Author: AnanthKumar
Determine the Potential for Profits:
Profit potential goes to the heart of business. The primary reason to start a business is to make a profit. This profit then increases the net worth of the owners, maximizing their wealth. This wealth may be modest in that it supports an individual owner and his family, or it could be a major multinational corporation that has thousands of shareholders who want to profit from an investment. Either way, the purpose to take the risk of business is profit.
Determine Market Viability
It is rare that customers come running to buy your service or product just because you've built it. In fact, being unrealistic in the market viability of your product or service is one of the main reasons business owners are caught off guard the first few weeks and months of a new venture.
It is critical that time, energy, and resources be dedicated to determine the market viability for your venture. Unless you know yourself to be completely objective, you should consider hi9ring a qualified, unbiased third party to do the research and give you an honest, objective opinion on your product or service. Lying to yourself at this stage is incredibly easy to do if you are excited about your venture and believe in its likely success with little or no data of support.
8 steps to determine market viability:
Step 1
Check out businesses in the geographic area you plan to target to determine the level of competition you might experience, types of marketing efforts that may succeed or fail, and demographics of customers who purchased a similar product or service. For example, visit competitor stores and websites, evaluate promotion and sales efforts, and observe foot traffic.
Step 2
Make a list of customer demographics which you believe target customers for your type of new offering share based on your competitor evaluation and expert analyses from industry publications. These demographics can include age, family status, and income, among others. If your budget allows, hire a market research firm to provide you with customer demographics data for local, national, or international sales of similar products or services.
Step 3
Narrow your target market by requesting feedback from a small group of people that have the customer demographics you're considering. For example, buy a list of targeted contact leads from a direct marketing or survey firm, and then, send a questionnaire to the group that asks about their demographics, interests, and shopping habits, such as their reasons for shopping at certain stores and types of products or services they value most.
Step 4
Invite 15 or 20 people from your narrowed list to try a prototype or limited release of a product to get their general responses and feedback about ways you can make the offering better. For example, allow those in your test group to try your offering for 10 days and then ask them to complete a survey or participate in a face-to-face focus group discussion about what they liked or disliked.
Step 5
Change your plan based on your research as needed, and then conduct additional survey and focus group research. Repeat this process until you feel you have a product or service that can succeed with your target customers.
Step 6
Make a list of other factors, aside from customer opinion, which can affect the success of your offering. Such factors include natural or man-made disasters, economic changes, new businesses or emerging technologies. Make a list of alternative methods to attract customers, boost sales, or expand your offering to other markets if necessary.
Step 7
Estimate the initial and long-term costs for developing, releasing and promoting a product based on your research and cost estimates from those directly involved with the project, such as designers, manufacturers, advertisers, project managers and team members.
Step 8
Analyze all of your data to determine if you should move forward with your new product or service. By determining a product's lack of viability, you can save yourself future heartache and financial loss. However, if the viability is not in the market for your product or service, don't give up. You should consider other products and services and offer one that has the great potential. Remember, the business plan is as much about learning what you should not to do as about learning what you should do.
The Makeup of a Business Plan
Although there are many ways to write a business plan, the better business plans use some of the more common sections. The following are the convenient resource that walks you through the business plan process and includes these areas:
Cover page, Executive Summary, Market Research, Product or Service Line, Marketing and Sales, Financial Projections
This is the process of Business model planning and Value creation. These two factors are extremely important before Business setup in Dubai. This information is for entrepreneurs who are eagerly looking forward to start Business in UAE. The one who understand the above Business model or Value creation can now search for the Business Consultants to do their document work for their Business. We, Evergreen Businessmen Services are dedicated consultants who have more than 10 years of experience in Business setups. You can visit our website by just clicking the name. You can also visit our Business setup Dubai Blog for more information
Article Source: http://www.articlesbase.com/entrepreneurship-articles/business-plan-for-setting-up-business-in-uae-7191142.html
About the Author
I, AnanthKumar is working as Marketing Executive in Evergreen Businessmen Services.. I hold an MBA degree from James Cook University, Singapore. I am a company formation specialist in Dubai. I can help people those who want to setup Business in Dubai. For more information, Keep updated to my posts
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