Questions below refer to the following
article.
When
developing a plan for a new business, the entrepreneur quite naturally wants to
eliminate all risk. While it is impossible to avoid some risk, the goal is to
minimize it as much as possible. How can we do this? Thorough research and
careful planning are the keys. There are two parts to good research. First,
you must demonstrate that there is a need for the product or service you plan
to offer. Are there enough people out there who would be willing to pay for it?
Second, you must look at your competition. What do you have to offer that your
competitors do not? Is your product or service of better quality in some way?
Is it cheaper or more easily available? Is there a niche in the market that
your competitors are not addressing? If what you have to offer is identical to
what your competitors are offering, your business is not likely to be successful.
These are some things to consider when evaluating how well you can measure up
against the competition. Once you have evaluated a need for your product or
service and determined how yours will be different from your competitors', you
are ready to begin the next part of your plan— financing.