Question

What crucial step should be taken before starting a business, according to the statement?

a) Research market trends
b) Secure a business loan
c) Obtain local licenses
d) Establish a marketing strategy

Answer 1

Before starting a business, the crucial step is to research market trends. This involves gathering and analyzing relevant data to inform decision-making and align strategies with the target audience.

Step-by-step explanation:

Before starting a business, a crucial step according to the statement is to research market trends. This involves collecting and analyzing sources relevant to your business idea. This research helps in understanding what is already known about the market and what additional information is needed. It positions the entrepreneur to make informed decisions and develop strategies that cater to the target audience's needs and preferences. Furthermore, extensive market research can inform other critical aspects of launching a business, such as financial planning, identifying potential competitors, and refining the business structure, whether it's a sole proprietorship, partnership, corporation, or any other form.