How to Research Your Business Idea

Your brilliant idea may indeed be brilliant--or it may need some work. Here's how to find out whether you're ready for startup.

BY Karen E. Spaeder

Somewhere between scribbling your idea on a cocktail napkin and actually starting a business, there's a process you need to carry out that essentially determines either your success or failure in business. Oftentimes, would-be entrepreneurs get so excited about their "epiphanies"-the moments when they imagine the possibilities of a given idea-that they forget to find out whether that idea is viable.
Of course, sometimes the idea works anyway, in spite of a lack of market research. Unfortunately, other times, the idea crashes and burns, halting a business in its tracks. We'd like to help you avoid the latter. This how to on researching your business idea is just what you need to keep your business goals on track.

The Idea Stage

For some entrepreneurs, getting the idea-and imagining the possibilities-is the easy part. It's the market research that doesn't come so naturally. "It's a big red flag when someone outlines the size of the market-multibillion dollars-but doesn't clearly articulate a plan for how the idea will meet an unmet need in the marketplace," says Aaron Keller, an adjunct professor of marketing at the University of St. Thomas in neighboring St. Paul and a managing principal of Capsule , a Minneapolis-based brand development firm.
That kind of full-throttle approach can cost you. "Entrepreneurs are often so passionate about their ideas, they can lose objectivity," adds Nancy A. Shenker, president of the ONswitch LLC , a full-service marketing firm in Westchester, New York. "Rather than taking the time to thoroughly plan and research, they sometimes plow ahead with execution, only to spend valuable dollars on unfocused or untargeted activities."
Market research, then, can prove invaluable in determining your idea's potential. You can gather information from industry associations, Web searches, periodicals, federal and state agencies, and so forth. A trip to the library or a few hours online can set you on your way to really understanding your market. Your aim is to gain a general sense of the type of customer your product or service will serve-or at least to being willing to find out through the research process. "For example," says Shenker, "if you don't know if your product will appeal to the youth market, make sure you include a sample of that population in your research efforts."
Your research plan should spell out the objectives of the research and give you the information you need to either go ahead with your idea, fine-tune it or take it back to the drawing board. Create a list of questions you need to answer in your research, and create a plan for answering them. "Utilize experts in planning and conducting research sessions," Shenker advises. "They can recommend what type of research is most appropriate, help you develop statistically valid samples and write questionnaires, and provide you with an objective and neutral source of information."
The type of information you'll be gathering depends on the type of product or service you want to sell as well as your overall research goals. You can use your research to determine a potential market, to size up the competition, or to test the usefulness and positioning of your product or service. "If, for example, the product is a tangible item, letting the target audience see and touch a prototype could be extremely valuable," notes Shenker. "For intangible products, exposing prospective customers to descriptive copy or a draft Web site could aid in developing clear communications."

Analysis

When working with firms on brand development, Keller first looks at a business idea from four perspectives: company, customer, competitor and collaborator. This approach allows Keller to scrutinize a business idea before even approaching the topic of brand development. Here's what he looks at for each of the four issues:
1. Company. Think of your idea in terms of its product/service features, the benefits to customers, the personality of your company, what key messages you'll be relaying and the core promises you'll be making to customers.
2. Customer. There are three different customers you'll need to think about in relation to your idea: purchasers (those who make the decision or write the check), influencers (the individual, organization or group of people who influence the purchasing decision), and the end users (the person or group of people who will directly interact with your product or service).
3. Competitor. Again, there are three different groups you'll need to keep in mind: primary, secondary and tertiary. Their placement within each level is based on how often your business would compete with them and how you would tailor your messages when competing with each of these groups.
4. Collaborators. Think of organizations and people who may have an interest in your success but aren't directly paid or rewarded for any success your business might realize, such as associations, the media and other organizations that sell to your customers.
Another approach is to research is SWOT analysis, meaning analysis of the strengths of your industry, your product or service; the weaknesses of your product (such as design flaws) or service (such as high prices); and potential threats (such as the economy). "[SWOT] enables you to understand the strengths and flaws, [everything] from internal information such as bureaucracy, product development and cost to external factors such as foreign exchange rates, politics, culture, etc.," says Drew Stevens, a St. Louis professional speaker and consultant who works with entrepreneurs in researching and marketing their ideas. "SWOT enables an entrepreneur to quickly understand whether their product or service will make it in the current environment."
Whatever your approach to evaluating your idea, just be sure you're meeting the research objectives you've outlined for your product or service. With those goals always top-of-mind, your analysis will help you discover whether your idea has any holes that need patching.

