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Proper Research Is the Key to a Successful Business!

Being a business owner requires a great amount of skills and market knowledge. Entrepreneurship is not as simple as most people think it is. You need to have an eye for the upcoming trends and the shifts in your industry. This is all important to foresee what the future could be and then make a realistic business plan out of it.

Whether you are running a business in Grapevine, or looking for a business opportunity, in depth research is what can make the difference. The last thing you as a business person would want to do is ignore the aspect of adequate research and five nose down into the industry.

The reason why it is worth a mention because more often than not, it is this very research—improper research—that leads a business to its downfall. The statistics tend to back this up. According to statistics, only 4% of the businesses go on to enjoy a decade in the business. In other words, 96% of the businesses fail within the first ten years. Angela Duckworth—a professor at the University of Pennsylvania—wrote in her infamous book ‘Grit’ that more than a third of the total business that set out to sail do not have the potential to last ten years even.

When we talk about the potential, we don’t just single out one or two factors that lead a business to its downfall. Instead, we point towards the single factor—improper research—that leads to most of the wrong decisions. This leads us to the importance if proper research for a successful business. This becomes of even more importance when you are looking forward to buy a business. In order to shed light upon the importance of research before you either start or purchase a business, we have jot down the following points.

Determining the Potential

Let’s say you have decided to buy a business or build one from scratch, you will have an idea, a vision of what you want to do, where you want to go. It is difficult to accept but as Nancy A. Shenker—the President of ONswitch LLC—states, a business idea in its preliminary stages lack objectivity. This is where market research comes in.

A proper market research adds objectivity to your business idea, which further goes on to make it more realistic. This helps you analyze the different areas of business in depth allowing you to understand the bigger picture in a far better manner. In other words, proper market research lets you know the true potential of your idea, especially if you are to purchase a business in places like Grapevine or Keller.

Use of Right Information

There are various different types of research methods that you can use. No matter what type of information you are looking for before you buy a business, you are bound to find it. However, that is not the right way to go about it. In order to make sure that you end up with the information that is actually valuable and provides a good business opportunity, it is important to understand its relevancy. As mentioned, every type of information can be dug up from the primary and secondary sources, but not all information will be relevant.

Know what is valuable and what you want to find out. This will allow you to target only the research that provides information that can help you make the most of your business opportunity. A great way to go about this is to hire experts like Kirksey Business Brokers who are experts of the industry and can guide you in making the best, most productive moves.

Due Diligence

To purchase a business, you have to conduct due diligence. There is surely obvious. But the part where the problem actually arises is again the same—people get off-track during research. The reason why we mentioned due diligence to shed light upon the importance of proper research is because a lot of business personnel tend to make costly mistakes while on it.

When you are evaluating the business you plan on buying, it is not only its financial standing in the market that you should look into. You must also dig the aspects of that business that can assist you in the longer-run. Based on this in-depth research, you can design your future business plans much more accurately.

Common Mistakes

When you plan to purchase a business, proper research is what makes the difference. However, business men and women tend to make mistakes during the research period. Following are a few of the most common mistakes business personnel make that prove costly in the long-run.

Relying on a single source

One of the worst mistakes that most businessmen make while conducting a research is to rely on a single source for information. Always remember that a single source only identifies information from a certain angle. And to make the most of a business opportunity, you have to look into a situation or gather information from various angles to get hold of a 360-degree view of the situation.

Using Secondary Research

In order to save time, a lot of businesses are found to only gather information from secondary sources without putting in much effort in the primary ones. This, again, does not offer the full picture. You have to dig deeper into areas where other businesses haven’t reached and propose a different angle for your business. In addition to the narrow view, only relying on secondary information may lead you to researches that are outdated. And making you business plans over outdated information can prove very costly.

 

Are you unsure of the areas you need to focus on during your research? Then simply take help from Kirksey Business Brokers. We are professionals who help in the evaluation before you buy a business. We further help in enhancing a business’s value using the most effective, and the most contemporary practices. To get in touch with us, just dial 817-637-1508.

 

Sources

https://www.entrepreneur.com/article/70518

https://smallbiztrends.com/2016/01/entrepreneurs-who-failed.html

https://www.entrepreneur.com/article/241080

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