WAYS TO EVALUATE A MARKET

You have plans to start a new business by offering a new product into a new market. At this point you are not sure if you will get customers for your product. To enable you study a market and make a decision it is paramount to check the following factors:

  • The market size: How many people are actively buying products like what you are offering.
  • Cost of customer acquisition: How much it will cost you to acquire a new customer and generate sale.
  • Uniqueness of your offer: How is your product different from your competitors in the same market and how easy it is your competitors to replicate you.
  • Urgency: ¬†How urgently do people want what you are offering
  • Pricing potential: Find out the highest price a typical purchaser would be willing to spend for the product or service.
  • Upfront Investments: How much will you have to invest before you ready to make that first sale
  • Speed to the market: How quickly can you produce your offer and deliver to the customer.
  • Evergreen Potential: Once you have provided the initial offer, how much additional work will you have to put into it in order to continue selling your products?
  • Up sell ¬†Potential: Find out if there are related secondary offers you could also present to purchasing customers.

 

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