3 Easy steps to research your startup business idea.
The capacity to perform extensive research is one of the most effective tools available to you as an entrepreneur. It might be the difference between establishing a company with true potential and launching a firm that will never flourish in the commercial world.
3 Easy steps to research your startup business idea
Research requires far more than simply asking your friends and family if they’d be interested in purchasing one of your products.
If you are creating a new product or service, your market research should involve a thorough assessment of your potential market as well as your competitors, industry trends, and estimates of the industry’s future development and direction.
Essentially, you’re aiming to answer the following question: are there enough people out there who will be interested in acquiring my product or service at the price I want to charge them for the company to be profitable?
The good news is that there are several resources to help you, many of which are entirely free.
[more information: ResearchGate]
1: Create a market research strategy
Market research is a program of research that establishes the potential success of a proposed service or product through consumer investigation.
Market research allows a company to identify its target market and obtain comments and other input from customers on their interest in a product or service.
Market research may assist you in determining who your target audience is and how to successfully contact them, as well as how your product or service uniquely addresses an issue that the audience is facing.
Primary and secondary are the two categories of market research. Primary research includes any information gathered directly from your target audiences, such as focus groups, questionnaires, and interviews.
This can assist you in better understanding your potential clients’ habits, interests, and needs, allowing you to tailor your products accordingly.
Secondary market research is obtained from the general population or from outside sources. Public sources such as government statistics, commercial sources such as market reports, and internal sources such as your company’s own marketing data are examples of these. This data may be used to determine trends and patterns, allowing you to tailor your marketing.
Consider where your target audience spends their time while performing market research, and then focus your efforts on those channels. Reaching out to individuals on Instagram, for example, may not be the greatest use of your time if your target consumer isn’t a large social media user.
[More information: US Small Business Administration]
2: Conduct a competitive study on your rivals.
Competitive analysis entails identifying your direct and indirect rivals and researching their strengths and shortcomings in comparison to your own. Direct rivals market to the same audience as you, whereas indirect competitors market to a separate audience.
Once you have a better understanding of your target audience, you’ll need to do the same for your rivals. It is vital to do competitive research in order to determine your competitors’ strengths and weaknesses.
This not only allows you to compare your own company concept to others (and where you may need to improve), but it also provides important insights into market trends that you may not have been aware of otherwise.
The first step is to identify your company’s main competitors, which can be done easily by executing an online search for your product or service category. Direct rivals are separated from indirect competitors by the following criteria:
Direct competitors are those who are targeting the same population as you with a comparable product or service, whereas indirect competitors may have small distinctions in their product/service or target demography.
Researching both may help you uncover prospective areas of development for your own firm, as well as to detect and manage any potential threats to your company’s success.
Once you’ve identified your main competitors, you should look into their online presence by visiting their websites, blogs, and social media accounts. Consider subscribing to their email lists and following them on social media to get a feel of how they interact with one another.
After that, make a note of your findings and use the knowledge to fine-tune your business concept, as well as its goods and services. [more information: Forbes]
3: Conduct a swot analysis.
SWOT is a method or tool for investigating four areas of your start-up idea. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT Analysis – a method that may help you in finding out what your organization does well and develop a successful future plan.
A SWOT analysis supports you in objectively examining internal challenges, and also external challenges that may have an impact on the operations of your firm. SWOT analysis is a tool for establishing a company’s strengths, weaknesses, opportunities, and threats.
Take some time to consider what your firm does well, where it can improve, what opportunities exist for your organization to capitalize on, and what external threats may have a negative impact on your company.
After you’ve completed your research, but what you’ve learned into action by creating an executable plan that will allow you to capitalize on your company’s strengths while reducing the consequences of any weaknesses that may present.
Finally, keep in mind that your initial business concept research is merely the first step of your company’s development. As a result of these circumstances, your product or service, target client, and the market may change over time.
Regular examination and study of your company’s operations will provide it with the best chance of long-term success.
The history of an entrepreneur and the start-up conditions have a significant influence on the likelihood of that firm being sustainable. Start-ups that are well funded are more likely to succeed.
More experienced business owners are as well. A thorough study conducted before establishing a start-up, on the other hand, will have a significant influence and will assist to level the playing field.
Research at this early stage is a good investment in your company’s development. It is tempting to overlook adequate research and instead jump straight into the business start-up, this is a big mistake and is something you should avoid.