Checking Out the Competition

Assuming your research process has helped you uncover your competition, you now need to find out what they're up to. Shenker advises becoming a customer of the competition, whether by shopping them yourself or by enlisting the help of a friend. "Visit their Web site and put yourself on their list," she says. "Talk to your competitor's customers, too-ask them what they like or don't like about your competitor's product or service. If you conduct formal research, include a question like 'Where do you currently go for that product or service? Why?'"
Your aim is to understand what your competition is doing so you can do it better. Maybe their service is poor. Maybe their product has some flaws-something you'll only know if you try it out yourself. Or maybe you've figured out a way to do things better, smarter, more cost-effectively. Find your selling point. It's going to be the core of your marketing program, if and when you're ready for that step. It's also going to be what sets you apart and lures customers your way.

Read more: http://www.entrepreneur.com/article/70518#ixzz2Qtd6Cb3k

Ways a Hobby Can Boost Your Entrepreneurial Efforts

By Will Caldwell

I would not be the person I am today without the sport of kiteboarding. It has enabled me to travel the world, grow my network exponentially and kick-off my entrepreneurial endeavors.

Here are four lessons I’ve learned on how becoming passionate about something besides entrepreneurship can help your startup thrive:

1. Find what you like. I knew entrepreneurship was for me when I discovered the same passion and drive I found in kiteboarding. Growing up, all I wanted to do was kiteboard, get sponsored and beat my friends. Securing my sponsorship from Cabrinha Kiteboarding was a goal I never thought imaginable. I used that same competitiveness when I launched my own startup. Entrepreneurship can be pretty cut throat, and you have to work 100 times harder than your competitor to succeed. Passion and drive are really the only things that can keep me sane.

2. Become really good at it. Practice and become the best you can at something you’re passionate about — people will respect you for it. My success in kiteboarding has led to introductions and meetings that I would never have received otherwise. Kiteboarding acts as a constant in my life. If I’m having a horrible day, but the wind is blowing, a few minutes out on the water can turn my day right around.

3. Network within your niche. Whether you have a love for cars or yoga, most entrepreneurs and top-level executives have a knack for something other than work. As for the sport of kiteboarding, Silicon Valley cannot get enough of it. Richard Branson and Bill Tai are two prominent business figures who love the water sport. And as a result, I’ve been able to connect with both of them. If you can connect with people on a personal level, they may be more likely to show interest in your business life as well.

 

4. Maintain a source of balance. Juggling 21 college credits, meeting with clients, launching new products, pitching my business at events around Southern California and maintaining somewhat of a social life keeps me extremely busy. However, finding time in my day to get out on the water makes it all a little easier to manage. Fitting in that little bit of exercise makes all the difference in the world — I feel refreshed and ready to tackle the throws of the rest of the day

Will Caldwell is currently a senior majoring in accounting at the University of San Diego.

The article was culled from Young Enterpreneur.

Why not start an Internet business?

There are various businesses you can start up with as an upcoming entrepreneur and startups, one of them is starting an internet business. When I mean an internet business, I don’t mean joining the various scam programs on the internet that asks you recruit others for a few bucks. They may never pay you!

You can always start an internet business, provided you can offer a viable product or service, or take advantage of opening one of many available franchises. Your abilities, desire and financial resources can help determine the type of business and how long it may take to get it started.

When considering starting an internet business you need to determine the type of business you want to be involved with. You have the choice of selling products or services as well as whether you want to sell your own product line or someone else's. The same can be true for service-related businesses. There are several companies offering services that you can resell and make a profit and if you find any of them useful, you may want to be involved.

Whether its reselling Hosting plans or Bulk SMS or having resale rights to e-books and other digital products or reselling Gadgets from major suppliers.

You can also choose to sell a combination or products and services to take advantage of different aspects of the online shopping venture. While niche marketing and focusing on one product line has proven successful, so has being able to take advantage of different needs for different customer bases. Niche markets are more focused while a product mix reaches more of your targeted audience. You can also offer backend products, such as printer paper and ink to go with printers.

Working capital is a serious consideration in starting any internet business and probably the biggest expense will involve marketing your business. A good business plan can help you determine your target audience, which in turn will help determine where you will focus your marketing. This plan should be part of the overall business plan as without a specific market to target, you could end up simply throwing money into the wind and hoping it falls where it will do the most good.

Sustaining growth is another planning process and depending on your product line can be a viable exercise. Every business that sells merchandise should plan to offer products that are considered disposable. Items that customers will need to replenish or replace when used to gain the possibility of repeat business. Some businesses, such as home mortgages, are only able to sell to the same customer once, or maybe twice so they are constantly on the lookout for ways of generating more customers.

A business offering disposable items do not have to continually focus on new customers, rather good customer service and quality products can provide continued growth based on repeat shopping by the same customers. For example, if you sell digital cameras, it may be years between sales to the same customer. However, you can bolster your sales by also offering memory cards and printing services or supplies to bring in additional sales to existing customers.

This service is unique because you can sell the memory cards to Phone, Tablets and other devices and gadgets users. And whether one is into fulltime photography or not, many always want to have their pictures in hard copy for various reasons so a Printing service or sales and supplies of printing papers to others doing the same business.

