Analyzing the pros and cons of your business idea

Analyzing the pros and cons of your business idea 1

After you have thought of an idea, the first important step is to evaluate your idea by hiring some market research firm to study it. These firms are true professionals and give you a clear and a neutral picture on the nature of your business. They study the demographics of the society where you are operating, who the main customers of your products are and related issues.

The next important phase in evaluating your business idea is to analyze your product from the eyes of your competition, partners and vendors. When working with firms on development of your brand, business management experts suggests viewing the ideas for business from four perspectives: company, competitor, customer and partner.

Let’s have a look at these four issues in detail:

1. Company: Think of your business idea in conditions of its features, the gains to clients, the image of your company, what main points you’ll be using and the central core assures that you will be making to customers.

2. Customer: These are classified into 3 categories. They influence your idea and its changes.
a) Purchasers – They are those who decide to give you business and write you the cheques. In short they are your revenue generates.
b) Influencers – They influence the community or people in their buying decisions and have to be properly attended to.
c) End users – These people come in direct interaction with your products.

3. Competitor: Here too there are three separate groups that you have to keep in mind: the primary, secondary and tertiary. They are placed based on the seriousness of the threats they impose on you and your business.

4. Collaborators: These people have an indirect linkage to your business functioning. Though they are not directly paid for it they may have an interest in your business, like associations, the media and other organizations.

SWOT analysis is another meaningful way to gauge the strengths of your product in your industry; weaknesses of the product you are selling or poor service, high prices etc; Opportunities to amplify your skills and services and threats, such as lagging economy.

Whatever your idea to understand your idea, just make sure the research objectives that you’ve defined for your product or services are being met.

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