Neither to start new business nor entering new market is easy but that's what all business has to do. Either someone is thinking to start new business or a company is planning to enter new market, there are 7 important things to know and analyze before stepping in.
Then, let's see what are they.
(1) Know Oneself: It is always good to do SWOT (Strenght, Weakness, Opportunity and Threat) analysis before starting any business.
(2) Know Current Market Situation: It could be company surveys (primary data) or published/research information (secondary data) to know different industry and current market position of different product types.
(3) Know Risk For Future Market: There is no business without risk. Even someone get free voucher or free ticket to do something, there is a risk if he/she may lose or happen something before free voucher/ticket is used. Only low and high risk is different. So, it's much important to have risk/backup plan and predict what could risk for future market. Risk comes mostly from external sources such as economic, political and environment changes.
(4) Sales Forecast For New Market: - Estimate future sales and market share based on the competitive advantages that exist before doing something new in the market.
(5) Costs Of New Market: - Forecast at least 3 years in advance for what could be the variable costs (such as salary, taxes, raw material, other operational cost) in the plan.
(6) Estimate Return On Investment/Profit: - Forecast income and profit for Return On Investment by doing such as Break Even Point in Sales and Production.
(7) Take a clear image of above 6 points to know the best possibility to enter new market. If it is not clear yet, better start from No.(1) again.
Then, let's see what are they.
(1) Know Oneself: It is always good to do SWOT (Strenght, Weakness, Opportunity and Threat) analysis before starting any business.
(2) Know Current Market Situation: It could be company surveys (primary data) or published/research information (secondary data) to know different industry and current market position of different product types.
(3) Know Risk For Future Market: There is no business without risk. Even someone get free voucher or free ticket to do something, there is a risk if he/she may lose or happen something before free voucher/ticket is used. Only low and high risk is different. So, it's much important to have risk/backup plan and predict what could risk for future market. Risk comes mostly from external sources such as economic, political and environment changes.
(4) Sales Forecast For New Market: - Estimate future sales and market share based on the competitive advantages that exist before doing something new in the market.
(5) Costs Of New Market: - Forecast at least 3 years in advance for what could be the variable costs (such as salary, taxes, raw material, other operational cost) in the plan.
(6) Estimate Return On Investment/Profit: - Forecast income and profit for Return On Investment by doing such as Break Even Point in Sales and Production.
(7) Take a clear image of above 6 points to know the best possibility to enter new market. If it is not clear yet, better start from No.(1) again.
2 comments:
ok, it is too general and common. :)
Thank you for stopping by!
Ya.. Will specific more in later post :) and this time is to provide general idea first.. :) :)
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