Market Research is an important tool for anyone wanting to start a new venture or grow their existing one. It involves scientific studies to gather necessary market data, helping entrepreneurs make informed choices when planning their ventures.
Unfortunately, the research suggests that most startups aren’t doing enough market research. It is actually an essential part of the business start-up phase but many entrepreneurs don’t do it – not least because of the perceived costs. Research helps determine the feasibility of a venture and it’s a good place to test out new ideas.
Read: low-cost ways to promote your business
5 Steps to Do Market Research for Small Business Owners
1. Check your Budget
Small business owners usually start and run their businesses from a shoestring budget. You need to check your finances first before planning your marketing strategy.
2. Use Free Online Resources
There are lots of websites out there on the web in almost any industry in just about every country. If you’re located in the US, check out the official Small Business Administration (SBA) site for some useful info.
You can also look at Google Trends, and Google Consumer Surveys to get an idea of what people are looking for and their needs.
3. Check Forum Sites
Try using sites like Quora, Reddit, etc., and check out their opinion pages. You can also ask questions there and see how the reader responds.
4. Conduct Small Surveys
As a small business person, you don’t need the minefields of data. Just create a small survey with some basic questions and distribute it to customers in your area.
Questions could include what product they are using, how happy they are with it, what extra features they would like to see, if cost is an important factor in purchasing a product, etc. If you can afford it, you can hire a market research firm to conduct the study.
5. Take Help from Existing Research
Once you’ve taken some time off, look for research into similar products or services that might be relevant to yours.
You could use magazines, trade publications, and even company reports to help inform your decision. If you’re able to afford them, consider using market analysis reports from reputable organizations.
Why Market Research Is Used in Business
Market researchers must conduct thorough market analysis before they start their business.
- Finalize an idea
- Make sure your project is credible (i.e., communication, pricing policies, etc.)
- Set up your environment for success
- Show them that you know what you’re talking about before they give you their money.
Online marketing has become an increasingly important part of the overall marketing mix. It allows marketers to collect valuable customer insights through surveys, focus groups, and one-on-one interviews.
What are the Benefits Of Market Research
Online market research allows both large and small organizations the chance to eliminate the cost of collecting data through traditional methods.
Why market research is important for business owners.
a) Identifying Prospects
b) Developing Strategy
If you’ve done your homework, you’ll know how to decide if you need to start, expand, consolidate, diversify, or reduce your activities.
c) Solve Business Problems
Research helps you figure out what needs to be done to solve the problem. For instance, if your company has seen a decline in its revenues, then you may want to investigate why that happened. Maybe your competition is eating into your market share, or perhaps your team members aren’t motivated enough.
e) Looking to Expand Business
As a small-scale entrepreneur, you must always seek out new ways to grow your company. Growth is not optional; it is a requirement. You cannot afford to ignore growth opportunities.
In order to do so would leave you vulnerable to competitors who may be willing to take advantage of any holes in your strategy. Therefore, you must constantly assess your current situation and make changes where needed. One area that you might consider exploring is opening a new retail outlet.
Retail stores can provide additional revenue streams for your company. However, they also require careful planning and execution. So before you dive into a new venture, you need to conduct a thorough market analysis.
f) Identifying New Business
Researching your industry could help you discover new markets for your products or services. It might also reveal new ways of doing things, revealing changes in consumer habits or preferences.
In order to make the best use of your marketing budget, you should conduct a thorough analysis before spending any money. You can start by analyzing what type of customers are visiting your website.
Are they buying products? What about services? Once you know who your target audience is, you’ll be able to determine how much effort you need to put into your marketing campaign.
For example, if you sell products, you might want to focus on direct mail campaigns. On the other hand, if you’re selling services, you might want to invest in SEO (search engine optimization).
However, even though it plays an important part in the decision-making process, it doesn’t give you a complete picture of the current situation.
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