Sri Lankans are an enterprising lot and seem keep to opening new businesses. But how much research is done beforehand? Sri Lankan entrepreneurs, SMEs and startups have a lot to consider before starting a business. Here’s some key research areas to focus on:
Market Research:
- Identify a gap: What problem can your business solve, or what need can it fulfill? Is there a demand for your product or service? Understanding your target audience and their needs is crucial. For instance, if your business is going to be in a high-spend area will they use a shoe-repair business?
- Competitor Analysis: Who are your competitors? What are their strengths and weaknesses? How can you differentiate yourself? ie- if you are selling light-fittings how different can your items be? Price-wise or trend-wise or quality? Has a similar businesses started in that area that has not worked out. Why? And if so how can you do better?
- Industry Trends: What are the current trends in your industry? Are there any regulations or changes on the horizon that could impact your business? Ie if you are planning to import something and there is a high tax you won’t be able to compete with other sellers.
- Location and buyers – where would you sell? Online or in-store. If its in-store is it a location where your product will draw interest. Do persons in that area able to afford your product and would it interest them. ie – high-end designer handbags will not be suitable in a lower income area etc.
Business Planning:
- Business Model: How will your business generate revenue? What are your pricing strategies? Can you make a profit at the price you plan to sell?
- Financial Projections: Create a financial plan that forecasts your revenue, expenses, and profitability. This will help you secure funding and track your progress.
- Legal and Regulatory Requirements: What licenses and permits do you need to operate your business legally? Understand the legalities involved in your industry.
Additional Considerations for Sri Lanka:
- Government Support Programs: The Sri Lankan government offers various programs to support entrepreneurs. Research these to see if you qualify for any assistance.
- Funding Options: How will you finance your business? Explore options like loans, grants, or personal investment.
- Cultural Nuances: Consider any cultural factors that may affect your business operations or marketing strategies.
Here are some resources to help you get started with your research:
- The Sri Lankan Chamber of Commerce ([Sri Lanka Chamber of Commerce website]) offers resources and support for entrepreneurs.
- The Board of Investment of Sri Lanka ([Board of Investment of Sri Lanka website]) provides information on investment opportunities and business registration.
- The National Enterprise Development Authority (NEDA) ([NEDA Sri Lanka website]) offers training and support programs for entrepreneurs.
- Export Development Board – if you are planning and export business they will support you will knowledge
Remember, thorough research is absolutely essential for increasing your chances of success. By understanding the market, planning your business carefully, and taking advantage of available resources, you’ll be well on your way to becoming a successful Sri Lankan entrepreneur.
Good luck – the Diriya team
>>>How to identify the right market segment for your business