Understand your market

If you're going to start your own business, you should devote the majority of your first year to research and development. After you've created a prototype, you'll need to make sure that other people will like it as much as you do. Product validation assures that you're making a product that people want and will pay for, so you don't spend time, money, and effort on a flop.

The product research will save you a lot of money by preventing you from advertising something that no one is interested in. To make sure the consumer demands what you're selling, conduct surveys, run beta testing and get input from friends. Before you launch, figure out how you can improve the product or service. Changes in packaging, for example, may have a big impact on whether or not people buy your items. Investigate your rivals' low-cost manufacturing solutions or services to see whether they're employing them to cut your product development or service expenses.