People have a variety of reasons and motivations for going into business. Going broke is not one of them. A viable idea needs to be workable, sustainable, and above all, profitable.
Working out if your business idea will be viable can be achieved by doing a feasibility study. Regardless of whether you are starting a new venture or buying into an existing operation, thorough research will help you move forward into a successful business future.
A feasibility study is where you undertake a fact-finding mission of your potential market to work out whether your idea will work or if some refinement of your idea may be necessary.
The results should give you objective answers to primary start-up questions, such as:
The feasibility study will give you an objective evaluation of your idea, in a format that can later be used in the development of your business plan.
To get more ideas on how to conduct a feasibility study, check out the Business Guide, Is it feasible? Should I go into business?
Market research is a most valuable tool for all businesses. It’s the process of gathering information to help you make informed decisions about the marketing of your business. Statistics and other market research data help you understand your potential customers and their needs, as well as what your competitors are doing.
Getting a good understanding of market trends is essential for you to make the most of your business opportunities. Look for information in market reports, government statistics, trade publications and industry association publications.
There are two types of market research:
The Australian Bureau of Statistics is Australia’s official statistical agency. It provides statistics on a wide range of economic and social matters. There are also a number of other government sources of statistical information.
A thorough compilation and analysis of your research information will improve your understanding of your target market, location and demographics, and competition, and give you an opportunity to examine the true viability of your product or service.
For further reading, go to the Researching your Market business guide.
Marketing in a small business means attracting and maintaining customers. Matching what people want with what you can profitably supply is what marketing is all about.
A marketing plan assists you to integrate your total marketing effort. It ensures a systematic approach to developing products and services to meet and satisfy your customers’ needs.
When you're writing a marketing plan you need to be clear about your objectives and how you'll achieve them. A good marketing plan sets clear, realistic and measurable objectives, includes deadlines, provides a budget and allocates responsibilities. A plan can consist of these elements:
Remember that your marketing plan should remain an ongoing process throughout the life of your business.
Click here to access a marketing plan template.
For further information about marketing, work through the Marketing Your Business business guide.
Hard copies of any “How to” business guides can be attained by contacting Business Point.
Phone 1800 440 026 or email businesspoint@development.tas.gov.au .
