Professional business plan writers will sometimes spend more time on market research than any other aspect of preparing your business plan. From a professional viewpoint, market research is one of the most important aspects of business planning process. It is a substantial component to creating a solid foundation in your plan. There are many specific reasons why Professional Business Plan Writers view market research this way:
Market research supports the product/service – Professional business plan writers know that the best way to get feedback on your products or services is to go directly to target customers. One of the most important parts of market research is the insight you gain from surveying, interviewing, and observing your customers. The greatest idea in the world will go nowhere if people won’t buy it so hearing from your customers that they would intend to purchase your product is an important step to a successful business.
Market research identifies competitors – It’s not enough to know that clients like your products or services, you need be sure they would favor yours over the competition. This starts with identifying all your main competitors and that is what Market Research will do. Once identified, professional business plan writers can then seek to understand how your products or services will stack up against others.
Market research reveals threats and opportunities – When studying your competitors, that is when many of your greatest threats and opportunities will become evident. The entire process of market research allows professional business plan writers to continue to identify them. They could also be related to regulations in the industry or area. It’s impossible to describe everything that will be revealed but, it’s indisputable that market research serves this function.
Market research validates your location – If you are planning to have a business that will be based on local business only (or in large part), location will be everything. Even beyond that, market research about your location will help you define costs and evaluate other infrastructure needs that your business will need. Professional business plan writers rely on market research to either confirm that where you want to locate is a good idea or open you up to considering other places.
Market research informs the financials – Arguably one of the most important parts of your Business Plan is the financials. This is where professional business plan writers begin to quantify things based on market research. The market research aids in determining the prices you will set. By choosing a location, that will contribute to your total revenue potential as well as cost expectations. Even if you aren’t local, you will have identified the total market and your target market share. All of this and more contribute to your financials in the end.
Market research ties together the entire plan – Ultimately, it’s what you learn in the market research process that professional Business Plan Writers see as the glue that holds the business plan together. It confirms your beliefs, it tests them and, will most likely make you reconsider some things that will make your plan better. Whether explicitly stated or not, market research becomes a key part of the foundation of your overall plan.
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