More often than not, when an entrepreneur starts a business with no plan of action, it is almost certain that the business will fail. Planning plays an essential role in the process of business management as it allows for the formulation of strategies that would enable the business to move ahead, as well as plans that will be used as back up insteadthings fail, or the first plan does not work out. To avoid failure, one thing that is of utmost importance for any business is market research (Murphy, 2018). Market research is considered integral for small and large business alike. It is also recommended for start-upcompanies, and experienced companies alike, as it plays a vital role in planning and prioritizing for a business. In this regard, this will be a rationale that will aim to explain why the proposed business plan is valid. This essay will attempt to expound on what makes the proposed business unique as well as the reason why the market is ready for the proposed business.
For any person looking to own a business and run it successfully, he or she must be willing to go the extra mile to gain a competitive advantage over the rivals, increase market share as a way to ensure that the business grows and thrives. Developing a business is often tedious process; one that requires much patience and discipline(Murphy, 2018). It also demands much out of the owner, where he or she is expected to have a proper plan for every single activity that the company or business intends to participate in or conduct. This only goes to add to the fact that businessesare hard work. For a small business, it is often important to prioritize and plan, to have an idea of what should be expected, and what is already underway. The finances of a small company are especially of great importance, and therefore, must be tightly controlled and well budgeted for. Sourcing for skills and employees sometimes proves difficult for SME’s because of financial constraints, among other factors. It is this opportunity found in small businesses that this proposed company would aim to exploit.
As has been highlighted in the business plan, his business is aimed at bridging the gap between employers and freelancers to ensure small business have access to skilled labor, while the freelancer has a potential source of income if and when acompany needs it.The truth of thematter is that unemployment is continually on the rise. More people are entering the job market, while therearenot enough jobs to accommodate the number of people who are availablefor jobs. This is especially true for skilled labor, and especially university graduates. Today, being a graduate does not directly point to the fact that employment is assured. Unemployment is more rampant nowadays, where the biggest population of the unemployed is the youth. Also, the most educatedage group in society are the youth. This is a clear indicator of the fact that there is a divide between the way things work between employers andemployees. Employers can only take so many employees at a go, and it is for this reason that there is still a large population of people with the necessary skills but lack access to placeswhere they can put these skills to good use.
The market that this business aims to attract and retain is made up of unemployed but skilled youth, and small to medium enterprises in the country. They are the focus market because, it is here that the biggest gap has been found, where small business cannot afford permanentemployees and where these small businessesdo not have the means to accessfreelance employees(Barringer, Ireland, & Duane, 2016). In the same way, the youth are skilled and are ready to offertheir services. However, they have no employer to make use of their skills.
There is a myriad of things that can make a business appear unique. Uniqueness is all about a factor about a company that causes it to be more attractive, preferable, widely recognized, and hard to competeagainst. Uniqueness plays an important role in any business as it acts as a point ofcompetitiveadvantage against the rivals of the company within the industry. As for this proposed business plan, what makes it unique is the fact thatit is targetinga market has a limitless amount of labor(Murphy, 2018). This is because the labor that is gotten through the businessplan is for use by small companiesand the people offering these skills are ever presentand accessible from any part of the world.This is the beauty of freelance work, where labor is not only sourced locally but can also be from an international market. Aside from the targeted market, another aspect that makes it unique is that unlike its rivals, the company will employ modern techniques of operation such as the use of the internet as a platform for conducting most if not all of the activities that the company will be handling. This means that the company’s services will only be accessible online which paintsa picture of professionalism and by extension implies that the services are of good quality(Murphy, 2018).
Importance of Market Research
As earlier stated, it is very important for anybusiness, whether established or just starting up, to employ techniquesof market research. Market research is the process of gathering information about the target market with the ai of understanding the needs and preferences of the customers. Market research,therefore, is where a company will choose topay attentionto its potential and current customers, if any, with the aim of ensuring it meets the needs of the customers(Canadabusiness.ca, 2018). Market research plays an important role in any business as it allows a company to gain necessary formation that is useful for planning and execution of business plans within or by a company. In general, the main aim of conducting market research is for a company to have extensive knowledge about its customers and the state of the market. Market research enables a business to make informed decisions and to capitalize on the 4P’s. The 4P’s stand for Product, Price, Placement, and Promotion(Canadabusiness.ca, 2018).
In that regard, there are some ways that can be used to conduct market research. Market research can either be conducted using primary sources or secondary sources(Canadabusiness.ca, 2018). Primary sources are sources of information that are straight from individualswhoare involved in the marketing process such as the customers, and stakeholders. Secondary sources are sources of information such as internetarticles, scholarly works, books, that carry information that wasalready collected by someone else.Naturally, primary sourcesarepreferred but are not always necessary(Curtis, 2008).
For this proposed business plan, the first step to researching the market is through the use of secondary sources.Secondary sources often produce a lot of information, whichcan be helpful to a company. Conducting primary research is often time-consuming and costly, and therefore, using the datacollected by others to plan can sometimes prove helpful. This will be done by analyzing books that speak about the differentkind of customers, and the ways to realize their unmet needs(Curtis, 2008). They will also highlight market trends, and this is especially true for yearly statistical reports that are released by various companies and organizations. As a way to collect primary data, the primary strategy that will be online surveys. The internet presents a useful way to reach many people at once and inquire about their preferencesabout a product or services, as well as their thoughts about a business. This will help the business plan to create a business that is well positioned and that targets the right customers(Curtis, 2008).
Importance of Competitive Analysis
As part of market research is conducting a SWOT analysis and competitive analysis. A competitive analysis plays an importantrole as it helps a company understand the size of the competition and opportunities that can be exploited. Understanding the competition can help a company realize its options when it comes to pricing, the target market, an alternative product, or even ways to gain market share by outperforming the rivals(Barringer, Ireland, & Duane, 2016).
Market research is of utmost importance to any business that is looking to grow and expand. This is especially true for small businesses where it is necessary to gauge the market, understand the customers, and understand the rivals. Marketanalysis is important as it allows a business to have well laid out plan on the direction a business will take based offofthe information gathered through research. Market research is important for businessesto make informedstrategicdecisions, and to mitigate foreseen risks(Barringer, Ireland, & Duane, 2016).
Barringer, B. R., Ireland, & Duane, R. (2016). Entrepreneurship: Successfully launching new ventures (5th ed.). Don Mills, Canada: Pearson Canada Inc.
Canadabusiness.ca. (2018, 7). Guide to Market Research and Analysis — Canada Business Network. Retrieved October 24, 2018, from https://canadabusiness.ca/business-planning/market-research-and-statistics/conducting-market-research/guide-to-market-research-and-analysis/?it=eng/page/2691/#toc-_how_to_conduct_market_research_
Curtis, K. R. (2008). Conducting Market Research Using Primary Data. Assessment and Strategy Development for Agriculture.
Murphy, D. (2018, May). 8 Ways to Differentiate Your Business. Retrieved from https://masterful-marketing.com/8-ways-to-differentiate-your-business/