Homepreneur Mistake: Failure to Conduct Market Research
Of course, it is an undeniable advantage to be able to have an idea and then using little or no capital, you can possibly serve your first customer right from your kitchen or garage.
The danger of doing business this way though is that you are never really sure if that first customer was a lucky break, or if there are more people who would just as readily hand over some cash for your product or service.
This is a huge risk to take if you are going to sink money into stock or other support services for your home business. There is literally no evidence to support your hunch that you will have clients in the future.
This is where market research comes in. Market research asks and answers the following questions;
- How many people will buy my product or service?
- How much and how often are they likely to buy?
- How or where are they likely to look for it?
These questions provide a foundation for some important considerations in every home business.