An aspiring entrepreneur who wants to open his own business in the service sector must first conduct a comprehensive analysis of the potential market and, based on the results, determine whether the services offered to him will be in demand, and to what extent. Without such analysis, his business may soon end in failure.
Instructions
Step 1
First of all, assess the market situation, that is, collect information about the ratio of supply and demand for the services that you plan to provide. If it turns out that in a given region the market is oversaturated with offers of similar services, and there is very tough competition, it will not be easy for a new entrepreneur to attract a clientele. In this case, it makes sense for him to think about other types of business. Or, from the very beginning, you should make an effort to stand out from the general background, attract the attention of potential customers, for example, by setting more preferential prices compared to competitors, holding promotions, etc.
Step 2
A very important indicator is the market capacity, that is, the total value of the cost of services that consumers can buy over a certain period of time. You can evaluate it using statistical data or opinion polls. A good and inexpensive way is to survey potential buyers at their place of work. Think carefully about the list of questions. It should be short, clear and non-irritating to people.
Step 3
It is also necessary to assess the development trend of the services market, that is, to find out whether potential customers will use services at about the same level as before, or the demand for these services will increase, or it will decrease. A lot here depends on the economic situation in the country in general and this particular region in particular. For example, if an entrepreneur decides to start working in the field of tourism services, economic stability will be favorable for a successful business, and economic turmoil will certainly lead to a drop in demand for travel packages.
Step 4
And, of course, it is absolutely necessary to collect as complete and accurate information as possible about the pricing policy in the service market. Try to get this information from various sources and analyze it carefully. Based on this, determine the prices for services in such a way that they are more attractive than the prices of your competitors, and at the same time cover all costs and provide a more or less acceptable level of business profitability.
