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Research Your Business Idea

by Tash Hughes of Word Constructions (www.wordconstructions.com.au) 

Before launching your great idea as a business, it is wise to check out if it is a viable proposition.

You may have a great idea, but if people don’t need or want to use it you won’t make any money. Think about the business of selling umbrellas – would it do better in Hobart or Alice Springs? Would an infant massage class do well in a retirement village? How about a Porsche dealer in northern WA?

So before planning too far, it is a good idea to research your business concept to see if it is workable. You need to research whether the idea is saleable, the appropriate location for it, who your customers are and what they like, what price level will be acceptable and whether a lot of other businesses already offer your idea.

There are many ways to research your business idea, and it’s probably best to use more than one method to get balanced results. Informal research can give you some great ideas and insight into your customers, but formal research is likely to produce better figures and statistics.

Some suggestions are

Talk to everyone you meet and see if they would use your business

Use the yellow pages and internet to see how many others are doing the same thing

Observe people’s responses and questions in chat rooms, letters to the editor and talk back radio programs. If they are asking for your service/product, go for it!

Speak to some business experts and listen to their advice

Check if any upcoming technology would make your idea obsolete

Pay a market research company to test reactions

Find relevant statistics from the ABS or other reputable sources

Do a survey or poll. Make sure you offer it to the people you intend selling to – there’s no point polling teenage girls about a clinic for balding men. Polls can be run through websites, newsletters or in person. Be careful to run your poll so that people can only respond once or your results may be useless.

Look at other local business and determine what sort of customers they attract

Look for competitors and industry bodies to gain an idea of going prices and what is currently on offer

Join some business networks and listen to other business owners, in general and specifically those with a similar customer base as your idea.

Do a trial run to see if the idea does work. For instance, sell products at a market stall, offer your services to a community group or do a fundraiser with a local school. Watch the responses and listen to any feedback you get.

Read business magazines and articles to learn about new trends and growing industries

 As each business is different and appeals to a different customer base, you need to choose the research methods that suit. Be a bit creative, but most importantly, listen to what people are saying. One throw away comment during the research phase may be the lead you need for successful marketing of your business.

Tash Hughes is the owner of Word Constructions and is available to solve all your business writing problems! From letters to policies, newsletters to web content, Word Constructions writes all business documents to your style and satisfaction.

This article is available for free use on your web site or in your newsletter.

It must be acknowledged as written by Tash Hughes of www.wordconstructions.com.au and copyright remains the property of Tash Hughes.

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