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Explain in
detail how you have established that there is a market for your product.
Describe what market research you have
done and the survey method you have used. Explain why
you have used this method.
Whatever market research you do, to keep consistent and to produce
accurate information, you will have to use a questionnaire.
Ensure your questionnaire includes these questions:
- How many potential customers are there?
- How often will they buy your products/service?
- How much will they pay?
Quote figures where appropriate. Include a copy of any questionnaires
used and a summary sheet showing the results.
The most important part of your market research is to ascertain
if the market you are entering into is big enough to justify you
starting your business.
Before you start spending lots of money starting up your business,
spend some time finding out if there are customers for your product
or service.
In many cases you will be sure there are customers but you will
need to find out if there are enough. There may be many competitors
and not enough customers to go round.
It is also worthwhile finding out how much these potential customers
are prepared to pay. Don’t compete on price alone. It
could be there is a niche market that will pay more than the average.
Finally, you should make an attempt to find out the total value
of the market that you are entering into. This is done by
answering the following questions:-
- How many customers are there?
- How often do they buy?
- How much will they pay?
By multiplying the answers to these three questions you will come
up with an approximation of the total value of the market.
In addition to answering the above three questions you will need
to ask if your potential customers are prepared to change from
their existing supplier and use you! This will enable you
to make a guess at the value of your future sales.
All these questions will need to be rationalised in a questionnaire.
Further Business Advice
The Enterprise Agency offers free and confidential
advice to businesses in North East Lincolnshire. If you have a
business idea and would like to give it the best possible chance
to succeed, then contact the Enterprise Agency on 01472 312121
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