With so much to do before you launch – assessing your market research requirements and conducting that research can seem like a daunting task. However, the right focused approach can set your business up for success. ‘Fools rush in where angels research first’ is not the phrase first coined by Alexander Pope in the 18th century but might have been had he been a start-up founder rather than a poet. Below are 5 pointers that will help you structure your research prior to launch.
Market research for new business – 5 Tips
1. Is your target market clearly defined?
Don’t be overwhelmed with infinite possibilities instead dig deep into your potential customer base. Identify your niche. For example, niche market of an IT consultancy firm with expertise in Cloud Computing technology would be SMEs struggling with huge IT operational cost.
Tip: Follow the Pareto Principle also known as the 80/20 rule and stick to your niche.
2. What’s your risk appetite?
Businesses must take risks to generate returns! Risk appetite may have an abstract meaning to most nevertheless any risk taken must be quantifiable. Identify what risks your start-up business is likely to face. And remember, it’s not just the risks you need to identify, but occurrence of their likelihood too. I’ll give an example . Your business is 95% reliant upon social media marketing to generate revenues and there’s a probability that this strategy could fail. You need to quantify the probability of risk occurrence.
Tip: If the probability is even 2%, then the business is far from survival in its first year. Re-design the strategy.
3. Are you ready for competition?
Unless you are creating your own blue ocean, you must be ready to face fierce competition. A good strategy would be a customer-centric approach, as is a clear focus on solving your customers’ problems with the products/services you introduce.
Tip: Interacting with your customers on social media networks can build long-lasting relationships.
4. Are you adding any value with your start-up?
You may have heard this cliché million times before, but it’s true that the key to successful business is ‘thinking like your customer’. Identify at least 3 compelling reasons to purchase your own product. Identify the ‘value’ that only you are offering.
Remember…“It’s easy to make a buck. It’s a lot tougher to make a difference” –Tom Brokaw
Tip: Think in terms of higher service levels, unique products, lower prices, product information, free delivery, extended warranty period etc.
5. Have you started building your brand yet?
Even before your start-up is launched, your brand should be existent. I am not referring here to a developed brand like Google or eBay, but a brand that you could see in its infancy. If you are thinking isn’t that too early, then re-think! Brand gives your business a personality that invites customers’ emotions and loyalty. Of course your start-up needs a personality to out-shine competitors, fast.Also read how to brand your business?
Tip: Purchase domain name, design your logo, chose and synchronise colour scheme of your website, product packaging, twitter and facebook pages etc.
Would you like help structuring your market research? We would be happy to help you so give us a call on +44 (0) 845 2264 247 or drop us an email via firstname.lastname@example.org – We look forward to hearing from you.
We hope you find this information useful.
Marketing Fundamentals Team
This guest post for the Marketing Fundamentals Team was written by Afsheen Jafry