One of the first steps to starting and maintaining a successful business is investing in market research. Ideally you will have already done this before writing a business plan or investing in a website. If you haven’t done this yet, we’re here to help you out!
Importance of Researching Your Market
Doing due diligence before investing your time and money into an idea or business venture will pay off many times over. Some of the ways you might use research information:
- evaluate industry trends and opportunities
- assess competitors
- assess viability of starting or expanding a business
- analyze relevant current market conditions
- figure out how large your potential market, (customers), is
- identify how your market is growing and expanding
- create a business plan to secure funding
- create an internal strategic plan
- find potential suppliers
- find strategic partners
- seek to understand what the potential for profit/growth is within your market
If you consistently keep an eye on your target market you can gain good insights into their needs. Other ways to research your market is to run your own surveys and polls. By asking specific questions you can identify all types of information about your market. This includes their needs, their problems and more.
It may be helpful to use a source such as the U.S. Census Bureau. This is a great way to identify demographics in certain categories. You can search by age, income, number of children and more.
Using psychographics in your market research can give you additional and important information.
Demographics explain “who” your buyer is, while psychographics explain “why” they buy.”¹
Once you have a good understanding of who your target market is, it will be much easier to see how large your market is. Then, you can identify the type of profit potential this market has for your business.
With technology exponentially influencing and changing business, it’s more important than ever to keep up-to-date with market trends and stay agile.
¹ Meredith, Alisa. “How to Use Psychographics in Your Marketing: A Beginner’s Guide.” HubSpot Blog, Hubspot, 26 Dec. 2013, blog.hubspot.com/insiders/marketing-psychographics. Updated October 18th, 2017