Thinking of opening your own business? Many are forming their own company these days. You'll want to out-do your competition from the very start So, how to do market research for a startup? Here are three essential steps to begin...
3 Necessary First Steps Of Market Research Analysis For A Startup
Testing a business idea before you fully hit the market is the difference between success and failure. It gives you a clear idea of the potential market, and whether or not you’ve got a product people will buy.
Post-pandemic there is an increasing number of people starting their own home businesses and using Ecommerce to sell their products and services. You must understand what that entails before you launch and understand the required budget to make it all happen.
Questions this article answers:
- Where do I start with research to test my awesome business idea?
- What details am I looking for during this phase?
Here's how to perform introductory market research to test your awesome business idea ... your three first steps.
Get Customers Involved Early
Before you officially launch and start selling to people, do a test with a select handful of potential customers. In doing so, you’ll be able to narrow down your:
- Product development needs
- Marketing strategy
- Customer pain points
All in the interest of customer satisfaction.
To do this, identify your target markets. Do the usual market research, and then put together a carefully curated focus group. You want to target the spectrum of your target audience according to demographics like:
- Age
- Gender
- Location
You may even need to run a few focus groups at a time.
In turn, you have insights and feedback from the very people you need approval from most.
Prototype The Website
It might seem tedious, but it will be worth "building" a website prototype. This will help you to decide on a final design and build, and pinpoint the most important architecture and features. Then, you don't risk turning away any customers due to design.
Prototyping can even save you money. You can learn about how to run a headless commerce website, which usually wouldn’t be something you would do this early on. But with modern in-depth analysis, it’s easier than ever to determine what’s needed, what's wanted, and what you could do without.
- Take your time here
- Use dependable website builders
- Move on to hire web developers to build a customized website that really works for your brand
Iron out the basics from the beginning and your website development journey can be cut in half.
Market Research Priority Number One: Figure Out Your Niche
Finally, it’s time to delve into your competitors’ movements. Of your market research tools, this will be the most important.
- Who are they are?
- How many are there?
- What do they do that you don’t?
This will help you to put your ideal business plan together and develop a stellar marketing strategy. Prioritize finding the gap in the market that your company can fulfill.
How can you effectively research a competitor?
- Shop them
- Check out their social media
- Network with the founders
There’s a lot you can do on social networks from behind a computer screen. Even better if you meet people in-person.
Also spend time reviewing the reviews of your competitors' previous customers. 84% of people trust online reviews as much as peer recommendations.
You could also gain more detailed feedback from surveys of the test market group mentioned above.
Final Thoughts On Marketing Research For Startups
Testing your business idea will help every phase of your business growth go more smoothly. Be sure where you stand before you file paperwork and eventually launch. You're forming a brand and brand story ... Your business legacy. It's worth the time investment.
BONUS: Using the above steps will result in a market research template for you to use in developing new products and services in the future (so take decent notes).
