Should I research my new business idea?

Should I research my new business idea?

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Should I take the time to thoroughly research and perfect my offering or should I just launch it and improve it as I go?

I would definitely take the time to research and perfect my offering as best I could prior to and around the time of launching.

Why not just launch my new product offering, it will save me money?

While your new product offering may be an instant hit and earn you big money, without any research, spending money on developing your product offering in advance only for it to fail will also cost you lots of money and potentially put you out of business before you even start.

Just because you have a great idea does not mean you will necessarily know success.

How can research help?

Many companies spend years and huge amounts of money in researching their target market and developing products that will meet their customers’ needs, resulting in huge success.

A well-researched product is a lot easier to promote and gain trust and buy-in from manufacturers and/or retailers.  There is less risk involved when you can show manufacturers and retailers the researched value of your product. This is true for any other trade partnerships you may be considering.

For the same reason, the more you research, the more likely the success of your product will be, because the more you know what your customer (target market) wants in terms of an actual product or service as well as price and where your offering fits into the marketplace, the easier it will be for you to provide a match to your product offering.

 

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I do not have the resources to do extensive research, what now?

There are always ways you can test the water without spending huge amounts of money.

For example, you can set up a web page or Facebook page pertaining to your new offering and see how many hits you get, giving your customer the option of leaving comments as well as placing orders online. This will give you a good indication of interest and demand.

Irrespective of whether you already have a business or not, you can always sell your offering and market it to those in your social networks, but be sure to reach out to your correct target market.

Grab your opportunities and take risks, but know there is wisdom in being prepared.

In closing, I do not believe one needs to exhaust all possibilities and be perfect, but one does need to know who your target market is where you fit into the marketplace, and if there is a demand for your product offering.

I would also recommend engaging with customers regarding your product offerings to hear what they have to say and where necessary, make adjustments and improvements in the offering, thus perfecting it and improving on it as the business develops and grows.

Darren Ryder
Darren Ryder is a business mentor at The Hope Factory, specialising in helping SMMEs establish and grow their businesses. He is passionate about South Africa and believes entrepreneurs will play a big role in our future economic development. Historically he has started and run his own business, having come out of full time ministry and 16 years in the manufacturing and textile industry, with a sales and analytical background.