Conducting effective market research has always been an essential part of business start-up, development, and growth, but these days it’s even more so. It’s hard to deny that the pace of business has been turned up several notches. There is this unspoken rush to get from concept to market in lightning speed (i.e. before anyone else does or anything changes). Moreover, countless young entrepreneurs and their Icarus moments are often being turned into public spectacles, heavily glorified and even praised by the media.
The high stakes business crash and burn is has become a badge of honor.
In short, a kind of recklessness has emerged in the business world, and at the risk of sounding like a parent, it’s not the most positive of influences.
If you really want to get your new business idea off on the right foot- whether this idea is for a start-up or an established business- you’ve got to put in the time and the effort to be very clear about the current market demand and conditions.
Often, you don’t have to spend much money on this process. Here are five quick things that you can do to test out the efficacy of a new idea:
1. Get on the phone. Call up a few potential customers, the ones that best fit your ideal customer profile, and ask them if they would be interested in your product or service. This is a good way to initially gauge demand.
2. Get on social media…for research. Social media platforms are a great source of information and market research. Many of these platforms have their own built-in search functions that will help you to spot certain trends. Just a note here: don’t just focus on the trends themselves, but also pay attention to how people and businesses talk about them. What words and phrases keep coming up? What is the tone behind it?
3. Test with content. One relatively easy way to test the market waters is to create a piece of content that touches on the problem you are trying to solve and hints to the solution. You then need to post it in a place where many of your potential customers will see it and wait to see what the response is. If it generates a lot of activity and engagement from people then it’s a good sign that you are on to something.
4. Snoop out your competition. What is your closest competition doing in these space? What is working and what isn’t? What are customers’ reactions?
5. See what already works. Even if another company is not operating in your niche, you may be able to draw on their successful marketing, promotional strategies, and even products and services as examples of what you can do in your own company. Just make sure that there is some overlap in the target market.
In short, good market research is and always will be an important foundation in any business, and these days it doesn’t require a major drain on resources to do it properly. So, do yourself a favor, and don’t jump the gun in the implementation of a new business idea. Take the time and make the effort to ensure that you’ll have a profitable customer-base waiting for you at the finish line.