It’s easier than you might think to have a good idea. But it’s harder than you think to make it work. For startup companies, it’s the execution of the vision that’s the difficult part of their business plan, not coming up with the vision itself. Solid market research, however, can help these fledgling businesses understand the market and, thus, negate some of the potential obstacles to a successful start. Take a look at five common problems startups face and how market research can solve them:
Frequently, businesses don’t have enough capital to produce the cash flow they need to get off the ground. Market research for startups, particularly secondary source material such as trade journals, association member lists and governmental reports, can help entrepreneurs identify the people and organizations within their communities that might possess either the intellectual or financial capital they need to create and fund a successful business strategy.
Identifying and Reaching Consumers
Undoubtedly, businesses need to recognize and respond to the people most in need of the product or service they offer. In the majority of situations, such information is neither readily apparent nor even easily assumed. If you combine this knowledge with the fact that quite often the most valuable consumers are not the ones with the most initial purchasing power, but instead are those with the most purchasing potential, it becomes especially obvious that only the companies who research consumers can fully understand what people need and how to get it to them. For example, after using market research for startups, a food company might realize that their product popularity will vary by location. Then can then take steps to market to those areas separately, focusing on the locations with the most people and bypassing a mass approach that might not yield as profitable results.
Determining Product Price
Picking the perfect product price is a task that plagues all companies, startups and established businesses alike. It’s hard to know how much consumers will spend, as well as how they view product price in relation to other purchasing factors, without asking them directly. Using market research in the startup phase to gauge consumer price sensitivity can lead companies to price their products appropriately from the start, thereby saving them money in the end.
Spotting the Competition
Startups face inevitable competition. Market research can help new businesses identify and analyze the players within their industry before they even enter the game, giving them a distinct advantage. Understanding what other companies do well, as well as what they don’t, helps startups create proactive strategies rather than reactive ones.
It’s one thing to work in the here and now. It’s another to work toward the future. Market research for startups provides quantifiable data that can help determine the current status of the market and predict where it might go, both necessary facts for positioning companies for the greatest potential for success.
Ready to Learn More?
Starting a company can be an exciting and scary time. Don’t be afraid to ask for help. Our team at Communications for Research (CFR) has over 20 years experience providing quality market research for startups that yields reliable and actionable results. Safeguard and even maximize your ROI by contacting us for a free quote.