Issue link: https://docs.hic.us/i/403552
C C h h a a p p t t e e r r 1 1 - - P P r r e e l l i i m m i i n n a a r r y y R R e e s s e e a a r r c c h h Before making a commitment to any type of business venture it's imperative that you do some preliminary research to determine if this is the right decision for you. Investigate potential markets, embellishment equipment, shop location, shop equipment, software, financing, etc. to be sure you understand what's involved for starting and operating a successful Decorated Apparel Business. Identify Potential Customers This is one of the most important issues for a new business owner. No Customers Means No Sales! Look around and see who you can sell to and what you think they will buy. There are plenty of opportunities, but look past the most obvious targets to identify markets that aren't being serviced at all. There may already be other Decorators in your area. Don't go head-to-head with them, but do find out what they offer and who they service. Directly challenging an established business usually involves a price war that nobody wins, especially you. Look for your own customers, based on who is not being serviced by the other guys. For example, many of the larger shops don't like to do small orders. This could be a strength for you. Another area to consider when looking for potential customers, is your own background. Are you currently employed? Chances are you are surrounded by potential business. Use these contacts to carve out business relationships. It's much easier to make sales in an environment that is comfortable and familiar, than having to go out and knock on doors. And don't just look around, write it all down. This information will be invaluable when it comes time to create a Business Plan. One exercise that you can do to help you generate a potential list of customers is as to take a sheet of paper and divide it into to three columns. In the left hand column list the name of every person that you know. Friends, family, co-workers, neighbors, church members, club members, etc. You'll probably be surprised at how many people you really do know. In the center column, write down each person's occupation or special circumstance. Special circumstance might be President of a fishing club, or member of a civic group. Then in the third column, give each person a ranking as to whether they could be a potential customer or not. Use a scale of 1-3, with 1 being a hot Lead, 2 being a possible lead, and 3 being a dead end. Put some thought into this process. It's tempting to rank business owners high and everyone else low, especially someone like a housewife. However, if you are thinking about providing monogramming and personalization services, then gift items will be a big seller. Thus, housewives have the potential for being ranked at the top. www.hsi.us care@hsi.us 6