HOW TO RESEARCH A BUSINESS IDEA

 The process of determining either the success or failure of one’s business idea takes the following steps;

1. The idea stage

This involves getting the idea and imagining the possibilities. Market research is conducted. One can gather information from industry associations, web searches, magazines, newspapers, government departments, e.t.c

The aim is to gain a general sense of the type of customers one’s products or services will serve.

The research plan should spell out objectives and give the entrepreneur information that he or she needs to go ahead with the idea. The entrepreneur should utilize experts in planning and conducting research sessions.

2. Idea analysis

This involves evaluating the idea that has been generated. The idea can be looked at from four perspectives, i.e company, customer, competitor and collaborators as discussed below.

- Company

One can think of an idea in terms of its product/service features, the benefits to customers, the personality of the company, what key message he or she will be relaying and the core promises to be made to customers.

- Customer

There are 3 different customers in relation to someone’s idea. These are purchasers (those who make a decision to buy and pay), influencers (individuals or organizations or group of people who influence the purchasing decision) and end users.

- Competitors

These are people or organizations providing products or services that serve the same purpose. These can be primary, secondary or tertiary competitors depending on how often someone’s business will compete with them.

- Collaborators

One can think of organizations and people who may have interest in his or her business but are not directly paid for any success of the business such as associations, media and other organizations that sell to final consumers.

- SWOT analysis

Analysis of the strengths, weaknesses, opportunities and threats of the product will enable the entrepreneur to understand whether the product/service will make it in the current environment.

3. Checking out the competition level

One can talk to his/her competitor’s customers and ask them what they like or do not like about the competitor’s product/service. The aim is to understand what the competitor is doing so that he/she can do it better.

4. When the idea looks like a flop.

After the first three steps, someone may find out that his/her idea is the one with holes. This does not mean that he/she needs to scrap the whole thing and resign him/herself as an employee. Sometimes it may need to be re-worked. One needs to take time and re-focus his/her energies and determine why the idea needs some tightening.

This could be the best predictor of future success.

5. When the idea is ready to go.

The market research conducted should be a good indicator of where one needs to go next with the idea. The key factor one needs to consider is pricing. For products that have close competitors, one should set prices with respect to the competitive position. If the pricing structure is not working one can alter it.

If possible he/she can test different pricing offers as he/she goes and determine what works best.