Test the Waters
Tom decided to open a rental business. His store offered the finest table linens, chairs, and various items necessary for large parties. After two months, Tom had lost several thousand dollars. He racked his brain trying to figure out what he had done wrong. He asked several people who lived in his town, why they didn't take advantage of his quality products and reasonable prices. Everyone said the same thing, "We live in a farming community. We don't have time to have many parties because we are always working."
Tom had an idea. He decided to take a risk and invest more money into his business. He bought expensive time-saving equipment that most farmers couldn't afford to purchase. A month later, he not only recovered the money he had lost in the first two months, he made a profit.
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To run a successful business, you must research the market before you invest time and money. Searching existing data, setting up focus groups, and observing your would-be-competition are excellent ways to discover if your business will be successful. If you do not research your business before you embark on an entrepreneurial journey, you are risking countless hours and dollars.
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