Do You, Dont You?

[GPSS]

Without giving to much away I am gathering market research into providing package holidays catering to a niche US market, which is not currently being serviced in the UK.
The touble is I dont know how to gather this info, statistics, trends dont apply, as I would be essentially creating the market from scratch.
Primary market research directly relating to my business is as follows,

I posted a survey on US sites to which 89% said good idea

There are four companies working on the European mainland doing the same as me, and have been trading for around four years now. Although I can find no finacial figures for these companies. But I figure they must be working if they have been trading for so long.

I am now at the stage where I have to decide if this idea is a goer or not, before investing £5000 which is quite a lump of money to me.
1. How do you value the above market research
2. Does anyone have any ideas as to what else I could do to get a clearer picture. Cheers

[srebbe64]

I find it hard to believe that £5k could set up a successful business. What level of profits are you anticipating?

[GPSS]

5K goes on website, legals, but mostly on initial advertising. I wont be drawing wages for 1st 6 months. Because of Package tour regs I cant get at customers money until after the package has taken place, so will have to sort bridging loan to finance that short term.

But its the market research I need some pointers on

[mogul]

srebbe64 said:

I find it hard to believe that £5k could set up a successful business. What level of profits are you anticipating?

I disagree. My own experience is starting a business with under £2000 borrowed capital and now over 12 years later I own a business with very healthy profits and well over a 7 figure turnover.

I'm not sure how the information would be gathered for GPSS's project as it woulds be useful to know a little bit more about the services being offered.

FWIW I say if your business plan stacks up and you're really sure, give it a go (ignore the fact I have never written a business plan )

GPSS, if you would like a more detailed opinion and you are happy to PM me - please do. I may not be able to help, but who knows!

Good luck either way.

[StevieBee]

Mintel.

£700 should get you an incisive market report.

[NewNameNeeded]

mogul said:

I disagree. My own experience is starting a business with under £2000 borrowed capital and now over 12 years later

I don't disagree with your point but i'd argue that £2k 12 years ago is a world of difference from £5k today.

Edited by NewNameNeeded on Wednesday 26th March 12:39

[Brown and Boris]

I have always been concerned about research which asks pople if they would be interesting in buying X if it were available. I think peple say 'Yes and I would pay hnsomely for it' if they think you are doing research because you want to hear that and 'No' or 'Yes but not at that price' if they think your next word will be a sales pitch.

Having said that unless there is a competing product you think you can undercut I have no suggestions as to how else to find out and I guess you have done what.

You could ask pople ro rank the and rate desirability of a number of simiar products including your own to make sure they donlt say yes to everything and to place your product in the pecking order as I am guessing thse folks must holiday somewhere already?

[mogul]

NewNameNeeded said:

mogul said:

I disagree. My own experience is starting a business with under £2000 borrowed capital and now over 12 years later

I don't disagree with your point but i'd argue that £2k 12 years ago is a world of difference from £5k today.

Edited by NewNameNeeded on Wednesday 26th March 12:39

I wouldn't argue with that

However my caveat would be if I can do it anybody can...