Once the idea is found, it must be validated (as early as possible), which means ensuring that it can be transformed into a viable project or, let’s say, a viable business by trying to understand it from all aspects.

Some essential questions to validate your business idea are:

• What products or services do you want to sell?
• Who do you want to sell them to?
• Do you already know potential customers?
• Is the project feasible?
• What are my needs in terms of equipment, personnel, and premises?
• Are there specific constraints related to this idea and its implementation?
• Do you know anyone already engaged in this activity?

This preliminary study is very important because it is from here that the decision to continue the process is made.

This idea should be tested with trusted people who are well-acquainted with the national economic environment and the sector concerned. It should be noted that a good idea must meet a solvable need and be financially acceptable. The promoter must remain very critical and act responsibly toward this idea.

Once you have a good grasp of the idea, try to get to know the sector in which your business will operate, its short, medium, and long-term trends, as well as the factors that may influence it over time.

It is clear that this validation phase requires gathering a lot of information: about the product or service, potential customers, suppliers, and regulations related to the product if necessary. All this information will be useful for the essential market study.

If this step proves positive, you can then proceed with a formal feasibility study that will allow you to quantify the planned activity.

V- PROPERLY DEVELOPING YOUR PROJECT

The success of a new business starts with project development. A well-prepared project plan should enhance the feasibility of the project. It starts with a good financial study that will enable you to make financial projections. In the following lines, we will see how you can measure the success of your idea through a good market study, as a good idea will only lead to a solid and sustainable business if a solvable and accessible market exists. Properly developing your project will later allow you to present a good business plan.

VI- MARKET STUDY

Market Concept
The market is a place where supply and demand for a good meet.

Financial Markets

• Associates
• Lenders
• Banks

Labor Market

• Job seekers
• Workers
• Unions

Supply Markets

• Suppliers of regular consumables
• Suppliers of equipment

Downstream Market

• Clients
• Intermediaries
• Competitors

How to Understand Your Market and Refine Your Commercial Strategy?

Any idea, however simple and modest it may be, can correspond to a market if it meets a need and can be sold at a price acceptable to the consumer and profitable for the seller. The market study is what makes it possible to verify this. The market study is therefore crucial in the process of creating a business. 70% of new business failures are due to poor-quality market studies.

The main objectives of the market study are:

• Define the characteristics the product or service must have to attract customers;
• Set an acceptable selling price according to the novelty and competitive practices, determining the maximum price customers are willing to pay, known as the psychological price.

Warning: Trying to change consumer habits can be risky. Despite the quality of your products, a price that is too low or too high can result in no sales. Finally, consider your production costs;

• Choose a distribution method and the best location for your business;
• Determine your prospecting methods and sales techniques;
• Define your communication tools: How will you promote your products and business? Signage, advertising, branding, etc.

This work can be entrusted to a specialized firm, but you can do it yourself if you don’t have much funding or if it’s a small business. You can also find marketing clubs or junior enterprises in some local universities that can carry out reasonable studies as part of school projects.

This text is an excerpt from the book “SECRETS OF THOSE WHO SUCCEED IN BUSINESS PROJECTS” written by Luc André GBELISSA.

We invite you to read the following article “Bertin Nahum, A Franco-Beninese Ranked 4th Most Revolutionary Entrepreneur in the World”.