Most people avoid doing market research. For some reason they would rather start the intended business without sufficient information, then try to fix it as time goes by. That just takes time and effort away from actually running the business, and is something like changing the wheel of a car as it is being driven along.
Market research can be a simple, inexpensive exercise that provides specific information that results in a business that is best placed to make a profit from Day 1. What follows is a description of what to do and how to do it, and a template for you to use.
Begin by compiling a list of around 50 people who you might ask for an opinion, then from that list identify around 20 whose opinion you value more, then from that list around a half dozen whose opinion you really value and who you feel are predisposed to assist you.
Next, develop your story. This story is the tale of the business that you are thinking of starting, and that you would appreciate if they would read your proposal and give you some feedback on it.
Tell them why you think it is a good idea to start the business, what unsolved problem you identified and how you intend to solve it.
Ask them not to mention the idea, since you may not continue if you get negative feedback, and then ask specific questions designed to get at the information you really want.
Also ask them if you can add their comments and then send it back to them for further comment.
Now that you have composed your letter, send it to the group of around a half dozen. Wait until you have their feedback, then make whatever changes you think are necessary – either in the business model or in the market research letter itself, or both – and then send that out to the group of 20.
Repeat the exercise, making whatever changes you believe are required, and then send it out to the full group you identified.
When you have all that feedback collated and understood you will be able to make a reasoned decision about going into that business.
You will know if other people share your opinion that there is a requirement for that new business, you will know what they believe is important, and you will know what to say when you start to market the business. That’s a far better position than just starting the business and hoping that it is in the right place, with the right product at the right price.
What follows is a template that you can use, and an example letter created for an Accountant who wanted to offer their fellow Accountants some sub-contract services.
If you have any questions please just go to the Member’s Forum and let us know what is on your mind. Remember to search for your question first, we may have already answered it, and that will get you back up and running almost immediately.Tags: Business Model, Driven, Exercise, Market Research, Negative Feedback, People, Proposal, Reason, Research Letter, Unsolved Problem, Wheel