Nov 10, 2009

Know Your Market Before You LeapBy Paul B. BrownNYTimes.com

While it is hard to argue with Peter Drucker’s much-quoted aphorism that “the purpose of a business is to create and keep a customer,” it does raise a question. What is the best way to discover whether customers want what you’re selling before you open your doors or before you add a new product or service to your line?

After all, you don’t want to invest a lot of time, effort and money into something the market doesn’t want. CVTips.com, a job-search Web site, explains it this way: “You have to be absolutely sure of market viability, and have a trustworthy idea of projected revenue. Imaginary revenue isn’t much help when you need real money. Your bank and creditors won’t be too impressed. Sales are where the money comes from, and you need to be very clear on what’s realistic and what’s not.”

How do you find out if there is a market for what you want to sell? The following items offer some simple tips.

HOW IS THIS DIFFERENT? Despite the enthusiasm you have for your new idea, it is extremely hard to come up with an offering that is both one of a kind and has no competition.

Read complete article.