Question

A donut shop’s new owner, Vance, decided that he was going to finally make the donuts he always wanted to eat and offer those to his customers. He spent a month coming up with twenty wild and crazy donuts. When he opened his doors again at his grand reopening to his surprise there were only two kinds of his custom donuts that people liked. What mistake did Vance make:

Answer 1

Did not perform market research. This is a very important process before starting any business. Through market research you can get information about basic customer characteristics like preferences, age, income and then direct that information to find out where your potential customer is. Through this tool it is also possible to determine the viability of the business in a given region.