Evaluating Your Business Idea - Market Research!
The first of many questions you will need to ask yourself, and the answer - Market Research!
Why do Market Research?
There are several very important reasons to carry out market research before launching your new business idea as follows:
- minimises risk
- helps you understand your potential customers and their needs
- finds out in advance likely reactions (positive and negative!) to your product or service
- can identify gaps in the market
- can let you know what price people will be willing to pay
- improves your chances of success!
What is Market Research?
There are two types of market research:
Primary Research - Information collected for you or by you through surveys/questionnaires and interviews.
Secondary Research - Information gathered for other purposes, such as government statistics (socio demographic – age, income level, interests, etc), trade publications.
Much of this information is freely available on line or by using some of your best free resources – interview friends, family and neighbours about your product or service. Also make best use of professional advice from business resources such as those provided by COLBEA.
How Do I Carry Out Market Research?
Market research can be extremely expensive, but it can also be done effectively if you do it properly yourself, even on a tight budget!
Again another question I’m afraid, but one of the most key questions that you need to ask yourself before starting your market research is - What is the aim of your research?
Once you know this you can go to the relevant primary and secondary resources and as the British Chambers of Commerce say “Once you've researched your audience, you can go from there. It depends on your target clients how you move forward.”
