Once in our lifetime we all have scribbled our start up ideas on some waste piece of paper. And that’s where the start up journey begins. Some end up into unicorns whereas others are failures. What determines success of a startup? How to predetermine the future of our start up? Often, would-be entrepreneurs are so fascinated by their ideas—those moments when they anticipate the possibilities of a certain concept—that they overlook the importance of determining whether the idea is viable. In this situation Market Research for Startup
As a result, market research for startup can be quite useful in establishing the viability of your concept. Industry associations, Web searches, journals, federal and state agencies, and other sources of information are all good places to start. A dive into information or a few hours spent online might help you gain a better understanding of your market. Your goal is to get a general idea of the type of customer your product or service will appeal to, or at the very least be willing to learn during the research process.
- What is Market Research?
- 7 Importance of Market Research for Startups Ideas
- How to do Market Research for a Startup Idea?
What is Market Research?
Market research is a process to collect knowledge on target audience and customers, starting with their basic information. It’s an important element of a company’s strategy and a vital role in remaining competitive. Market research may help you identify and analyze market demands, market size, and competition. Its methods include both qualitative and quantitative techniques, including focus groups, in-depth surveys, and fieldwork, as well as customer surveys and secondary data analysis.
It is the systematic gathering and analysis of information about persons or organizations utilizing data and quantitative methods and techniques of the natural and social sciences to acquire insight or enhance decision-making. It encompasses social and opinion research.
7 Importance of Market Research for Startups Ideas
Market Research for startup is utmost crucial. It’s easy to become blinded by the possibilities of your fantastic startup idea. It may, however, quickly fail if not thoroughly investigated. Conducting market research for startup can and should teach you a lot about your product. Startups should gather as much specific information about their target market as soon as possible.
In order to attract investors, it is necessary to do market research for startup. They’ll feel more at ease if you can show them information that says you’re quite likely to make a lot of money. As an entrepreneur, it also indicates your level of dedication and effort. Demonstrating that you take your pitch seriously can help you when it comes time to pitch. Below we have specifically mentioned some noteworthy significance of market research for startup ideas-
1. Validating your Idea
Of course, a company idea can arrive out of nowhere. However, an increasing number of experts agree that researching potential consumers’ problems is the best method to develop a truly viable proposal.
You might begin by deciding on the industry in which you want to work. You might be professionally interested in that field, or you might be drawn to it because of its novelty. The following step is to go into the details, i.e. research potential clients’ problems and requirements. The major goal here is to figure out what their problems are and how to remedy them with the help of market research for startup ideas.
2. Point your Audience
It is not true that if you create something and market it aggressively enough, people will eventually buy it. At the very least, not in sufficient numbers, and not at the price required to break even.
There are possibilities that if you select a different target group, the product you’re creating would be in huge demand. Timing is frequently a significant factor. That doesn’t rule out the possibility of creating something unique; all you have to do is make sure you have a market for your product or service.
3. Check out for Competitors
To continue studying market circumstances, you must first understand your competition. Make a list of your segment’s main competitors. Outline their advantages and disadvantages. Once you’ve discovered them, you can use the knowledge to map your startup’s advantages and market position. And this is where Market research for startup plays a heroic role.
4. To convince your Investors with rock hard data
Market study, according to experts, is critical at the very beginning of the business process. The most common faults in investor presentations are a limited awareness of the business environment or a lack of facts about competitive advantages. So, if you want to attract an investor, you should focus on market research during the development of your business plan. The information you receive should be current, informative, and correct.
5. For understanding product development
A start-up should ideally opt to question the outcomes of their primary research in their goods development stage once the proposed project has been validated through market research for startup. They can do this by conducting qualitative surveys or using other research marketing techniques at various stages of product development to ensure that they are addressing the wants and demands of their potential customers.
6. Understand when and where to Launch
The key to a fantastic launch is identifying the correct moment to debut and targeting the right people at the right places, which is only feasible with data gathered through market research for startup ideas. Including a good marketing strategy will not only increase product visibility, but will also aid in battling any competition that may jeopardize its market growth.
