Evaluate your business idea part 1

By admin
27 September 2013

Hylton Long of Khula Enterprise gives advice on how Maphuka and other entrepreneurs can better their businesses.‘Maphuka makes just enough money to cover the costs of her business and she makes a bit extra on which she lives. To improve her business, she must first find out whether her business is a good idea.’

Here is a basic method to evaluate your business idea.

Step 1

Know your market. This means finding out who will buy your product. In order to grow, Maphuka cannot only sell door to door; she needs to identify more potential buyers, for example, shops, restaurants and schools.

She can do informal market research by taking her product to potential customers and asking them if they would be interested in buying the goods. And if so, how many aprons would they buy a month. Be realistic when deciding on your market and be sure that they can become your customers.

Step 2

Make sure you know who your competition is. How do their products differ from yours and what prices are they asking?