Written by: Dr. Ian Marshall
Probably the most important part of the process of completing a business plan is gathering the information pertinent to your business, its markets, its operations and its finance. Preparing a business plan it not an easy task and thus it is always a good idea to break it down into easy to manage components. These components can then be accurately researched prior to compiling the business plan.
It is often believed that the research a new company needs to undertake is solely about the market they are going to serve – the customer. However the research needs encompass all of the components that make up the business plan. The business plan will address your business as a whole and therefore your research needs to encompass all of the aspect of your business. Each of the individual parts are researched and brought together into the final business plan document. You will use this researched information to build the business plan and strategically define your approach to bring your product or service to market.
To demonstrate the important role research plays in establishing the viability of your idea and building a business, one could liken it constructing a building. The importance of the foundations for that building is no different to the foundations required for your business. If the foundations of the building are weak then the building is likely to topple and fall. So too will your business if your research is not well done, well researched and well documented, interpreted and strategic actions implemented.
What we have to establish is whether or not our “good idea” is in fact a “good business idea”. Exporting sand to the Sahara Desert is an idea but is it a viable business opportunity. No matter what your idea you will need to complete market research to evaluate if that business idea can become a viable, self-sustaining business. A “business” opportunity gives you a business that will be self-sustainable, profitable and will have longevity. The better prepared you are in your understanding of what lies out in the real world of business the less surprises you will encounter and the easier the hurdles will be to overcome.
No business operates in isolation. So each business will interact with the environments that surround it. These environments have influence over the business and the business has influence over its surrounding environment. Those things that will influence your business in either a positive or negative way need to be understood. How you interpret them and what part they will play in influencing the business and to what degree will depend on how you utilize the information and what strategies you will build and implement for your business. These strategies are built into your business plan and form the strategies for success.