The importance of research before setting up a business

Starting a business is one of the most challenging things someone can do in their life. Having a great business idea isn’t enough to make a business successful. It takes a huge amount of determination, resilience, and energy. Creating a successful business also requires a lot of research. This research should cover a wide variety of areas and help you make decisions as you move forward starting and then running your business.
To get a first-hand account of the importance of research, we spoke with Tania Zahoor Rashid. As one of the founders and directors of Aesthetics Lab, a multi-award-winning cosmetic clinic in London, Tania knows how important research is to any industry, but especially when operating in one as competitive as the beauty industry.

Depending on the area of business you’re going into, some people may require more research into one area than the others. Some prior knowledge can help, and for Tania and her co-founders, Marsha Starcevic and Kristina Hutchins, that was definitely the case.

“As the three founders, we had some prior knowledge of the industry, both from the perspective of a client and from working in the industry. We were always passionate about the industry itself and were keen to create a beauty clinic with a difference” Tania explained.

Take your time to look for information

To improve their industry knowledge, Tania and her co-founders spent two years researching and setting up the business before they opened the doors to the public. “Knowing the industry inside out is paramount in order to set up the business and get everything right,” Tania said. “The beauty industry is saturated with equipment and products and knowing the technology, active ingredients, and how these all work with skin and body to produce results is paramount.”

The beauty industry is an excellent example of an industry which is very competitive and the importance of knowing exactly what services you’re going to offer before starting your business.

Market research and mystery shopping both have their benefits and can really help when setting up your own business. As Tania pointed out, “as long as you do it ethically, there is nothing wrong in doing this research. You do get to see what works and what doesn’t for other players in the industry and learn from it.”

Research according to the Business Sector

Along with the industry-specific knowledge you need to acquire, there are several other key elements you will need to research before setting up a business. These include where your business is going to be based along with the legal and financial requirements you will need to fulfill. There are also the elements of B2B working, which you may need to explore, such as marketing and if you are making a product the manufacturing and marketing aspects.

Another area which requires dedicated research is finding staff for your business. Successful business owners and managers continually say that their success is based on the people they hire. It is, therefore, crucial to hire the best possible people for jobs within your business.

This is not an easy process and it can take time. Also remember it is complicated if you’re operating in a competitive industry. Tania explained that in her industry, hiring great staff can be challenging, “due to the fact other beauty clinics want to keep the experienced staff, and they seldom have to look for a job.”

Hopefully, the points raised above have highlighted the importance of spending time researching before setting up a business. If the business you proposed is in an area that isn’t saturated with other businesses, some of the research you will need to do will vary to that of someone setting up in a competitive sector.

However, if you are starting a business in a competitive industry such as beauty, don’t get discouraged. As Tania told us, “the fact that market is competitive only means that there is a demand for what is on offer and that there is an opportunity to improve what is on offer, set higher standards, and do well.”

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