HOW GOOD IS YOUR IDEA?
It’s easy to come up with a good idea or two; the hard part is ensuring your idea becomes a
commercially viable reality. First, understand how your business idea will fit into the existing
market place.
ASK YOURSELF THESE QUESTIONS TO HELP YOU DECIDE:
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Is your business idea filling a gap in the market place? Is so, how did you reach this
determination?
What point of difference will your business be offering to your potential customers?
How do you plan to maximise this advantage?
What are the main trends of the industry your business will be a part of?
Have you considered the main threats your business may face? How will you
minimise these?
Have you researched the existing market? Will your business be entering a market
where demand is greater than supply?
Have you analysed the growth potential of your business idea?
Have you considered the main opportunities your business has? How will you
maximise these?
RESEARCHING YOUR TOURISM IDEA
Market research is a key part of developing your business idea. Whilst you may think your
idea is brilliant and sure to succeed, it will still need to be researched and planned to
increase the likelihood of success.
The information you gather and analyse through careful market research builds the
foundation of good business decisions, such as:
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whether to start the business or not;
what types of tourism product to offer;
your main tourism markets; and
the best promotional methods.
There are several methods used to research your tourism idea.
ANALYSE TOURISM STATISTICS
There is a wealth of up to date statistical tourism information readily available for you to
analyse. For international, national and state information:
o Department of Resources, Energy and Tourism,
o Tourism Australia, and
o Tourism Western Australia
For more localised reports try the Australian Bureau of Statistics.
©2013 Small Business Development Corporation(All Rights Reserved)
SOME QUESTIONS TO CONSIDER WHEN CONDUCTING TOURISM MARKET RESEARCH
ARE:
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What are the top international markets into WA at the moment?
Is my preferred target market represented here?
How are these markets performing?
How is the tourism industry in general performing?
What marketing is Tourism WA currently doing in my preferred international
market?
What current economic conditions are adversely affecting the tourism industry?
What current economic conditions are positively affecting the tourism industry?
What are the future predictions for the tourism industry?
SURVEY POTENTIAL CLIENTS
One way to determine the viability of your new business idea is to survey potential
customers, you can do this in person, through focus groups, over the phone or online. Here
are some survey tips:
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Choose a location to conduct your survey that is frequented by your ideal customer,
for example a major tourist attraction or destination
Always seek approval from property owners or local council before conducting a
survey.
Analyse the results of your survey – if the results clearly show that your idea is not
as viable as you believed, then do not start the business.
ASK THE INDUSTRY
What better way to find out how the industry is performing than to ask those currently
operating in within it. Meeting with tourism industry professionals and like minded
businesses and asking candid questions is a great way to get the real truth. Here are some
suggestions:
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Local Visitor Centre
Major Attractions
Regional Tourism Organisation
Hoteliers
Tourism Council of WA
Other Tourism Operators
Tourism Western Australia
OTHER MARKET RESEARCH AVENUES
o The Australian Bureau of Statistics
o IBIS World – make a booking through the Small Business Development Corporation to use
this market research tool for free
o FMRC benchmarking - make a booking through the Small Business Development
©2013 Small Business Development Corporation(All Rights Reserved)
ANALYSING YOUR COMPETITORS
Even if you feel that your business idea is unique and new, you will still find that you have
competitors that you will need to consider.
What are the unique strengths and attributes that your business has and what are the
advantages that that you will have over the competition?
When you are conducting your market analysis consider if you are stronger than, equal to or
weaker than your competitors in the following areas:
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location,
price,
product or service range,
brand recognition,
method of distribution,
advertising,
appearance and image,
growth potential,
level of customer service.
©2013 Small Business Development Corporation(All Rights Reserved)