Every business has to start somewhere - that’s where the term startup comes from. However, market research can be tricky for the unassuming founder or innovator. With that in mind, what can founders do to better research their market and niche? This article covers some crucial must-do’s.
Accept Market Research as a Necessity
Without market research, startups are doomed to fail. Did you know that over two-fifths of ventures fold because demand doesn’t exist? It is easy to assume that just because a product is innovative or new, that it will be lapped up.
If the market doesn’t want your product, then you are left swimming. This is where venture founders will either need to pivot or fold up. Moreover, it is not always so easy to tell what the ‘next big thing’ will be!
That is why market research in the modern age is so necessary. It is, effectively, cushioning your company against potential blowback. Market research can involve looking closely at sales history, social trends, or analyzing your rivals. Providing market research takes place, companies can be sure they are doing their best.
Understand Your Customer and Location
A critical failure for some businesses is struggling to understand their customers. Even larger brands and firms have difficulties in this regard. Successful firms and brands tap into customer needs and actively connect with them.
Thorough market research will tell you more about your customer’s average profile. Which customer segment is likely to invest in your product or service the most? Do you know where they live? What about the size of your demographic - is it likely to shrink or expand?
With these basics, founders can then develop more strategic insights. For example, it may be worth considering translation services if a product is globally appealing. Furthermore, it is worth considering being selective with social platforms depending on the age demographics a company is pitching to. Is the ideal audience likely to respond to TikTok videos when they spend most of their time on LinkedIn?
Use Databases to Your Advantage
Above all, venture founders should consider embracing data rather than ‘putting up’ with it. While data sets precedence, it is still instrumental in helping us to understand customer and market behavior. By using a venture or market database, firm owners can get a broader idea of who they are pitching to.
Real-time data, such as that available through Fundz - can help keep founders and investors up to speed. This data is as ‘live’ as it is going to get. Therefore, any decisions made can be considered low-risk. However, the exact data you choose, and use, will vary depending on your goals.
If you are in the process of researching your market, be sure to try Fundz’ database for widespread data and analysis. Market research is your friend, not your foe!