Anyone planning to start a new business must have an idea of what its goals and objectives are and how it will achieve them.  

Most small business start-ups have skills and experience in their particular field, and they believe they can sell these skills in the marketplace without having to work for an employer.

However, running a business requires skills that many of us may not have had to use before, such as planning, marketing, financial skills etc. For this reason, a business plan is highly recommended for any new business.

The business plan will outline the goals and objectives of the business as well as the strategies that will be used to achieve them. Two of the most important questions the business plan attempts to answer are: is there a demand for my product or service, and do I have the finances necessary to get started?  

Obviously, if the answer to the first question is no, then the second question becomes irrelevant. Therefore, one of the first and most important parts of the planning process is to determine who your customers would be. This is called primary market research, and should involve direct contact with potential customers and/or people who know your potential customers.

Many people will draft a questionnaire to gather information such as how often a person (or business) purchases a product or service, how much they are willing to spend on it, whether or not they are satisfied with what is currently offered in the area, what they would like to see that is not currently offered, and any other questions which will help the entrepreneur decide if there really are enough people to support the business, and to get an idea of who these people are.  

From this, one can build a profile of the “typical customer,” which would include information such as age, gender, income bracket, permanent or seasonal resident, urban or rural, etc. This hypothetical group is called the “target market.” Identifying this market is key to the success of any business venture.

Once a target market has been identified, it is important to get an idea how big (or small) that market is. Local municipal websites and the Muskoka Enterprise Centre’s website are excellent sources of this information, what we call secondary market research.

Here we are looking for statistical information on the population of the area, as well as any reports that have been prepared by local governments on the economic outlook for the area. Some businesses can survive in a small market if there isn’t much competition, or if they don’t need high volume sales, whereas others, such as a fast food outlet, would have a better chance of success in a larger market.

In either case, the comfort of knowing you have done your research will give you the confidence to go ahead with your business idea.

The Muskoka Enterprise Centre offers free and confidential consultations, whether it’s to help you get started on the planning process, or to review your plan before you present it to a bank or other lender. We also offer workshops and seminars on a variety of business topics. Watch for our spring series of seminars, coming soon.  

For more information or a free consultation, call us at 646-9021, or visit www.muskokaenterprisecentre.com.