Why perform MARKET RESEARCH?
Sometimes a great idea just feels right! Some of us are so in tune with our gut feelings, that we feel justified to move in a certain direction without looking into it further. But, a good saying to remember when making big business decisions is this: “trust, but verify”... All to avoid over-investing in the wrong direction, which saves you precious time & money!
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Before I dive into this topic, I want to let you know that Episode 4 of the Start Up Heart Up Podcast goes over how to perform basic market research for your small business.
Listen on Apple Podcasts
Listen on Spotify
Or search for the Start Up Heart Up podcast with Kae Gruner on your podcast platform!
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To back up a little bit, in my career I have practiced patent law, business law, and worked in an area called “technology transfer”. At the heart of technology transfer is the question, will a new product idea be successful in the market? If you can answer that question affirmatively, then you will be justified to spend the investment resources needed to build a minimum viable product and launch the product or new business. Most of my legal & tech transfer has been for the benefit of relatively big organizations and companies.
However, my heart is with the little guys, aka the everyday entrepreneurs & small business owners! For you, the everyday entrepreneur, I’ve come up with a list 9 Key Business Launch Milestones to get your dream hustle from bright idea to business launch, one of which is the topic today: Market Research.
To give you some context before I jump in, here are the 9 milestones:
1. Mindful Ideation
2. Market Research
3. Product Development
4. Pitch Perfection
5. Intellectual Property
6. Legal Protection
7. Brand Creation
8. Marketing Strategy
9. Launch Party!
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Let’s get to it! To start performing basic market research on your new business ideas, answer each of the following questions:
Ask questions about your industry & niche.
Is your industry well-established, crowded, new, niche, etc?
Which best describes the market potential of this industry? Is the market growing or stagnant? If growing, how rapidly?
How risky is this industry? Is it regulated (food, cosmetics, alcohol, etc)? Is it potentially dangerous? Or is it generally free of risk & liabilities?
What best describes your ideal customers? Be as detailed as possible!
Ask questions about your product & business idea.
How different is your business idea from existing competitors' solutions?
How time-consuming & expensive will it be to produce or create your products? Do you need to buy inventory or lease space before you can launch the business?
As questions about you as an entrepreneur.
What experience do you have as an entrepreneur?
What best describes your personal/professional skill level? Do you have any of the following skills? Management, Business Development, Finance/Numbers, Legal/Risk Analysis, Sales, Operations, Marketing?
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Taking basic steps like answering each of these questions can help you feel confident about pursuing new business and product ideas! Not only can you learn about the market potential of your business idea, but you can learn about your own personal success potential as a new business owner. Both are critically important in order to avoid being part of the 80% of small businesses that fail within the first 5 years. Here’s to claiming your spot in the 20% that succeed, baby!
If you have an exciting new business idea, and you’re wondering if it’s commercially viable, take the New Biz Quiz to find out!
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