5 things to research before you start any business
It is really important that you make a good research before you start any business. It can save you years if your business will fail. Whatever business you start, B2C ( business-to-customer ) or B2B ( business-to-business ), you need to ask yourself at least this 5 questions.
Who are your customers?
You need to know who are your customers. Are they businesses or people? Why would they buy your product or service? The best option is that you already have few customers before you start anything.
Will your customer buy more than once?
Think about how many times your customer would buy your product or service. If he would buy more than once that is much better because there is a relationship already made with your customer.
Do you sell a need or luxury?
Ask yourself if your product or service is a need or just a luxury. With other words are you selling medicine or vitamins. You need to buy a medicine but vitamins are good to have but not a must.
How will you get customers?
Of course marketing is one of the ways but you have to think about cost of marketing which depends on how many potential customers you want to reach. Because of that it is important to start from a smaller niche and cost of marketing will be lower.
Where will you find customers?
Define you market and focus on it. Start locally and think about scaling after you prove that your local market works.
From personal experience, my win combination would be:
- Customers are businesses ( B2B )
- Having at least 2 customers before I start
- Customer should buy more than once
- Sell a need, not a luxury
- Marketing on a small niche
- Start locally where you can meet your customers in person