We looked at the who. We looked at the why. Now let’s talk about the where.
As a business owner, you NEED to know your area. Be familiar with how its laid out, what’s going on, what the strengths and weaknesses are of your market. The better you know it, the better your chance for success.
Doing a little market research
Larger companies will spend huge amounts of money studying a market to see if it can be successful. They’ll do focus groups and analysis and all of this to determine things like what kind of money can they expect to make, what kind of prices they pay? I knew a guy who realized how much money the big tobacco companies spent on market studies, and so whenever they raised cigarette prices he knew the market could bear a price increase from his business as well. Knowing the landscape of where you are will help you tremendously. Sometimes it will help you succeed, sometimes it will help you know when it’s not a good time to be in the market.