Skip to main content

Ten Ways To Evaluate A Market (Personal MBA Summary #1)

It's important to evaluate the market before diving into one. 
        So, in this one we are going to discuss about ten ways how we can evaluate a market in industry, this also for small business.

Quote -

   So often people are working hard at a wrong thing, working on the right thing is probably more important than working hard.
                                           ~ Catrina Fake (American Entrepreneur)

 Image Credit: -gimme-shelter.com

If you are thinking of starting of new business or expanding an existing business into new market, it pays to do some research that is given as bellow.

1) Urgency -

         How badly do people want or need this right now? Renting an old movie is low urgency.

2) Market Size -
          
          How many people are purchasing things like that.

3) Pricing Potential -

          What is the highest price a typical purchaser would be willing to spend on solution.

4) Cost Of Customer Acquisition -

          How easy is to acquire a new customer? On average, how much it cost to generate a sale, in both, money and effort.

5) Cost Of Value Delivery -
       
          How much will it cost to create and deliver the value offered, in both, money and effort.

6) Uniqueness Of Offer -

          How unique is your offer versus competing offering in market, and how easy is it for potential competitors to copy you?

7) Speed To Market -

          How soon can you create something to sell.

8) Up Front Investment -

          How much will you have to invest before you are ready to sell?

9) Up sell Potential -

          Are there related secondary offers that you could also present to purchasing customer? For example -
- Customer who is purchasing Razers need Shaving Cream and also Extra Blades.

10) Evergreen Potential -
 
          Once the initial offer has been created, how much additional work will you have to put in order to continue selling? For example -
- A book is produced once then sold over and over again as is.


So, these are the most important parameters you must check before entering in the market. These written things don't assure to that your business is surely going to succeed but it lowers the risk of failing of your business.

This (The personal MBA) is the great book if you want to know about business, so I am recommending you this book to read.
Here the link from Amazon you can buy it from here: -
 
    -  https://amzn.to/3XxUhDB

---------------------------------------------------------------------------------------

For more short blogs here, I am 

Twitter: - https://twitter.com/Axit682
LinkedIn: - (1) Akshit Thakur | LinkedIn

          If you read it till end do comment about how it is and also if you like this one, then share this with your mates.



Comments

Post a Comment

Popular posts from this blog

Health Insurance

 As we discussed previously that there are two types of insurance         - Life Insurance         - Health Insurance We have already discussed about life insurance in details in first blog, you can search it by searching insurance and you will find it there, so here we are going to discuss about health insurance. image credit: -https://learn.insureguru.com Health Insurance: - As life insurance is related to death thus health insurance is insurance that is quite useful that include the expenses of your hospitalization. for example: -   - suppose someone got serios injury through accident and he does not have any health insurance, now he/ his family has to pay all the hospital bills all by themselves.   Now if the person has that health insurance, then there will be no hassle like paying hospital's operations cost, room cost etc. that family has to pay, thus in this situation health insurance plays an important role. NOW this is about how health insurance works and why it is importa
Post a Comment
Read more

Finance (The Personal MBA Summary #3)

 In this one we are going to discuss about some finance things which is quite important in businesses as well as in personal life too.          Thus, this blog must read if you have some interest in personal finance or in analyzing businesses.  So, let's dive straight into this ✌ image credit: - thebluediamondgallery.com 1) Profit Margin: - Quote: -         I never lost money by turning a profit.                                               ~Bernard Baruch   Profit margin is the percentage and is defined as expressed as bellow. Revenue-Cost/ Revenue * 100 = Profit margin   · The higher the profit margin higher/stronger the business.                                       The higher the price then higher will the revenue and if higher the price,  then cost will be low, thus if cost is low then % profit margin will be higher, which is quite good for a business . 2) Value Capture: - Quote: -         You can get anything you want in this life if you help enough other people get what
Post a Comment
Read more

Some Investment Principle You Must Remember (Poor Charlie's Almanack Summary)

 In this one we are going to discuss about some investing principle of one of the OG investor Charlie Munger. First, let's know a bit about him: - Charlie Munger is a billionaire and also a partner of another OG investor Warren Buffett. Warren Buffett also claims it that he also had learn a lot from Charlie Munger. Charlie Munger has a habit to read around 500 pages daily. He has discussed some of his investing principle in book by the name "Poor Charlie's Almanack". So now you are going to get summary of it. Investing Principle: - Image Credit: - booksrun.com Quote: -         All I want to know is where I am going to die, So I'll never go there.         ~Charlie Munger  Here are some of his investing principles: -     · If you already know that there is higher chance of making loss in stock market so why go for higher profit? So, one must invest his/her money by calculating the loss the phenomenon also known as risk management.         - Its means that if you are
Post a Comment
Read more