Reading time – 2 minutes
Category – Business
If you have caught the bug to be enterpreneur; you must start understanding business world’s inner workings.
First of all you should see the market in which you want to enter.
Before you start working on prototype, it is better to analyse product on strict criteria.
Here are few things that you should look out for.
1. Investment –
How much capital will you need. It depends on business. If you do electricity repair few instruments needed, but to build a factory much larger dough is needed.
2. Market size –
how many people use your product.
Everybody wears clothes but very few people purchase personal Jets.
3. Price of item –
How much can you charge for your product.
A pen is very cheap and a smartphone is costly.
4. Cost of delivery –
How much will it cost to deliver the product or service.
Sending software is easy, while delivering food needs store and employees.
5. Cost of customer acquisition –
Amount of money you need to spend on finding customers.
A hospital on busy road gets automatic customers. But to sell a new FMCG product you need tv ads.
6. Uniqueness –
How unique is your product or service.
A pizza restaurant is common, while a private rocket ( Spacex) is rare.
7. Time in starting –
How much time it will take to serve your first customer.
While coaching online is fast, but starting a hospital takes time.
8. Lifetime of product or service –
If you teach you have to teach everytime to get paid, while an app once famous can generate disproportionate revenues.
So after analysing these criteria further planning becomes easier.
Enter a niche which has demand and try to acquire it’s major stack.