Research is essential before starting your business, and a lack of adequate research is one of the reasons that businesses fail. What you learn during the research phase will form the basis of your future plans. Here are a few questions that may help you during the research process.
- Is your enterprise legal?
- What will you sell?
- Does your product or service fill a real market need?
- Identify your customers: who are they, where are they?
- What will they demand?
- Get feedback from prospective customers.
- Identify your competition.
- Assess the feasibility of your idea.
- Develop a cash flow forecast.
- How much capital will you need to start the business?
- Project income statements.
- What are the financial risks?
- Will you be able to make a profit?
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