Startup Business and the Importance of Market Research
The level of attention that you give to market research can either mean the success or demise of your startup business. Contrary to popular belief, taking your business from conceptualization to profitability does not simply require an innovative idea. This idea must be considered within the context that it will be implemented. There are cases where an idea can be great, but not great for a particular region, time, among other finer details. By conducting research and making wise use of the findings, you will position your startup business for meaningful success.
The Importance of Market Research
It is impossible to confidently develop and execute a marketing strategy without proper market research. Market research involves the collection of key information about the state of an industry/niche and its customers’ preferences. It is in market research that you will be able to get an understanding of how customers will react to your product or services. By ignoring market research, you are setting up yourself for a high chance of failure.
Here are some of the components of proper market research:
1. Conduct Primary Research
Primary research speaks to information that you gather on your own without consulting online data/reports or any other information researched and compiled by another (secondary research). One form of primary research that you can do on your own is SWOT analysis on your own. This involves assessing the strengths, weaknesses, opportunities, and threats of your business or idea.
2. Evaluate the Competition
Unless your idea is absolutely brand new and no one else is doing what you intend to do, you will most likely have competitors. Look at who your competitors are and assess what they are doing right and what they are doing wrong. This process can equip you with what you need to know about how to be successful in your particular industry.
3. Do Quantitative and Qualitative Research
Quantitative research can uncover useful data to drive the decisions of your startup business; however, qualitative research will help to add depth to qualitative findings. Quantitative research includes the use of surveys and questionnaires. This can evaluate a large population in a short time. on the other hand, qualitative research includes interviews, observations and focus groups. Qualitative research coupled with quantitative gives you a complete picture of the marketplace.
4. Ask Good Questions
Crafting and distributing questionnaires or surveys is a great way to get information about the market. Take time to effectively coin your questions so that you can get the best quality data that you need. It would be good to consult with an expert to review your questions and make recommendations.
5. Hire a Professional
If you have a budget that can facilitate the hiring of a professional market research firm, go for it! You will not regret it. The expertise that a reputable firm has will ensure that you get the best quality data from which you can make your business decisions. However, it is often the case that a startup business cannot afford to pay for someone else to do their research. In such a case you will need to do your own research.
Marketing is often placed on the backbench by businesses. This is particularly so with startup businesses. Make the difference and do all that is necessary to be among the 10% of startups that succeed.