Three Must-Do Tips to Start a Small Business

market research

STOP making mistakes when starting a small business. Pick the best niche, do the research and find success before you start a small business.

A small business is the backbone to the American way. Why not start one right now, make lots of money, and spend only a few hours a week working? STOP! If this were true, we would all own a successful small business, but this is obviously not the truth. In fact, 31% do not survive two years and the failure rate is growing higher each year, due to the economy. So how can the potential small business owner be a success? Just follow these three steps to increase your chances for success.

Idea Generation

The idea for the new small business is key to the overall success. We have all heard “do what you know,” “work in the field,” and “get educated.” What we haven’t heard is that the success or failure of your idea that your small business will be built on, is not about you. It is about your client base and what they might hire or buy. Therefore, it might not be the same thing that you are selling. A future step will help you focus on the right idea but don’t be fooled, not everyone may love your product or service as much as you. So, don’t design it or build it before you complete the next step. And certainly don’t rent space until you have more information.

Research

You’ve thought about an idea for a long time now and know that it will be a success, so why not jump in? You could be wrong and probably are. How do you know? Research, the next critical step that demands doing before you start your endeavor. What do you research?

  • Competitive analysis- Look at all competitors and try to define your idea towards a niche in the market. Call companies in other areas that won’t compete with you and discuss what they have found sells, and where their niche is? View the prices and costs associated with your idea. See what vendors are used and what advertising is done.
  • Find your client base- Do the demographics for your area. Be specific about your clients: age, annual salary, sex, children, nationality, to name a few. Narrow in to where they live, shop and read.
  • Potential clients- Produce a questionnaire centered around your product or service. Simple, straightforward questions are answered easily. Would you use my product or service? What do you use? What do you pay? What is this product or service worth to you? What is missing that you would like available? How do you find these products or services? Is there anything special you need in regards to these products and services? Now that you have a list of 10 or so questions and you know where your perspective client is, go there and ask.

Redefine your idea

By doing the research, a new idea should be developing. A niche that a perspective client would buy for a fair price. If you are still interested then start here. Search out SCORE and find yourself a mentor to help on the way.

Through careful planning and research the perspective small business owner can raise the odds of success and start with an idea that has been defined into a sellable niche for future success.

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