A successful entrepreneur must have the ability to choose the right product and/or service that will offer to the customers on the market for which exists competition. Surely, someone before you has started a similar business and offers some products or services for the same persons on the market. If there is still no competition, but you cannot expect that it will remain same for a long time. The right product and/or service that you will need to choose will show you the initial analysis.
You will surely wonder why there would be a space to enter the market with a product that current or future competition also will offer. We should always keep in mind that the market is changing very quickly. Products which have been selling and most popular five years ago no longer exist now. The way these products were sold before five years is not the same, and today’s opportunities are much greater than yesterdays.
Today there are thousands of products consumed by consumers, and there are thousands of ways that your product and sales methods can be different from your current or future competition. Your job as an entrepreneur is to choose a business idea, so the product and sales methods will be better than what is currently offered on the market. This rule goes on continuously in the product life cycle or your business overall. Therefore, a critical element in this initial phase is initial market analysis.
In the following section are provided some sources of information that will help you for a successful market analysis to select the product that will be offered on the market.
1. Similar Business Locations
Start with the streets and nearby streets where you plan to be located your business. Create quantitative and qualitative analysis of existing businesses in that location and closer and wider surroundings of that location. Using this analysis you will gain a sense for the offers of these businesses that can be your possible competitors.
2. Products and/or Services
You already have an idea, or you’re in business with a particular product and/or service. Start with yourself, and then continue with your family and friends. Think about whether you need these products, would you bought it if you find yourself in the position of a buyer. Are these products something that you can give as a gift to your family or friends? Talk with your closes family and friends and asks them if they need these products and how often they use it? In such a way, you can classify products in terms of theirs demand.
3. Demand Analysis Through Questionnaire
You can make a questionnaire to research about demand for those products. If you have a website or blog you can just perform a questionnaire for visitors.
4. Internet Forums
A second way to test the demand is to go to some forum on the internet and open a topic for your future or current business in terms of different opinions about the product you plan to offer. One disadvantage may be that you do not know what region or area refers to these opinions. On the other hand, you can get a bunch of useless answers in the form of wrong direction. Therefore, although this method is worth trying, be careful.
Browse other topics at the forum that have some connection with your business idea and read and note carefully various opinions of different people. In this way, you will create the image of a future offer and demand about the potential products.
5. Blog Post
If you have your business blog or personal blog you can take advantage to write a post about your ideas. Just elaborate the idea and ask questions that visitors you can respond via comments.
6. Statistics Bureau
On such a web site, you can find monthly and annual statistical reports on various industries and activities under the national classification of activities where you can see how in different markets customers spend their money.
7. Newspapers, Radio, TV
Look in newspapers, radio and TV to find the ads of the products that are offered. With a particular attention note about everything that is happening in your particular industry.
8. Potential Suppliers
Find the suppliers of those products in the yellow pages. Call to send your offer via fax or email. In such a way, you can receive valuable information about different offers.
Google is the biggest database in the world with information from all possible areas or industries. Search Google for products that you analyze, you can get a bunch of valuable information that you can use in later stages of your business.
10. Hire Professionals
Finally, you can leave all this to be finished from someone else, which will save considerable time, but on the other side will cost you money.