SME startup corner

What’s the most important thing to get right when you’re starting a business? I believe the answer lies in knowing the answers to four basic questions:
1. Do I want to start small or big? (amount of investments required)
2. Who is (or will be) your customer? (target market)
3. What problem will you solve for them? What product or service are you delivering and how will that change their life or business? (need or wants in the target market and benefits a customer gets for consuming your products)
4. Will they pay enough for it that you can make money and for how long? (Profitability and sustainability of the business)

Do you want the four questions above elaborated on?
The best way to start a business is to start small and then gain momentum for growth as more information on the market is collected. Remember the bigger you want to start, the more resources required and this translates directly into more investments. Some entrepreneurs may have access to such huge investments other may not, thus to avoid a risk of huge investments while the market and profitability are yet to be determined is the best first step to getting your business on track.
When an entrepreneur is thinking about developing a product, the product should be developed for a target market. So it is very important to think about who is or will be the target market of your product (s) or service (s) before you actually make any further investment decisions. Existence of a target market for your products is the lifeline of your business.
Entrepreneurs need to understand that they are not producing product (s) or service (s) for the sake of just producing. They must understand that any product or services produced must be solving a specific problem to the person consuming it. This means that there must be a need for that product in the target market; thus the consumption of your product or service must be providing some benefits to the consumer. The consumer will only enjoy its consumption, if specific needs are met.
Finally, the very last question that the entrepreneur needs to get firm answers about is the purchasing power of the identified target market, therefore enabling the market to afford the product at a price higher than the production cost of the product or service. If the entrepreneur will be able to sell his or her product profitably, then the entrepreneur will also need to know for how long these sales can last. If the market is ready to purchase the product or service for a long period of time, the better for the company. If the market is seasonal, the entrepreneur needs to know it. Under all the cases, the entrepreneur needs to understand the buying behaviour and patterns exacted by the target market.

?????? Consult a professional to help you if some issues are not crystal clear to you
 

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