A lot of new business owners discard the necessity of market research. This is typical because when an individual thinks up a business idea, the first thing is how the sale of the commodity or service will be facilitated. Hence, performing adequate market research typically ranks last on the business owner’s priorities list.
However, for all types of startups across all industries, market research is crucial. Whether your business is a conventional coffee shop or a binary options website, you still need to conduct market research.
It is particularly needed for small businesses because the continuity of a small-sized business might rely on the performance of the first couple of months. Every new business requires three key things. The first is the revenue from sales, and the second is the introduction of new customers. As time progresses, the third factor becomes the transition of new customers to regular ones.
What Is Market Research?
Market research encompasses a variety of methods utilized to understand a business’s customers. Some of the most frequently used techniques include surveys and questionnaires. Nevertheless, there are other market research methods like holding conversations with customers.
Having conversations with your target audience can help boost your market research. For instance, if you’re looking to offer videography services at events, you can connect with your friends who are event planners.
You could also network with your acquaintances that have hired videographers at a wedding or party event to find out how they found the professionals.
Another method is to explore social media groups. This is one of the low-cost and least stressful methods because it can be facilitated with your smartphone. If you can connect with a Facebook or LinkedIn group that has a link to your target market, you can quiz them. If you become a frequent conversationalist in the group, you could post about your new business.
Key Benefits of Market Research to a Business
Helps a Business in Navigating a New Market
The term ‘knowledge is power’ extends to the business world. When you conduct market research, you gain knowledge of the industry you want to venture into. This way, you either get on par with or gain an edge over your competition.
Allows You to Spot Prospects and Dangers
Whether you conduct social media research or take surveys or questionnaires, you’d be able to spot prospects and dangers in the field. If you’re new to the market, prospects become advantageous because you could tailor your business to satisfy those needs.
In the same vein, spotting dangers could help you get past potential limitations that can restrict you.
Uncover Weaknesses and Strengths
Uncovering weaknesses and strengths with market research can be split into that of your business and your competitors’. Discovering your weakness comes about when you engage a market research agency to perform an independent study. If you can improve on those weaknesses and retain customers, you’d gain an edge over your rivals.
On the other hand, discovering your competitors’ weaknesses will allow you to capitalize on them to invite new customers. Customers are very mobile and change loyalties when they’re offered better services. Improving on all fronts will allow you to be at the forefront of the industry.
Lessening Business Risk
According to statistics, new businesses are highly likely to close down before they clock six years due to business risk. Businesses that last for more than six years have something in common — a consistent inflow of customers and revenue.
To facilitate this, you’ll need proper market research. Market research ensures that you’re never out of touch with your customers’ needs. You can ask the opinions of some of your customers about a change you want to implement.
This in itself creates a double effect. Apart from getting honest opinions, your customers will feel valued that they’re getting consulted on crucial business issues.
Conclusion
Entrepreneurs often forget that they need to conduct market research. Market research involves getting reports from customers about a certain type of business. Researching your potential or active market is crucial because it helps you lessen business risk and uncover strengths and weaknesses.
It is also beneficial because it helps you navigate a new market more efficiently and spot dangers and opportunities more easily.
