You are wise to consider conducting a thorough analysis of
your market instead of plunging head-on with your planned wine
bistro business. Market analysis is the foundation of a business’
sales and financial plans.
However, a good analysis of the market entails comprehensive
market survey, the costs of which may be beyond the reach of
many small business owners. If you do not have the money to hire
marketing research firms, there are a number of cost-effective
methods to help you determine the viability of your planned wine
bistro:
· Shop the marketplace and get some feel about business
conditions. Talk to other business owners in a similar venture
(in a non-competing area) to get their feedback about how they
see the potential growth and expectations for their wine bistros
in future years. Do the businesses appear profitable? Are
customers waiting in line and paying high prices? Or are wine
bistros in areas similar to your planned location struggling to
survive? A strong demand means there’s probably another room
for a supplier. The firsthand information that they can provide
could be very useful in developing your business plan.
· Check the Yellow Pages to see how many wine bistros
already exist in your area. Call them to find out how long they
have been in business. While you’re at it, compare previous
year’s edition of Yellow Pages to check if the number of
businesses similar to yours has increased, decreased or remained
stagnant. A decreasing number of firms may be an indication of
weakening demand, while an increasing number may mean that the
market can still absorb the presence of similar businesses.
· Talk to friends, relatives, and strangers for their
opinions about your business concept. To the extent possible,
survey prospective customers in face-to-face conversations,
telephone interviews or mail surveys. Ask them directly –
would they check out your wine bistro, how frequent will they
visit, and what price would they be willing to pay? Ask others
in your community what they like and do not like about wine
bistros in general. More specifically, ask them what they like
and what they don’t like about your competition – from the
ambience and décor, wine inventory, sound system and music
selection, etc. Carefully listen for any indication of unique
features that, if offered, will provide an advantage over
competition. You can position your business to fill a niche that
may have been left open by your competition.
· Meet with wine suppliers, which are another source of
excellent information. They know what’s selling and what’s
not and generally have a good feel for market trends. You may
even get some inside scoop on your competitors’ operations,
e.g. wine preference of their customers, etc.
· Join industry associations of restaurateurs, wine clubs,
Chambers of Commerce, and other relevant organizations.
Attending meetings of these organizations will give you a chance
to network and get some feedback about the predicted growth of
businesses like yours in the area. Your chamber of commerce may
also have data about your market, including consumer
demographics and the number of competitors in a geographical
area. Trade associations are excellent places to locate valuable
marketing information.
A word of warning, though: A positive reaction to market
research doesn’t assure success. People sometimes say one
thing and then act differently. But doing some research is still
better than acting on a gut feeling.
Good luck!
About
the PowerHomeBiz.com Guide:
Nach Maravilla is
the Publisher of Power Homebiz Guides. He has over thirty years
experience in sales and marketing of various products, which
covered as he jokingly describes, "from toothpicks to
airplanes" He also had extensive experience in
International trading and he always excelled in special promotional
ideas for retail outlets.
