Researching Your Market
Hopefully by now you have determined whether self-employment is for you and what business idea you are going to pursue, exciting! Next up is researching your market.
The importance of this cannot be stressed enough as taking any business idea to the next stage is essential to prove, using reliable information, that there is sufficient demand for the product or service in the market. You could have the most ground-breaking product or service but without marketing, it may never reach your target audience therefore we recommend you follow these guidelines:
- Who are your potential customers?
- Why should they buy your products/services?
- What methods will you use to reach them e.g., online sales, website, premises, word of mouth, etc?
- Competitor analysis i.e., name, location, what is good and bad about them in your opinion?
- Where do they currently buy?
- What makes you different from your competitors e., why would a customer buy from you and not one of your competitiors?
- When is the right time to launch the business/your marketing campaign?
Market research will form a major element of your business plan and determine if there is a market for your product or service. If your research determines that the business will not be a success, then think of the amount of money you will have saved by not starting this business or even better; refine your idea based on results of your research.
In conclusion, let us look at some of the key benefits market research provides for a start-up.
- It helps determine market need – A product must satisfy a need, if consumers don’t need it, then they won’t buy it!
- It helps determine market location – A company in the right location attracts the most customers.
- It helps reveal the competition – Uncovering what everyone else is offering can identify any gaps between supply and demand enabling your new business to better exploit them and gain market share.
- It helps inform marketing practices – Market research is vital for start-ups because it helps determine the type of marketing campaign that is necessary to reach the most people in your target market.
If you are interested in starting a business, but unsure where to begin with your market research, contact one of our business support team to discuss how to turn your idea into a reality.
