2. Get into the skin of your customer 

Customer analysis is very important because customer behavior can make or break your business. If you are operating in a price-sensitive market, then your customers will ditch you if they get a similar product for a few cents cheaper; if you're hawking a niche product, then there are chances its novelty factor may wear out after a brief period – maybe, a competitor will cotton on and produce a slicker product at a cheaper rate, and when such situations come up, will your customers stick with you?  

Understand, we are living in a world where lifestyles are evolving rapidly, a world that's being ruled by technology, which again is fast getting obsolete by the day. Therefore, it is important for any entrepreneur to get into his customers' psyche and think like them. It is no longer enough to begin a business because people demand a product – it is imperative to get into the skin of your customers, think like them and then reconcile this thinking to determine whether or not a product will survive for a long term in the market. 

3. Compute your competitors 

Think your customers through, then think about your competitors, and then go on to outthink them – this is one business rule every entrepreneur must follow. Competitors teach you things – and here's what you must try to learn about them: 

Once you understand how your competitors tick, you then need to work on strategies on how to outsmart them. For that, you have to understand their strengths, sniff out their weaknesses and then exploit them to your advantage.