You have a business idea and you want to bring it to fruition. Performing market research is an important step to help ensure your new endeavour will be successful.
What is market research?
Market research is the process of learning why consumers will want to purchase your service or product. The information you acquire will be an indication of your target market’s needs and preferences. Having information about potential customer’s spending habits and types of purchasing decisions they make can help you figure out the best way to make your business appealing.
How to conduct market research:
Perform customer research!
You’ll want to know about your potential customers, such as their age, education level, location and occupation. Review their current buying habits and whether they’re willing to pay more for quality or they’re adhering to a budget and go for lower cost at the expense of quality.
Analyse your information to determine why your target group would potentially buy your product instead of something from another company..
Once you’ve identified your market and potential customers, ask about their needs and what they want in a product or service. It sounds intimidating but in this day an age where everything is online, you can conduct virtual interviews through polls and surveys on social media. Reaching out to your potential customers is vital for understanding how or if your product or services will be relevant in the market. You may find things out like:
- The product or service you want to provide is already available.
- How much are customers willing to pay.
- How you can improve your products or services to be better than your competitors.
Understand the competition
Learn about other companies in the same or a similar industry! You can learn many things through surveying your competitors; the business landscape, and how they’ve managed to succeed. It can also serve as an indication of your rate for success in the market. Company size doesn’t necessarily matter here. You can also do this when you’re interviewing your potential customers. Ask them to clarify what they currently like about the competition and areas where they feel their needs aren’t being met.
Test your business idea!
You can start by offering your service or product on a small scale to get opinions and see how it works in real life. You can modify your business idea based on what you learn. Launching a small business can be challenging and often times, despite having a great idea is not enough to guarantee success.
And remember to always insure your business so you can be protected if the unexpected were to happen.