The Importance of Business Model in Entrepreneurship
A Business Model is critical for the growth and success for every business and it needs to be created by entrepreneurs or startups that are planning to start a new business or expand an existing one.
Often undermined, a business model is essential for the success of any venture and requires careful planning and research to understand the market and consumer dynamics. A major advantage of business modelling is that it supports in realistic evaluation of any business idea and its potential.
Furthermore, the potential of any business idea, product or service can be validated by conducting a market research study. The research findings of market study can equip in better understanding the market dynamic and consumer demand, eventually helping entrepreneurs in formulating a Market Entry Strategy and Business Plan.
In the aftermath of COVID-19 pandemic and global economic slowdown, it is imperative to create a well-researched business model before investing in a new business while for an existing business it is equally important to modify and re-assess market conditions.
Some of the key elements to consider before creating a business model includes but not limited to assessment of market, competition, consumers, supply chain, value proposition, resource availability (human, financial and technical). A market research company can be hired to prepare a comprehensive market and financial feasibility study inclusive of business modeling and plan development.
Research Konnection is one of the leading market research companies in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Development. Feel free to reach out to us on firstname.lastname@example.org…October 22, 2020
Importance of Conducting a Feasibility Study
A feasibility study is conducted in order to examine if the proposed business idea or venture can be applied practically in a highly volatile and unpredictable market. With almost all the industries seeing a radical change due to the COVID-19, the need to conduct a feasibility study before setting up a business has increased. It provides a head start for the business and streamlines it, saving time and money. The key function of a feasibility study is to assess and evaluate whether it is financially feasible to invest in a business / venture etc.
There are several reasons why a feasibility study is conducted.
Conducting a feasibility study helps in determining if the proposed business / venture can sustain itself for a long term and endure different kinds of risks (economic, financial, market etc.) that may incur. It can help identify the changing consumer requirements in a post-pandemic situation and provide insights on the additional services to be provided to satisfy the consumer needs. Feasibility study also helps in identifying business opportunities and/or potential threats that can hence enable business owners, investors and companies make informed decisions.
A feasibility study (market research) is usually conducted when business owners, investors and companies intend to establish or expand new business / venture in either an existing or new market.
There are several key components of a Feasibility Study which are often combined with a Business and Financial Plan.
- Business / Venture Overview
- Economic Overview (Assess socio-economic conditions and GDP growth rate etc)
- Market Overview (Assess industry size, trends, growth and potential)
- Impact of COVID-19 on the Industry
- Post COVID-19 Situation
- Competition Overview (Evaluates major competitors, market share and positioning)
- Consumer Overview (Assess needs and demands of consumers)
- Business Model Overview (Location / Licensing / SWOT / PORTER Analysis)
- Operations Overview (Management Structure / Controls / Production / Supply Chain)
- Marketing Overview (Market Segmentation / Target Audience Profiling / Marketing Plan)
- Investment Overview (Cost & Revenue Projections / Profitability / Return on Investment)
- Opportunities & Risks
Research Konnection is a market research company in Dubai that assists local and international companies to setup or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Developments. Feel free to reach out to us on email@example.com…October 15, 2020
Why Market Research Matters
COVID-19 has impacted almost all the sectors and has made the market highly volatile and uncertain. The unpredictable conditions have further increased the need for conducting market research to be highly critical for the long-term success of any business. Organisations that fail to conduct market research tend to drown. Though some organizations conduct internal research, they tend to lose sight of the consumer market research that is required for the growth of their business.
There are several reasons why market research is considered to be of top priority for businesses in the post Covid-19 scenario.
Changing Needs of the Consumers
The consumers needs are changing at a rapid pace and are adapting themselves to the post pandemic market. Organizations are required to understand the changing social / economic dynamics and incorporate significant changes in their products / services to retain their customers and stay in business.
Market research can help the organizations identify the changing dynamics and provide strategies that will help prioritize consumer needs.
Prioritizing Consumers as a core to Business
Businesses are greatly influenced by the agendas, brand priorities and internal politics. It is necessary to understand that customers are much more important and they must be placed before anyone else.
Market research provides an opportunity to understand the expectations and demands of the customers. It also helps in continuously monitoring our progress in meeting these demands.
Focusing on Consumer Needs
Businesses today have a tough job multitasking, often playing many roles within their organisation. With the help of a market research exercise, organisations can identify what is most important to their customers and also help in prioritizing and maximizing time and efforts effectively.
Identifying lucrative Growth Opportunities
Organizations that specialize in conducting market research often tend to identify opportunities and prioritize them based on the highest revenue potential. It provides clear insights on strategies and plans that should be adapted and are well suited for business growth.
Keeping up with Current and Future Trends
Organisations that conduct market research have an advantage over their competition, as they are able to better adapt to current market conditions and changing consumer trends. The insights on consumers can be obtained by regularly conducting market research, also helping organisations to devise and/or modify short and long-term business strategies.
Market research provides insights on several dimensions such as market (growth & trends), products / services, consumers and competition. The market research also allows organizations to understand potential opportunities and risks and take actions subsequently to minimize and mitigate risks.
Research Konnection is one of the leading market research companies in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Development. Feel free to reach out to us on firstname.lastname@example.org…October 13, 2020
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