Market Research: When Starting your School Based Enterprise
Market Research
When Starting your School Based Enterprise
Before you start a business you need to ask yourself, is my business needed or wanted? It is incredibly important to not assume that it is and do research before dedicating yourself to a business that will not succeed. There are two steps to take before diving in; complete market research and a competitive analysis.
Market Research
According to the Small Business Administration, “Market research helps you find customers for your business. Competitive analysis helps you make your business unique. Combine them to find a competitive advantage for your small business.”
Demand: Is there a desire for your product or service?
Market size: How many people would be interested in your offering?
Economic indicators: What is the income range and employment rate?
Location: Where do your customers live and where can your business reach?
Market saturation: How many similar options are already available to consumers?
Pricing: What do potential customers pay for these alternatives?
Spirit Box Connection
If you are looking to start a Spirit Box business in your school go through each of the following questions above. Also ask yourself, are there currently other vending machines in your school? If there are, consider competing for the contract to be the sole vending provider. Consider the best place to put your machine. A few great places that other schools have found success are the gymnasium or near the cafeteria. The best place to put your vending machine is in the highest traffic area.
Competitive Analysis
A competitive analysis helps you figure out how to stand out to your customer so they want to purchase from you instead of your competitors.
Market share
Strengths and weaknesses
Your window of opportunity to enter the market
The importance of your target market to your competitors
Any barriers that may hinder you as you enter the market
Indirect or secondary competitors who may impact your success
A great way to identify the points listed above is to complete a SWOT Analysis for your prospective business to help you identify your strengths, weaknesses, opportunities, and the threats to your company.
Spirit Box Connection
Chances are, you are not the only business wanting to sell your products out of a vending machine in your school. Vending machine companies make a ton of money by housing their machines in schools. How do you plan to compete with that? What type of products make your machine unique? Maybe your customers prefer a nicer machine that is easier to use with cashless transactions. Maybe your school would rather support your vending machine rather than a random company. Identify how your business is stronger and more unique than the other company.
Put it into action
Do not skip the research phase, this is crucial in understanding if this business is a good fit for your community. Once you have completed your research, it’s time to start writing your business plan. The research you have done, will help you tremendously when writing your plan. Now go and do!