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Researching The New Idea
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The best business plans are not always the best and innovative ideas. However, they are probably the best researched ideas.

For any new business to succeed, an entrepreneur needs to ensure that he or she is building a product that is satisfying the needs of the market. The challenge is in understanding what makes "one product" right enough to satisfy the needs of large group of customers.

The best business plans rely on impeccable market research and a core understanding of the product and the need for it by customers. An entrepreneur needs to take into account the existence of a similar product already available in the market and the uniqueness of the prospective product that distinguishes it from all products already available. Finally, the entrepreneur should estimate whether the product will make money and if so how much.

In-depth market research is essential not only in formulating business plans but also for successfully earning the finances to see the business plans through. Angel Investors as well as venture capitalists expect and demand market research from any entrepreneur presenting a business proposal.

The business proposal developed by the entrepreneur will provide him or her with information that is critical to secure financing. In addition, the process will yield valuable information about customers that will help the entrepreneur fine tune his or her business idea.

Failure to research customers can be costly. A product that is introduced by an entrepreneur into a market with insufficient market research will most probably fail. This is because the entrepreneur has entered into the market without sufficiently learning if there was a need for the product and for how much of the product. An entrepreneur needs to know the potential customer very well. It's not surprising that entrepreneurs who are most successful are those who visit as many potential customers as possible.

First the successful entrepreneur tries to sell the product and impress upon the potential customer need for the product. But at the same time, the successful entrepreneur also listens to the customer and tries to understand why there may never be a market for the product.

The bottom line is that a successful entrepreneur is always listening. He listens to his potential customers and he knows the value of market research.

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