Understanding Your Market: 3 Questions to Answer Before Expanding Your Services
Entrepreneurs are constantly considering their next adventure. Whether it’s starting a new company or expanding the offerings of their current business, entrepreneurs always have something new to offer the world.
While it’s tempting to continually launch new projects, it can also be taxing on the limited resources of your current business. So, before you launch your next great idea, be sure to answer these three essential questions.
Is there a market for your product or service?
Before making the investment in developing your new product or service, ask yourself this simple question: is there a base of customers that need this product or service? Along with this, you’ll want to answer whether there is any competition that already addresses this need in a way that is better, faster, or cheaper than your current idea.
Never assume that your untested knowledge is accurate. Before you invest, test your assumptions, so you can develop your products or services in a way that allows for the greatest potential for success.
Is that market large enough?
Now that you know your product or service will address a need for potential customers, it’s important to answer whether sales to that group of potential customers will be profitable enough to sustain the business investment. To put it simply, are there enough customers in that market to make money and sustain a prosperous business?
Is the market concentrated enough?
When launching a new product or service, marketing and sales budgets are always tight. First, understand your resource limitations, and then ask yourself whether those resources can actually reach the audience you need to leverage. It’s one thing to have a great product or service that addresses a real need for your customers; it’s another to be able to let them know that your solution exists.
Strategic Planning for Your New Product or Service
Prior to launching a new product, service, or business concept, it’s essential to create a strategic plan. Joining forces with an experienced business expert can help you answer these and other essential questions, so your launch proves to be a successful one. FocalPoint Certified Business Coach Craig Korotko specializes in developing strategic plans with his clients.
If you’re considering your next business adventure, contact Craig Korotko at firstname.lastname@example.org for a complimentary 30-minute strategic planning session.