4 Essential Steps to Evaluating your Business Idea
You may get inspired after watching the success of your friends or colleagues and feel motivated to start the business on your own. It’s absolutely fine to benefit yourself with open investment and trade opportunities. In order to ensure success, you should first consider checking the feasibility of the business idea. You can’t select a niche just because all others are earning profits. You never know how many of them faced failures with the same idea. Whether you are a fresh candidate or an experienced entrepreneur seeking for product diversification, you must first concentrate on gaining the complete knowledge of the industry you are willing to accept as the next avenue. Lack of knowledge is the primary reason of failure in most of the cases. 90% of setups face failure, not because of lack of capitals, but due to the insufficiency of the knowledge about the products or services. Commercial knowledge includes a set of information like complete know how to operate a setup in all situations. The true success lies in creating a product or service that people actually want and fall in love with. You may have developed an outstanding product without doing market research and assume that people should purchase it as you have invested significant money and time to develop that product, then you are terribly mistaken. An assumption doesn’t work in the real world. Unless you are not sure, don’t proceed.
You might be thinking how you could estimate the success of any product or service before its launch, then you don’t think as a fool. It’s a very valid question. The best way to ensure the success prospect of business setup in Dubai, is to simply test your work idea in the market where you are going to start setup.
Spot out the target market
It’s not about locating the region on the geographical map. It also includes spotting out everything from size, age, the value of money and least but not the least the suitability of your product and services. Online Search is the best way to get the basic idea. Moreover, you can also visit industry associations and trade shows to get a clear idea about future and existing competition. You can review the same products and services other vendors are offering to analyze your capabilities to offer similar products at same or lower prices. This also helps you to estimate your abilities to make the product more valuable without increasing the prices.
Comprehend customer expectations
You may not consider it important, as you believe that those who need the product will eventually buy your products. With the same approach in mind, you can never design the perfect product that truly satisfies customers, unless you don’t understand your customer expectations and needs. To identify their desires, you must know the right age group, sex, social and professional status.
Quantify product demand sensibly
Running extensive marketing campaigns is not possible with a limited budget. You don’t have huge money at initial stages to distribute the product for free all over. You should not hesitate to start the same on small scales. Always ask customers to submit their feedbacks about using a specific product. Also, you should not miss a chance to promote in the local trade show, expos and festivals. Attending and participating in such events will not only let you interact with prospective customers but also with other vendors and industry players. It will also help you to create the good network, which will benefit you in future.
Save the list of your contacts
Don’t ignore maintaining the list of contacts while venturing your project. Whether they are customers, vendors or suppliers, keep on communicating with them. You never know today’s stakeholder will become your future customer. Even if they don’t avail your services, they can refer you to their contacts.
Summary: These are few simple steps you must follow at the initial stages of setting up the new business to test and estimate the success of trade idea to avoid startup failures.