Why an entrepreneur needs to carry out research before starting up a new business
There are many steps needed for setting up a business. Researching the business idea and/or the need for a product is one of the first steps that needs to be carried out.
Why do research?
The entrepreneur needs to find out what the competition is, as they will need to decide how they are going to overcome any competition.
The entrepreneur will need to find out if there is a demand for their product/service as the business could turn out to be a failure if there is no interest in a particular product or service.
The entrepreneur will need to find out what price their customers are prepared to pay for their product/service so that they will be able to charge the customer competitive prices so the business can gain market share.
The entrepreneur will need to find out information about starting up a business, e.g. grants available, funding options for the business, providing the product/service, marketing and promoting the product/service and placing the product to help them get the business off to a good start.they will need to find out if there is a demand for their product/service as the business could turn out to be a failure.