A L Bean & Company

January 23, 2011

Business Plans and The Importance of Research

Filed under: Consulting,News — Tags:
Business Plans
, — artlbean @ 12:48 pm

Performing extensive research for a new business can’t be emphasized enough. Research the market you plan to sell in. For example, if you plan to start a business in Houston, research the business climate, the economy, the types of businesses that do well in that market, etc. You have to understand your businesses potential in that market.

Develop a marketing plan. Research the most effective marketing strategies for the type of business you are opening. Certain types of marketing are more effective for some businesses than others.

Research your product and your potential competitors. Determine your customers’ likes and dislikes. This may give you a competitive advantage over your competition. From our experience, a lot of NEW business owners do not understand their customers very well. Older and successful business owners understand their customers enough to project the potential loss of customers if they raise prices. You should understand how important price is to your customers. Also, determine how important service is to customers. If you are offering a low-cost commodity type product, customers may not expect Mercedes type service. Your job is to determine expectations and make sure you meet
or exceed your customers’ expectations.

In this economy, it is also important to determine how your industry responds to poor economic conditions. In a former article we discussed cyclical versus non-cyclical businesses. Cyclical businesses will experience a tougher time in an economy like the one we have today. Therefore, determine where your business will be positioned.
There is no way to cover everything you need to think about in this article. There are several things to think about in starting to your business in poor economic times and we encourage you to call A. L. BEAN & Company for other ideas.

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