Most entrepreneurs are inexperienced and
ignorant to the discourse of business when they first embark on the journey of
managing a company. It’s not a bad
thing, but it is a fact worth acknowledging. That being said, a vast majority
of starting a business is education and in many instances, that education is
informal and self taught. One of the greatest challenges of an independent
business education is the experimental learning of trial and error. Some aspects of business will only make sense
once you’ve tried it a few times and realize what is missing. Other aspects
will come quickly and immediately and will pose no further threat to your
business.
The pedagogical journey of entrepreneurship
consists of a series of fundamental factors that should be considered and
practiced for any serious contention for a successful business. One of these
factors is market research; how well will your product or service perform in
the market? Often overlooked due to costs, time, and significance, market
research can make or break any business idea.
We want your business venture to start off in a way that will
encourage growth. As such, we’ve outlined our top three reasons why market research
should be on your priority list.
Market
research reaffirms your business idea
When you have a concept or idea and you
wish to convert it into a product or service, market research helps you
understand who your target audience is, whether there is indeed a demand or
interest in your product, and ultimately your business’ success potential. For
example, if you anticipate your target audience to be young adults between the
ages of 18 and 27, but upon reviewing the data from your surveys and focus groups
you notice that middle-aged persons express a greater benefit from the product,
you may need to redesign your business model taking into account middle-aged
individuals. On the other hand, you
might also find that there is absolutely no interest whatsoever and your
investment may not be worth it. Market research is simply a strong editing tool
that can refine your business to properly meet the needs of your consumers.
Knowing
your numbers
Numbers are vital to a business. How much
will you pay? How much will your consumers pay?
Are you competitive enough? Market research assists in money management.
If you understand who your ideal consumer is, you can further assess how much
they are willing to pay for your product. Additionally, it will gauge how much
money you need to invest to obtain a beneficial return. Research will highlight
the monetary relationship between the business and the consumer. If your
intended audience is women, but they are from low-income brackets, you must
consider the likelihood that they will impact your business financially,
particularly in a way that will encourage steady growth.
Further, market
research, in the form of business-to-business comparison, can help you
determine whether your prices are too high or too low and how competitive you
will be among your entrepreneurial peers. This research can often be obtained
by simple web searches and do not require much time. It is an easy way to gain
some perspective on your business.
Business
and Market Predictability
Market research can reveal how your
business will perform in its initial stages as well as the future. Granted,
there are a myriad of factors that can cause predictions to deviate, it is
still a reliable tool for estimates on what to expect. The research can guide
contingency plans and business projections.
Whether you decide to limit your research
to the web or other minimal resources or you choose to spend thousands of
dollars in quantitative and qualitative data collection, market research will
have a positive effective on your entrepreneurial pursuits.
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