The more you research your prospective market and the feasibility of your business plan, and the more specific the information you gather, the lower your overall risk will be.
Decide what your company will do and its size and location. Next, determine who your customers will be, what they want, and why they should do business with you. Also determine the size of your potential market and if there is sufficient need for a new business in that market.
Analyze the strengths and weaknesses of your company and of the competition. It may be helpful to write a list of questions, such as:
- Who are my competitors?
- What are they doing right? Doing wrong?
- How can I capitalize on their weaknesses?
- Why should their customers give me their business?
Information can be gathered from a number of sources, including industry associations, web searches, periodicals, governmental agencies, and even from your competitors' customers
Have a clear understanding of your business and of your target market before setting up your new enterprise.