What should an entrepreneur do first to assess a new business opportunity?

The first step an entrepreneur should take to assess a new business opportunity is to ask potential customers. Engaging directly with potential customers allows the entrepreneur to gather valuable insights about their needs, preferences, and pain points. This first-hand feedback is crucial in understanding the market demand for a product or service. By directly consulting the target audience, an entrepreneur can validate their ideas and ensure that the business concept resonates with potential users. This process of customer discovery is fundamental in shaping the business strategy and product development.

Researching competitors, while important, is often a subsequent step once there is a clearer understanding of the needs and wants of the target market. Investing in marketing should also come after validating the business idea, as it requires a solid understanding of who the audience is and what they want to ensure effectiveness. Consulting financial advisors is necessary for understanding the financial viability and structuring of a business, but it typically follows the identification of a clear business opportunity based on customer insights.