There are many reasons why small businesses can fail, and many of these reasons have nothing to do with the skill and experience of the leader, so if you’re thinking it’s you responsible for the failure - it might not be. The reason behind the failure of the business may have a lot to do with the fact that there simply weren’t enough people to buy the products or services of a business. In layman’s terms, plenty of business owners have a great idea but don’t do the research properly and launch their business in either the wrong place or the wrong space to get success. Some business owners launch and don’t put enough effort into the strategy and simply believe that the customers will come to them.
To help other small businesses out there, Servcorp Hong Kong have created a quick guide to helping you to assess the market potential of your new business idea in Hong Kong. Take a look!
Make sure you ask the right questions
When you’re looking to establish your business in a new space you need to ask the right questions to ensure that your focus is on the right place. You need to ask yourself a few key questions including:
- Does my product or service actually provide something that fulfils a market need?
- Who are my customers? Do I know where I am going to find them?
- Why kind of competition do I have in the market place?
- Do I have a real point of difference between me and my nearest competition?
- Is my product something that is a trend or fad, and can I take advantage of the current popularity?
- Do I have space to enter the market?
- Is my product priced correctly for the market, and if not can I justify the increase in cost through value?
You can do some really easy and basic research on Google and find a great deal of information about other products on the market. Just by doing a keyword search and narrowing the choice down to a location you can see who is doing well in that area. While a Google search is by no means an exhaustive search it’s a great place to start.
Once you have an idea of who is operating in a certain area it’s much easier to start narrowing down and doing a SWOT (Strength, Weakness, Opportunity and Threat) analysis of the market and to begin to identify your unique selling point(s).
Get some feedback
When you want to know where to position yourself you need to know what the market wants in the first place. You can speculate all you like, but unless you know what the people want you might be facing disappointment sooner than later. You can either do surveys or focus interviews; or you might crowdsource your idea to see if it’s viable through support. Whatever you do - don’t turn to your friends and family for their opinion. They will only tell you it’s a good idea because you came up with it, you special snowflake! No, get the opinion of the ruthless public for some direction. Once your company is successful you can get accolades from your family.
Just do it
There comes a time after all the research is done when you will just have to take the plunge and go for it. When this time comes it will be nerve-wracking but you will need to muster your courage and just do it. Take calculated risks and be sure to put your best foot forward. In the Hong Kong business market it’s all about making a great first impression, and a virtual office is a great way to do that. Speak to the Servcorp team for advice on how to make a great impression - and the rest is up to you.