For many ambitious people, owning their own company is a dream situation; to do something they’re passionate about, run their own schedules, and build a business that could provide endless opportunities.
But starting a business is a big step. It can take time to do the necessary research that can help make a company a success, from understanding the industry and the market to competitors.
If you’re looking to start your own business or you have a new startup, this article will introduce you to steps that will identify the viability of your venture and help make your business a success.
The basic principles of business are based on supply and demand - providing a product or service that someone would be willing to pay for. Your business should be defined by this demand for your product or service and by meeting the needs of your consumers, based on recognizable gaps in the market. This is the best way to identify if your company will be sustainable.
Understanding this basic principle will help to define your ‘why’ purpose and your intent. This can then guide you on future decisions.
Understanding the competition is a crucial business activity for any entrepreneur and an important step in starting a business.
Competitive research involves identifying your competitors and evaluating the strengths and weaknesses of their products and/or services. Conducting such an analysis will support your own business positioning, by identifying improvements in your offering and help avoid possible obstacles in the future.
To further understand the competition, it's important to understand their customers. Take note of consumer feedback of your competitors, via public social media comments, business ratings, and reviews on Google for example. Analyzing this feedback can provide invaluable insights to your potential target audience, which will help you understand your customers better, know what’s important to them, and allows you to build a framework for possible obstacles that may arise.
The Feasibility Study is research that should be carried out by all new prospective business owners, and it’s done by analyzing and evaluating the business and whether it’s feasible in terms of cost, time, and resources.
The study is divided into 3 categories:
In this step, you can use the Saudi Feasibility Platform which provides the opportunity to meet feasibility study and project experts as well as search for potential investors for your business.
Conducting a SWOT (strengths, weaknesses, opportunities, and threats) analysis is a way of defining your business’s competitive position in the market and developing the most appropriate strategy moving forward. This form of situational analysis assesses internal and external factors, as well as current and future potential, and helps entrepreneurs create a solid business strategy to maximize the company’s growth.
The definition of each pillar is as follows:
Conducting this research will provide a comprehensive view of where a business stands in the competitive market. As a startup, this business analysis can serve as a stepping stone to move forward, to help reduce risk and improve business performance.
Competitor research can show you gaps in the market and business improvements, but researching leaders and pioneers in the field can benefit you a lot on a personal level, from inspiration, and support to perspective.
Social media platforms, such as Linkedin, provide access to a breadth of information where you can find pioneers and leaders in a chosen field who regularly share industry insights, to support future business and personal development.
You can also join Misk’s Entrepreneurship Space which gives access to the latest insights and activities in the entrepreneurship field, in addition to exclusive articles and reports on the market.
Look to attend workshops and/or courses aimed at startups or that are industry-specific. These give you the opportunity to meet like-minded people and develop your skills. You may be a savant entrepreneur, but lack basic accounting or marketing skills to help you grow your startup. Upskilling yourself is always worthwhile.
This can also act as an alternative way to research and understand the competitive market by speaking to different people and developing knowledge of business and the industry.
Misk Hub provides a number of helpful entrepreneurship Masterclasses from the Misk Start-Up School MasterClasses or SPARK in partnership with NEOM and Monsha’at, which is a six-week program designed to support aspiring entrepreneurs. Another option is the Irada program from the National Entrepreneurship Institute, which empowers and supports citizens to create their own businesses.
Start small, for example, create a small-scale sample of your product or service with just enough features that customers can trial and test. This can be a basic website, an app, or even a sample product itself. This is a great way to get general feedback and invaluable insights, without the high outgoing costs.
These steps may differ from one venture to another depending on the nature of the business. But these steps are designed for you to research, analyze and understand the market of your business so obstacles can be overcome, and growth and future success can be achieved.
