pay, and the preferred price points by the customer?
- what are the available alternatives and the competitors solving the same problem that you solve, and what their differentiation is?
The critical insights will be a major determinant to gain more capital from investors, and ultimately leading to a successful start-up. Location/target market is the prime factor to decide your business growth, and a detailed investigation about it will boost the confidence of your business growth.
Attending events like incubator programs, accelerator programs and guidance from the existing entrepreneurs in the specific business segment will give solid knowledge about business. It helps in foreseeing the possibility of being bought by a larger company or weaving a competitor into your business to be more competitive.
In a business plan, you should focus more on how to move from customer #1 to customer #1000, in a disruptive and rapid way.
Need of Market Research
To find the answers to the above questions, all you need to do is "Market Research or Business feasibility study". It is the most important and primary aspect of becoming a successful start-up in this competitive world.
Starting a business involves stepping into the unknown, and it is, therefore, essential to arm your business with as much information and data as possible, about your target market, competitors, market drivers, and restraints. By doing so, you can know your business growth, realistically.
Market research will enhance the scope of entering into a successful business model. The true facts and reliable data you get from the market research are good enough to earn more profit. In order to take any business idea to the next stage, it is essential to prove your hypothesis, using reliable information, and know whether your idea is a want or need by the target market.
It is vital to conduct both primary and secondary market research of your business idea to fully understand the feasibility of the project and target market information. By showing the primary research to investors you can effectively boost their confidence in your business plan. Secondary research will help you fine-tune your ideas about existing figures about the industry.
Before the start-up sets the ball rolling, you need to come up with an insightful market research and business plan. Companies like ResearchFox (https://www.researchfox.com/services/start-up-feasibility) helps to address and solve the business problems by conducting 360-degree market intelligence study deriving actionable insights for your business model. Startup growth enablement is one among the focus services of the company, and they have a plethora of expertise in serving top start-ups across various sectors and growth stages. Through the extraordinary research capabilities, they are leveraging the enormous amount of knowledge about the market and competition. With customised micro-service offerings like Market Sizing and Growth forecasting, Financial Analysis and Pricing Intelligence, Competitive Analysis, Consumer Acceptance, Venture Capital Pitch Assistance and Business Plan Validation, they help you to produce a sound business model through varied methodologies and analysis.
Before investing in any business idea, it is vital to conduct a market research and survey, which has not only been the primary objective of established start-ups before venturing, but it is also a key component of corporates and big enterprises to leverage the market insights to develop differentiated products and services.
Get some motivational business stories here and boost your confidence in setting up your start-up.
"Success is borne out of incidents"