6 min read
When you hear startup success stories, you usually hear about a founding team composed of one person and a laptop or one person and their roommate...
As a startup, it is crucial that you conduct market research to determine the feasibility of your business idea - regardless of how great you believe it is.
This vital step will determine how large your potential market of customers is and will help you to predict how successful your venture will, or won’t, be.
There are many resources available to help you with this process, including government agencies and private sector organisations. We've put together a quick guide to help your startup be the success it deserves to be.
There are some basic elements of market research a startup needs to consider.
A better understanding of your target market is key when conducting market research for a new business.
This will give you an appreciation of the size of the market for goods or services, the competition and where there may be room for you to thrive. Once you have collated this vital knowledge, you can begin to identify your competition.
To stand out from your competitors, it is important to scrutinise their marketing and buyer retention strategies.
Who are they? What do they offer? How do they market their products? By knowing this, you will know what questions to ask and what data to collect.
To find your target audience and discern how you will present your product to them, you will also need to identify your ideal customer profile.
What are their buying habits? What motivates them to make purchasing decisions? These answers will form your marketing game plan, determine pricing and create a brand proposition that resonates with your target audience.
With this information in hand, you'll be well on your way to success with your new business.
You can conduct surveys and focus groups. Ask your target consumers about their thoughts on your product or service, including interviews and observation.
Analysing the data you collect will help you understand your market and make decisions about your new business. You should also analyse data about your potential rivals from social media and other online platforms.
What are people saying about their product or service? Is there a niche you could exploit? This will help validate your idea.
This can be done through a variety of methods, including presentations, reports and articles. This research will be vital if you are looking at funding.
Don’t lose sight of the fact that market research allows you to determine the feasibility of your business idea - and to understand your target market.
It is crucial to have a good understanding of your target consumers, their requirements and the options available to them.
This will impact everything from product development to marketing, sales strategy and seeking investment. And while large companies may spend millions on research every year, it is entirely possible to do market research on a smaller budget.
You are doing this to find the niche or edge that will help your new business to stand out from the competition. Fortunately, market research can help you not just effectively grow brand awareness but also make loyal customers.
The cost of carrying out market research varies, and you can influence the final cost by outlining how in-depth it needs to be.
You can select a specialist firm to do your market research for you, but you’ve got to allow a longer time frame than if you were doing it yourself because it will take time to get the results.
According to one marketing firm, you’re looking at:
That might be out of reach for most start-ups which is why you should consider free and low-cost options including:
Plus, you can interview industry experts to gain insights into your sector.
There’s no doubt that market research is vital for any new business. It allows you to better understand your target market and customers, validate your product idea, and stand out from your competition.
By following these tips, you can set your new business up for success and then, hopefully, look at implementing a share scheme to attract, retain and motivate the best talent.