Monday, September 15, 2008

Market Research ; The Building block of a Business Plan

Last year in Octobor, I was into a TiE Networking meet in kolkata. I met a fellow gentleman who raised financed few days back ,at that point of time . He made a very interesting remark about why some business plan are funded and some are not .

He mentioned that normally a business plan made by an entreprenuer is inside-out, which articulates an entreprenuer passion, over the vision of his business. So, it talks about his aspiration to start a business, and which oppurtunity he can handle comfortably. However , in general, the plans which are funded are opposite way . The funded plan talks about a market oppurtunity first, and then elaborates it, and justifies that how the said business could comfortably, handle the market oppurtunity.

I cannot agree with him more . This is the reason , I think Market Research, is the building block of any business plan . Infact , it is orginal research ( known as primary research) which creates orginal data, can show the reliabile justification to the investor, that how the business could make a difference with his money, and give him 5x-10x return.

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