7. Know who can Assist
Integrating market research for startup with the expertise of an inbound marketing agency can assist you in improving your communication strategies. An inbound marketing agency can integrate the insights from your market research for startup with the most effective marketing and sales methods to produce outcomes, from content development to social media management. An agency can only properly advertise your business if it has a thorough understanding of your target demographic.
Market Research for startup is important at every stage of a product’s lifecycle: before it is conceived, during development, and after it is marketed. Market research is an important starting point for us, even though our strategy develops and adapts as we progress through the product life cycle.
How to do Market Research for a Startup Idea?
1. Study the types of Market Research
When it comes to defining revenue goals, picking the correct research approach can make all the difference. Let’s look at two different types of market research for startup based on your company’s objectives.
Market research for startup is classified into two types: primary and secondary. They are also known as field and desk research, respectively.
- Primary Market Research-
Any information you acquire yourself (or pay someone/organization to collect) is considered primary market research. It all comes down to looking at present sales numbers, data, and customers. It also considers the efficiency of present corporate operations as well as the competition.
- Secondary Market Research-
Secondary research focuses on data that has previously been prepared by others. It frequently includes reports and research from other corporations, government agencies, and other industry participants.
2. Identify the purpose behind your Research
You’ll realize where you have knowledge gaps after your initial exploratory primary or secondary research. What about the market is unclear? What assumptions about your prospective customers must be confirmed?
You may already have an idea of what you want to discover from your market research for startup. However, you’ll need to set certain study objectives to gather the most useful data. Market research objectives can be divided into several groups. This will also assist you in assigning the appropriate individuals to the appropriate duties.
3. Who to target?
You must first comprehend your target audience in order to conduct fruitful market research for startup ideas. Do you want to appeal to single parents, young readers, or people who own cars? Determine who will profit from your product.
You’ll need to recruit subjects if you’re doing primary research. This can be accomplished in a variety of ways, including word of mouth, social media promotion, or hiring a third-party market research firm.
Some organizations offer entire market research services, including participant recruitment and research. One such tested organization in the market , providing top notch market research service at an affordable cost is Fynzo.
4. Asking on point questions
A good survey should be simple to use, concise, and collect as many completed responses from a sample or demographic that would aid in the market research study as possible. Using technical jargon in the survey may lead the respondent to believe that the survey isn’t for them, forcing them to abandon it. The usage of terms that the intended respondent population will recognize is crucial to the survey’s success. Do not ask any biased or dishonest questions in a survey. A survey must cover a range of factors to be considered relevant.
Might look a lot of task and confusing too. Right? Need not worry, we have got you covered. Check out Surveykshan to ease your work and make your surveys effective.
5. Choosing the Right Tool
Do you want to learn how to conduct online market research for a startup and how it works in practice? Here are some handy tools to help you do your analysis effectively: Fynzo, Similarweb, Google Keyword Planner, Ahrefs, SEMrush, or Ubersuggest are some of the tools available.
You can gain business insights through a variety of ways, tools, and tricks. It all depends on your goals for performing market research, as well as your time and financial resources.
6. Make right Decisions
It’s time to make a plan of action after you’ve completed your market research and answered all of the questions from step one. Hopefully, you discovered that entering the market is a fantastic idea, even if you need to alter your ideas a little. Market research should serve as the foundation for all subsequent judgments.
Before entering a new market, it is vital to conduct extensive study. To market research for a startup, you’ll need to invest both time and money. As a result, it’s critical to ensure that the information gathered may be used in your project. Startup research should always be based on official data that reflects the real-world scenario rather than someone’s fantasy. Any investor will almost certainly inquire about the data’s sources. In any case, there may be unforeseen twists and turns on the path to starting a business. However, thorough analysis will aid you in anticipating and resolving obstacles that may impede you from progressing to the next level.