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Friday, June 17, 2011

Market Analysis: Your Plan for Profits

Before investing any money in your business, you must gather information about your potential customers and the demand for your product of service.

This information, or market analysis, is a necessary part of planning a profitable business.

Invest time in this crucial step now and reap the rewards of a successful business.

BENEFITS OF MARKET ANALYSIS
       
1) Faster Cash Flow
Knowing who your customer is, what they need, and where to find them is vitally important. Targeting the right people is crucial for generating cash flow in the shortest time possible.

2) Greater Market Share
An examination of current market conditions tells you who your competition is, the size and location of the market, current competitor pricing and promotional strategies, and types of market niches which are underdeveloped.

Positioning your product for greatest exposure, while creating an image of quality and value for your product, allows you to become a serious player.

3) Reduced Expenses
A leading cause of business failure is lack of capital - the business runs out of start-up funds before becoming profitable. It's important to make every penny count. You reduce expenditures by trying to predict outcomes before taking action. There is always a certain amount of risk with any business venture, however, analyzing your market reduces that risk.

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