A full list of businesses you can start up with little capital will be highlighted in the future post, As a review you should understand that running an internet business simply means either taking your normal brick and mortar business online so that a lot of people can see it and contact you for it or promote someone’s else products (goods or service) to millions of internet users in your area or locality or even billions worldwide!

Kalu Samuel Anya is an article writter and serial entrepreneur, 

he can be reached on Twitter: @kalusamanya  Skype: kalusam

for www.macroperfection.com

Entrepreneurship as a key to sustainable development among Youths.

Entrepreneurship  is the key to sustainable development. There are a lot of young people who need to be fully employed in order to assist themselves and their family.

Youths should consider entrepreneurship by monetizing their talents, skills and abilities. They should not be deceived by the myth that money is required to start a business.

True, money is essential to develop a business but NOT to start! Education, training and most importantly: Plan, Plan and Plan. Yes, Planning is important in starting a business.

Youths need to think big but start small, they should look to ways to monetize their skills to help others. The most successful entrepreneurs are those who use their skills, talents and abilities to help people.

Thomas Edison who invented the light bulb was afraid of the dark and he utilized that fear to invent the light bulb and indeed solved the problems of many. So, what are your fears? What are your Challenges? What are your talents? What are your skills?

This is a time to develop your skills and talents by mastering the art through research and utilizing it to help others. Can you cook very well, such that your family and friends can attest very well to the wonderful smell and taste of your food? Then what are you waiting for? Start a food business. Macdonalds, Mama Cass and co. started small, you can too!

We have a very wonderful tool that when utilized very well can turn you to a millionaire overnight. It is of course the Internet! There are billions of people using the internet every second and no matter how rich they are or seem to be: They all have problems!

Another good tool is social networks, there are millions of people on social networks that you can assist with your talent, and you know what? They will gladly pay for your services and tell you: Thank you!

You don’t need to own a fat account to start a business, you just need an idea, a plan and a talent or something you are passionate about, something you will do and always do whether you are paid for it or not!

Certainly, not all business succeed. However we should never fail to try. It is better, far better that we try and fail than fail to try. That will be very dangerous.

An entrepreneur is one who fails 7 times but get up 8 times.

Kalu Samuel Anya is an article writter and serial entrepreneur, 

he can be reached on Twitter: @kalusamanya  Skype: kalusam

for www.macroperfection.com

Do you know that Keeping a Job is riskier than Starting a Business?

It has been taught along the years by society that everyone should go to school so that they can get a good job. The problem these days is that too many people are doing what society have told them to do for years and that is to get a decent job.

When they think of starting their own home based business, they instantly feel like starting one is like a foreign language for them. Starting a business would be too risky. Their mind would reject it.

People would find many reasons why they should not start one. They will find all sorts of excuses why they will not do it. A lot of people, even when they thought about starting a business for months and even years, would still say that it would be a huge risk for them and they can not do it.

In today's world, many companies are downsizing and letting many people go. Doesn't matter who you are in the company. From the regular employee to middle management, to upper management. CEO's, Vice President, supervisors, etc. It does not matter. You are also at risk.

If the company that you are working for decided to let you go, what would you do? Wouldn't this hurt you and your family's finances in a big way.

Many companies even tell a few of their long time employees that their job is secured and there is no way that they would be laid off. You can walk into work one morning expecting to work your regular hours shift and can find yourself invited into a meeting room by the management for like a few short minutes, and then back home again right after that meeting without a job. You can be gone with no warning at all.

Imagine if you had a job and, at the same time, a part time business. If one day the company that you are working for decides to let you go too, don't you think that you would feel safer?

Keeping a job and thinking that it is safer and less riskier then starting your own business is  making a big mistake.

If you have a plan on how to start any type of business, then it would be very smart of you to start it even though you have a job now.

Think about this:

There are plenty of people in the world who had jobs and at the same time had a part time business. One day they lost their job but they did not lose the income that was necessary for them to make so that they can pay every day bills.

They knew that if the day of losing their job would come sooner or later, they would be ready for it and have a business run on the side.

If you have a job and want to start a business then just start it. Sure you will have to have a plan in place, a good idea, the finances, and the right motivation. You MUST take that step in your life. This is for you and your family's sake. You will also have to re-program your mind to think like a business person.

One of the main reasons why people are scared to start a business is really because their minds have been programmed for years and years by their parents, friends and the media to get an education so that it will help them to get a "good job".

Its only logical to conclude that in a world filled with uncertainties especially in the labour force, getting a job and keeping it is a big challenge. I know you may have lied to severally by well meaning family and friends that it’s riskier to start a business than get a job but wait!!!

What happens if you are layed off for no reason and given a large sum of money, remember a lack of business management knowledge then will mean that the money will last for few months!

We are here to assist you start up your business and allay your fears, we are here to make the Complex business process simpler.

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Macroperfection Ltd.

http://www.macroperfection.com