How to carry out a good market study for entrepreneurs

We live in a very competitive society and world where we increasingly need more and better tools to reach our goals and distinguish ourselves.

Entrepreneurship is not easy at all and, at the time of doing it, many doubts and uncertainties arise about what is the path to follow so as not to fail. But of course, there are no right or wrong paths, but there are experiences of mistakes and successes that can inspire us to define a course as clear as possible.

That is why, in this post, we will give you some tools and tips to carry out a good market study for your venture and thus be able to minimize the risks of any startup, or improve your venture that you already have set up.

What is a market study?

A market study is an investigation that will allow you to know if your business will be profitable, mainly by anticipating the response that the public will have to the product or service that you will offer. This research is based on the current market and the collection of data from potential clients and the sector to which you will apply in general, for example, studying the competition and the regulations of the sector to which you apply, among other relevant data.

It will allow you to define your steps to follow so that your venture is viable and successful without the need to invest a lot of money if you do not have it, since there are reliable methods that you can do yourself, without the need to hire a professional.

Why a market study and what is it for?

It is true that you can also start your business without a previous study, but the reality is that, like any startup, it has its risks and starting with market research before launching will lead you to be less likely to fail and will mark the way forward for you. a clearer and less risky way .

From the market study you will be able to:

• • Evaluate how viable and profitable your proposal is in the current market and if it needs modifications to maximize good results.

• • Know the profile of your potential client so that you can then adapt your marketing strategies and your product as best as possible.

• • Know your competition and arm yourself with tools to stand out in the current market and not be at a disadvantage.

• • Discover new ideas to improve your product, based on what already exists in the market, based on already known results.

• Design a good Inbound Marketing strategy to start off on the right foot, attracting customers with quality content.

How do I do a market study?

In order to carry out a market study on your own, it is important to have a well-defined plan, which will prevent us from wasting time and make the most of our research. That is why we share with you some relevant steps that cannot be missing in your strategy.

Define a goal

It is essential, as a starting point, that we know why we are doing the research and what information we hope to obtain. To do this you have to know well who is the public to which you direct your product and know the current market available for the product.

Establish research questions

A good market study must have a survey that helps you meet your objective. To do this, you have to define what questions to ask, to which target you are going to direct them, and to the number of people, all with the aim of achieving a brief and specific survey. With these results we will be able to know the viability of the product we offer, if it is really good and our potential audience needs it. We will also be able to know what price they expect to pay for the product and we will get ideas to improve our initial plan. You can do a simple market study with online surveys, which you can generate with free software such as Google Forms or QuestionPro .

Research the competition

It is important to know what is available in the market and what directly competes with our product. For this you can analyze the social networks of the competition and see how they use them to promote their business. You can also analyze their marketing and advertising strategies, both on social networks and on other channels. If your competition has a physical store, you can visit it as a customer, see its prices and offers, its location, and see what type and number of customers it has. If you are in a sector that has great leading brands, be inspired by their methodologies, since they got to where they are for a reason.

Interview with experts on the subject

This resource is valuable and inexpensive. If your sector has experts in the trade of the product you want to sell, look for a way to obtain an interview with them, so that they can offer you their vision on the subject.

Define your target audience

It is important not to lose sight of the public that makes up the market we are targeting. Know the place where you will sell the product, the type of public, their economic and employment situation, their social environment. This will help you know if your business plan is on the right track and if your advertising and marketing strategies are correct for the audience you hope to have.

Know the legal regulations of the market

Get legal advice on everything that directly affects your business, this will allow you to know if you are well positioned and if you are able to meet all the requirements, without surprises once the business is set up.

Data collection and analysis

It only remains to collect the information we obtained through the different resources we use. Most survey platforms include the analysis of results through graphs and tables, but it is important that you thoroughly analyze all the results obtained and not only get general results, but also look for trends in them, which can be by age , genders, socioeconomic level, or any discovery that seems relevant to you.

Results

We recommend writing a detailed report with the conclusions and results that we obtained detailing the pros and cons of our undertaking, and what proposals we have to improve and continue with the business plan, as well as what action plan we have for the future with the necessary modifications depending on the results obtained. For example, it is essential to define in the report if we will maintain our target audience, if we will use the marketing strategies that we had in mind or if new ideas emerged during the investigation, the advertising channels that we will prioritize, among other things.

Conclution

All entrepreneurship carries risks, so planning and being careful when starting a business will always be a good path to success.

Not all entrepreneurs do market research, it may be due to ignorance or lack of money, but it is clear that a large investment of money is not necessary to do it, since it is possible to do your own market research with few tools and a little money. of time.

Although we fully trust our product, it is clear that this is not enough to ensure success. A bad marketing strategy and a lack of knowledge of our potential client and the competition can lead us down the wrong path.