Getting enough information on your target market of potential customers is vital to starting a business that will produce income. Making guesses on what the customer really wants will not bring you very far, so it’s important to do some digging and get the answers directly from them through market research which is an important steps to starting a small business.
Some of the following questions to ask in order to device effective strategies:
- Who is going to buy your product or service?
- What kind of people are they? (buyer, influencer or end user)
- How big is the market? (Competitor’s annual sales would give you an estimate)
- How will market trends going to affect your business?
- Does your business has any unique selling point?
- Is the need for your product or service currently not being met?
- Is the market already saturated?
Why do it?
You will not be able to sell something or services that has no demand. Knowing what the market is looking for and so that you can present it in a new twist, drives the need for a market research. The advantage of small businesses is that they are close to their customer and can easily get information on their purchasing habits.
How to do it?
Most of the big companies spend huge amounts of money on elaborate surveys from renowned researchers to determine if their products or services will appeal to customers at a price they are willing to pay. But for small business owners on a tight budget, there are other means to collect the key data needed without having to spend a fortune.
3 ways to collect information:
- Get business school students to collect data at the mall.
- Look for financial data and statistics in local library.
- Join trade association not only to access market research they have conducted but do the networking there as well.
Do I need any ongoing market research while running the business?
Yes, this is how you gather information to evolve and adapt to the changes in market trends.
3 types of methods:
- Keep a close watch on what your competitor is doing.
- Install point-of-sales software to track sales or services trend.
- Put up customer suggestion box where they can write suggestions.
Every business needs to conduct market research, it is a crucial steps to starting a small business, and tight budgets are no excuse for omitting a research plan. By starting out with some easily accessible resources, you can begin to develop better marketing strategies that can position you for market growth.