Being your own boss, having to answer to nobody but yourself, that’s how many Americans would like to work. Many even have an idea for a product that could make them rich. And many of those Americans take the plunge and start up their own small business. Yes, oftentimes such businesses fail. Why is that?
In some cases, the reason for the failure is lack of financing or financial management. Sometimes it is fading motivation and dedication. However, most often the reason for the small business failure is the product itself. The product, as great as it originally might have appeared to the small business entrepreneur, often is plain and simply not marketable and appealing to a sufficiently big segment of the population.
Therefore, if you are eyeing the idea of starting your own business because you have come of with this great idea of a product, which everybody will just want to have, put on the breaks and take a step back. Do not invest your life savings until you are absolutely sure, this product can be a success big enough for you to make a living as a small business entrepreneur. But how can you find out, if your product indeed has mass appeal?
You definitely will have to do your research. Market research is essential to find out whether a product will be accepted and is marketable. You will have to present your product to your friends, your family, and even strangers. Seek out their honest feedback. Tell them not to spare any criticism and to give it to you straight. Inquire if they know anybody who can aid you in your endeavor. This could be somebody who knows the business or has otherwise valuable advice for you; or it could be somebody, who might be willing to provide you with the monetary funding you might need.
You should talk to people, who work in your target industry. They know the market. They might be able to tell you what customers are usually interested in buying in the area where you want to establish your business. They might be able to provide you with valuable insights into the market functions, and where to find good resources for your business. And yes, maybe somebody else has already come up with your product and failed. This, too, will be something such industry insiders will be able to tell you about.
Another valuable resource for input on your business idea is the Service Corps of Retired Executives (SCORE). They might have one of their chapter offices in your area. They offer free interviews with one of their members, who can provide you with valuable advice or put you in contact with a specialist within the Corps who will be able to advice you.
If you don’t have the time to conduct all the market research yourself, but have sufficient financial means to do so, hire a research firm to do the work for you. They will be able to provide you with a complete industry report and feedback on how the product might do in the specific market you want to start your business in.
You should also become a member in local and national associations for your particular industry. This will allow you to be up-to-date on what is happening in this particular industry as well as what the competition is doing in your particular area. You can find a directory in the Internet Public Library.
You should also inform yourself about the laws, rules, and regulations, in regards to your endeavor in your particular area. For this purpose, the Small Business Administration’s Office of Advocacy can be of great help as they offer a research function for small business owners.
Another important factor of your small business success is the marketing of your product. This is especially true, if you are up against a lot of competition in a particular type of business, you have to ask yourself how you and especially your product can positively stand out from the competition. What can make you different and special to attract and maintain a great customer base? For this, you will have to come up with a good business concept and a detailed business plan. You will have to come up with a way to convince customers that your product is better than the competition’s. Furthermore, you will have to factor the cost of marketing and executing this distinction into your costs of running your small business. If the cost of adding this distinction to your product is to high, your business and its product might not be marketable enough to gain a sufficient customer base to make it profitable.
Lastly, you should do a test run. This will help you to find out, whether your product and marketing really reaches the target audience. For example, you could set up a stand at the mall or a local market and see how your product sells
If it turns out there is not a huge demand for your product, you can be glad you did your research and did not spend your life’s savings right away. If your product does sell, congratulations, your product now has a proven track record, and you can dream bigger. For increasing the demand of the products, a person can read here on the websites the strategies. The bigger dreams of the person will be fulfilled through the strategies.