Sharon realizes that she needs additional research before she approaches potential investors. What kind of research should she do to effectively evaluate her potential business opportunity?
Conduct market research to determine whether her business idea is a business opportunity that meets a consumer need or want.
Discuss the situation with her cousin who has shopped at the local bakery a few times.
Discuss the situation with a family friend who has money and might want to invest in her idea.
Analyze a national chain that sells pies and model her new business after it. This will save time and money that would otherwise be spent on independent research and planning.
Sharon should conduct market research to determine whether her business idea is a business opportunity that meets a consumer need or want.
Explanation: Market research allows Sharon to gather valuable insights about her target audience, including their preferences, behaviors, and unmet needs. This helps her understand the demand for her business idea in the market and identify potential challenges before approaching investors. Engaging with specific individuals or modeling after a national chain might provide some insights, but thorough market research provides a more comprehensive overview necessary for evaluating her business opportunity effectively.