Market Research: Why you should do it
Having an idea and converting that into a business can be an exciting process. From imagining the possibilities to executing them, business owners can sometimes lose sight of the necessary market research to understand the market they are trying to enter. Some may get lucky but that is not always the case!
Here are several benefits of how market research can help you and your start-up:
You can identify opportunities within the marketplace.
You may find that the research results might identify issues with the service or product and might not be what the market needs or wants. However, you can use that to adapt your business plan and ultimately the product or service you plan to create, to the needs and wants of your target customers.
You can reduce your risks through market research.
Throughout your research, you will come to find specific questions which you will need to answer and define in line with your business’s objectives and goals. It will make you really drill down what you want from the company, and in that way reduce the level of unknown and risk.
You will be able to understand your position amongst your competitors.
The results can show you where you stand and where your competitors are. From there you then have the knowledge and tools to tweak relevant areas and make necessary changes to ensure your product or service is competitive in its own right.
You can plan ahead.
It can estimate the likely sales of a new product/service and also the advertising expenditure required for you to achieve maximum profits.
You will be able to identify trends and your positioning.
You should conduct market research periodically, and not just when setting up your business. It will help you:
- Monitor your customers’ demands and the market trends
- Benchmark and monitor your progress, and plan accordingly to ultimately grow your business
You can communicate with your existing and potential customers
When you have done your research, the results will give you all the necessary information on how you can approach your target customers in the most effective way. The results can tell you what they like/dislike to see/hear/do, and you can use that to come up with a plan of attack and understand your customer demographic extremely well.
If you’re currently looking to start a business, make sure you’re continually doing research. The market is always changing, so strong research skills will benefit you long after you start your business. The key is understanding WHAT to research and WHY.