You can never foretell the future, but you can make educated guesses about what could happen. You may have tried many methods to discover which products are now popular, but how do you go about analyzing and establishing whether the potential to establish a lucrative business with those products exists?
If a single person searched for a product last year, and ten individuals looked for it this year, the trend keeps rising. Is the market, however, still worth entering as a business?
You must think like your customers and understand what motivates them to buy. In other words, you must determine whether or not there is a large demand for your items. Entrepreneurial risk-taking gets frequently praised. Building a business needs a leap of faith. However, it is equally vital to recognize that the success tales we hear have underlying survivorship biases.
Once you have a fresh product concept, it is tempting to start a business straight away. But don’t get too carried away. Consider the following questions as you step back:
- Is this a viable market?
- Is this a feasible product?
How do you get at the above? You’ll need to do product research as well as market viable research.
This program looks for a product concept and displays the search volume for that term over the last five years. Go to Google Trends and type in the name of the product you want to sell. It will serve as an indicator of whether or not they need for your product will surge or remain flat. For example, before Halloween, the demand for candies remains flat as Halloween approaches, the demand for candies and custom candy packaging goes over the roof.
Perform a SWOT analysis:
SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a prominent strategic analysis framework that could aid you in effectively evaluating your organization, assessing threats, and seizing on prospects.
- Determine your company’s strengths. These may include a strong supply chain, a lucrative product, better pricing, excellent customer service, and efficient SEO, Adwords, or social media strategy, and so on. Determine where you outperform your competition.
- Examine your flaws. On the other hand, they may include a shaky supply chain, an unsustainable product, bad customer service, a lack of contacts with influencers in your field, and so on. Where do you lag behind your competitors?
- Recognize business possibilities. Would it help your company to locate better suppliers on platforms like Alibaba or eBay? Maybe you’d be able to do better with packaging by using firms like H5 packaging? Alternatively, how about selling private labels? Look for strategies to enhance your profitability, quality of products, and product pricing. Don’t be scared to become inventive in this scenario.
- Make a list of the dangers to your company. What upcoming technologies could have an impact on your market? Which rivals or are you more concerned about? Is your market share in danger from new competitors? You must remain vigilant.
When it comes to SWOT analysis, the most important thing is to be brutally honest with yourself. Your business is not without flaws. It has both advantages and disadvantages. It is also prone to a variety of risks. That’s OK. What is important is that you appropriately analyze the scenario and adapt your plan as needed.
Analyze the target audience:
Don’t settle for a product idea until you’ve thoroughly researched your targeted audience. Analyze them specifically by:
Demographics: information about an accurate person (e.g. age, gender, ethnicity, occupation, job title, etc.).
Psychographics: behavioral characteristics such as values, beliefs, wants, and so on.
Create a collection of buyer personas based on this data – fictitious people who reflect a common member of your target demographic. After you’ve determined who your ideal consumers are, you’ll need to determine if they make sense as clients.
Here are some things to keep in mind:
- Attitude toward the problem that your product is intended to answer. Is the issue troublesome enough to justify spending money on a new solution?
- Monetary situation: Are they willing to spend the same amount as your product to solve the problem?
- Chronology of purchases Do they have a history of purchasing comparable products?
The ideal buyer is aware of a problem, can pay for the remedy you suggest, and has used comparable items mostly in the past.