As a Start-up, failure to do market research before you begin a business is like driving without a direction. Most start up owners are so in a haste to make their business idea a reality thereby putting less focus on market research. For a Startup, it is important to know if the nature of the proposed business will be profitable in the future. Therefore, before taking a leap, market research is what is needed to be done.
In conducting a market research you need to “define your idea” by asking yourself the following question,
- Which industry does my business belong to?
- Who would be my Target Audience?
- What should be my Target Geography?
- Do I have competitors or I’m I the one with unique idea?
After giving appropriate answers to those questions you can then follow the two approaches to conducting a market research. These approaches are; a) Primary research and b) Secondary research.
Primary research; involves conducting your own research about the products and services that you plan to offer and your target audience.
Secondary research; involves analysing data that has been published which can be used to create a standard of evaluation and understanding the competition.
Though there are no set order to gather your data but conducting the market research first can help give you background information that will allow you to create a more targeted primary research that produces a more improved data.
- Search for your competitors and study why your target audience are going to those competitor companies.
- Study more on business model & revenue model of your competitors.
- Analyse the factors, areas through which you can make entry into the market.
- If there are fewer competitors in this business then study what problems your target audience is facing.
Primary Market Research:
- Do not just blindly go with the start-up idea after reading secondary research, you should directly study your target audience as per your business aspect
- Prepare a short and crisp questionnaire with precise questions on understanding why those people would need to purchase services/products from your start-up
- Based on the data collected, you can make your decision.
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