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Why an entrepreneur needs to carry out research before starting up a new business

There are many steps needed for setting up a business. Researching the business idea and/or the need for a product is one of the first steps that needs to be carried out.

Why do research?

  • The entrepreneur needs to find out what the competition is, as they will need to decide how they are going to overcome any competition.


  • The entrepreneur will need to find out if there is a demand for their product/service as the business could turn out to be a failure if there is no interest in a particular product or service.

  • The entrepreneur will need to find out what price their customers are prepared to pay for their product/service so that they will be able to charge the customer competitive prices so the business can gain market share.

  • The entrepreneur will need to find out information about starting up a business, e.g. grants available, funding options for the business, providing the product/service, marketing and promoting the product/service and placing the product to help them get the business off to a good start.they will need to find out if there is a demand for their product/service as the business could turn out to be a failure.





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