Jumping into a new business venture can seem like an overwhelming and scary move but there are various steps to take to make the transition as stress free and smooth as possible; market research is one of those steps. Here we explore some of the reasons market research is such an important operation when considering starting or growing your business.
What is Market Research?
Market research is the establishment of probing questions about your intended market and ultimately answering these questions to help influence the direction you take with your venture. It involves the collection, analysis and interpretation of information about a market, product or service, plus the past and potential customers in the market.
Set Better Goals for Your Business
When business owners set goals for their business, it’s typically related to growth in sales or customers. But without market research, you won’t be able to know if your goal is achievable and how to achieve it in the first place.
You might say that you want to double sales by the end of the next quarter; but how would you know if this goal is even feasible if you don’t know whether the size of your target market is more than twice the size of your current customer base? Without knowing the current size of your potential market, you’ll just be setting arbitrary goals.
With market research, you’ll be able to create specific targets you want to grow your customer base. For example, do you want to grow your customers via a new untapped market segment? Or do you still have room for growth with your current target audience?
Market Research minimises risk
Without market research you are blindly entering a market and hoping for the best without having any real clue on whether or not your business idea is going to be well received by your target audience. This can be risky in terms of wasting precious time and money, but a good market research strategy will provide you with the tools to reduce your level of risk.
You wouldn’t set off on an unknown journey without a plan and a map, would you? The same thing applies in business, you need information to give you an idea of where you are heading. Market research can help you avoid costly business mistakes by showing you who your ideal customer is, or to help forecast market fluctuations and by granting you the ability to set realistic goals regarding growth and market share.
Know your customer
It’s imperative to have an idea of who you are selling to so you can tailor your product or service to suit your customers so perfectly that they’ll never want you to go away.
Researching your intended market gives you the insight to ascertain whether or not you’re going to meet the needs of your target audience. Who are your target audience? What triggers them to buy? How often will they purchase your product or service? Answering these questions means that you can build your marketing strategy and business idea around solid information to better be able to fill a need in your ideal customers life. You could even discover an area of business that isn’t being covered by your competitors which could become your niche.
Knowing who your customer is gives you the power to tap directly into what it is they’re looking for in a product or service and gives you information on how best to advertise to these people, which paves the way for you to improve your customers life with your business.
Stay ahead of your competitors
Without conducting market research, your competitors will have the upper hand in the marketplace. If you want to stay ahead of the game then you’ll need the insight market research can provide to identify weaknesses in your competitors’ approach, as well as any areas to improve that remain untapped. Discovering what works for your competitors is a great way to gain knowledge of a strategy and then apply your own creative spin on it to gain leverage in the marketplace.
Market research can provide answers to questions regarding pricing, product improvements, customer needs, marketing strategy, and much more. When you have a clear idea of what works and what doesn’t work, you’ll be able to save time and money by launching your business the best way.
Setting up a new business can be a time consuming, costly and stressful task that you don’t want to waste time and money on if it’s not going to become a worthwhile endeavour. There’s nothing worse than wasting precious resources on an idea only to discover that it wasn’t a viable option. Being able to test your idea quickly and for as little money as possible leaves you with more time and money to be able to hit the ground running once the idea is validated. In our upcoming E-Course, we will teach you the 3 Key Strategies to fast-track your business success by validating your idea and getting a feedback loop from potential customers without spending a cent and before you invest any money into building your business.
Market research really is imperative to the planning of a business and the reasons listed above are only a drop in the ocean of why it’s an important factor. Going into business without an idea of how to navigate the venture is a stressful and resource consuming operation that can be avoided by efficient and effective market research. Module 2 of our E-Course Wealth for Women, 8 Easy Steps to Business Success teaches you the 3 Key Market Research Strategies to fast-track your business success by validating your business idea and getting a feedback loop from potential customers without spending a cent and before you invest any money into building your business. Take the stress out of your business planning by learning how to do it right the first time around so you can fast track your way into the marketplace.
For more tips and tricks on how to start or grow your own business, join us on social media here:
And sign up for updates for our upcoming E-Course, Wealth for Women, 8 Easy Steps to Business Success via the link below:
Remember, your success is my priority!
Business Mentor and Master Coach
Founder, Radiate Coaching + innerCIRCLE6