One of the biggest challenges that startups face today is operating a business in the present scenario and attaining sustainability in the long run.
If you have started your new business startup, you will face stiff competition. However, the biggest threat to a business organization is sustenance.
According to a survey, around 55% of businesses fail within the first five years. These crude strategies imply threat.
Under the circumstances, the aphrodisiac that can save their day is market research. It accumulates critical details about consumers, competition, and the industry. But most startups become overwhelmed with it. They are allergic to it and refrain from taking the initiative due to its extensiveness and expenditure.
Are you operating your business and feeling the threats to existence?
It’s quite normal for you in the competitive landscape. There is a way out, and you must swallow the bitter pill— no escape route. Conduct market research. In this article, we discuss how to do market research for a startup company, so stay until the end.
So What Is Market Research?
This introductory section is inalienable to understanding how to do market research for a startup.
Market research is a process of procuring data about customers and the market. It helps determine the viability of products and services. The extensive process includes interviews, surveys, and focus groups. For example if you wish to find new business ideas for students, you need new marketing tips for new businesses.
You can say that the ultimate objective of market research is to understand the customers’ changing tastes and priorities. Hence apart from accounting for startups, you also need to to look for successful market study.
Market research is of two types, they include:
- Primary research
- Secondary research
Whereas primary research requires procuring data to learn about the specific customers or the entire target market.
Secondary research, on the other hand, collects data through self-initiative. You can use public databases, industry reports, and company property data. It help us gain insights into the market segment and the industry at large.
For implementation, you may have to look for case studies, market study analyses, and examples of market research.
This is why the majority of new entrepreneurs’ search” how to do market research for a startup business” on the internet.
Why Is Market Research Important For Entrepreneurs?
Be it business, sports, family, or any field, if you do not introspect and retrospect, you may not find where you were wrong. If you are looking to start your new business, you must focus on business growth marketing strategies. There is no shortcut to analytics.
However, market research helps you collect market data by surveys. With market research, organizations can determine the pricing strategies and understand if, or if not, the customers are willing to pay for your product. This is why budding businesses must thoroughly research how to do market research for a startup.
Conducting Market Research Is Key To Attracting Investors
If you want to impress the investors, you must carry out market research. Remember, the investors are investing their hard-earned money. They would think many times and look at the proactiveness of the business.
This is why market research is undertaken with the utmost religiosity. It has become an industry today.
You will be shocked to know that the worldwide market research industry generated 84.3 billion U.S. dollars in 2023. Now, only the USA accounts for 53% of the global market share industry. These figures underscore the need to carry out market research.
It Saves The Business From A Great Fall
Different studies attribute inadequate market research as being one of the reasons that an organization fails. Lack of a successful market study is one of them. Let’s give one here. A CNBC insight says that business fails due to diverse reasons, and the key points include;
- Poor product. (8%)
- Pricing Cost issues (19%)
- No market need (35%).
If you examine the points closely, you will quickly understand that the three points are related to inadequate market research. Hence, business needs to find the answer to the question, “How to do market research for a startup,” to see the path to redemption.
Market Research Helps You Test Your Ideas
There are several things you will discover if you engage in market research. Out of the questions, you will first find out the answer to the question, “Is there adequate demand for the product in the market?”
First and foremost, your product must meet the customers’ requirements. In addition, they must stand on the pedestal of efficiency.
If you think of a project, then your idea must be implemented. However, the idea must be shaped by market research.
Hence, you must understand your requirements by extracting data from the organization and creating your new product and service idea. Also, you must constantly look for ideas and know how to do market research for a startup to shape your planning.
Top Market Research Companies In The USA
We already mentioned above that market research has become an industry. This is why hundreds and thousands of startups continuously look to find the answer to how to do market research for a startup.
According to a survey, 20% of global spending is on customer research surveys and CRMs. Moreover, 23% of the organizations do not have a clear research strategy. However, different global market research consultants can work with you. We will name them in this section.
Nielsen
Nielson is one of the topmost market research organizations which has extracted around 5.24 USD revenue in the year 2021. It has helped the organization secure its place in the industry.
Attest
It is one of the topmost market research organizations in the USA. The organization can collect data from 125 million respondents from 59 countries.
Now, you can understand the depth and market reach of the organizations. This expansion and stretches have helped the company attain a higher position in the competitive market.
Bixa
Another brand that deserves a name in this realm is Bixa. It is one of the topmost market research organizations and consulting firms.
Startups who are constantly looking to find an answer to the problem of how to do market research for a startup can get their answers with Bixa. The organization is an expert in:
- Customer surveys.
- Hyper profitable targeting.
- In-depth interviews.
- Usability testing.
Steps To Conduct Market Research
We have come to the main section of our discussion, which is knowing the tips for market research.
Usually, a startup conducts market research on its own or with the help of third-party organizations with expertise in the trade.
However, if you want to know how to do market research for a startup business, you can follow some of the steps discussed below.
Step 1: Define The Purpose Of The Research
The first step in market research is to pinpoint the questions whose answers you wish to find with the help of the research.
You can develop results that will unveil the ultimate objective of your efforts. Here are examples of some of the market research purposes.
Firstly, with the help of market research, you can determine the consumer’s spending on a product and service. Secondly, you can track and predict the most relevant industry trends.
Step 2: Study Your Target Markets And The Competitors Closely
Market research enables you to find out your target market. Moreover, with this engagement, you can grow your knowledge base about the different market factors in advance. The study will determine the relevance of your research.
Step 3: Forming Hypothesis
You must find the questions to get an answer to with the help of market research. Using the questions, you can form your own predictions, called Hypotheses. This is the approach used to do market research for a startup business.
However, let’s take an example. For instance, your question is, “How much money does the general buyers are willing to pay for the services?”
The Hypothesis can be, “If the consumers are getting the feature that is available on the competitor’s products, and that too with a lower price, they will definitely go for the product, that’s for sure.”
Step 4: Identifying The Target Demographics
You need to understand who you are and who your target demographics could be. The pathway to getting an answer to how to do market research for a startup business leads through the very point.
Yes, you must pinpoint the type of individuals your prospective buyers are. You can do this through primary research, and approaches to it include:
promoting the study on social media
word of mouth
hiring third-party market research organizations, and more.
Step 5: Conduct Research
Now that you have developed your target audience, it’s time to conduct the research. It’s apparent that you will have biases.
Your primary work would be to reduce them. You must enlist someone unfamiliar with your hypothesis for the interviews or the focus groups.
Ask them questions to prove or disapprove of the Hypothesis. Moreover, to craft unbiased questions, you must use neutral language.
Finally, Gathering And Determining The Actions
Now that you have extracted and organized your data, you must thoroughly study market analysis to extract actionable insights.
When you have finished analyzing the data and emerging then, you can then outline your products and services.
We hope you benefit from the discussion and start with your market research initiative. Hence, following these steps is the answer to how to do market research for a startup business.
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