The success of your company hinges on how well you research the market. A lot of startups make the mistake of thinking that they already know everything about their industry, but how can they? When a new startup emerges onto the scene, there’s no way to be sure how it will do in comparison to its competitors or how customers will respond. This is why doing market research for startups is so important.
Where to Start
That’s where you’re wrong. Market research doesn’t need to be painstakingly difficult, although it may seem that way. It just takes some knowledge of how the process works and how you can make it work for your startup.
When looking into how to do market research for a startup, one place where you might want to start is by developing a thorough understanding of what exactly market research entails. The more information you have about each step involved in market research, the easier it will become to see how they fit together as part of an overall system intended towards getting results.
The first thing on this list is deciding whether or not there has been enough interest from customers so far before doing further marketing efforts such as advertising. If you have a base of existing customers, how can you tell whether or not they are representative enough to be able to say with certainty that there is interest in the product? This may require you coming up with some kind of customer survey questionnaire.
The second step on how to do market research for a startup involves figuring out how much potential exists as far as growth goes beyond what your company currently has now. For example, if most people who use your website only come once and then never again, this would indicate that there isn’t really any more room for growth unless something changes about how those people interact with it. It’s important to understand which parts of the marketing campaign need attention so that further efforts will prove fruitful instead of possibly being wasted.
Analyzing the Market
First, how much research have you done so far to understand your market? Take some time and look at how long it’s been since that last update – is there any new data collected by other companies in this industry that may be useful to include as well? If no one else has conducted similar studies recently (or perhaps not even within the past year), then what information can you find from previously published reports or surveys about how people feel toward specific products or services like yours. What marketing efforts were most effective for those brands, and why might they work with your product too? Do these findings suggest anything different than your original assumptions regarding how best to position yourself for success?
Understanding Your Customers and Target Market
Primary sources are key to market research because they “are first-hand data collected directly from original respondents.” This means that the source (your customers) is giving you information straight up how it is, not how someone else interpreted or represented their words of views. Primary sources give you your best shot at understanding what drives target users when consuming content.
You can do this by creating customer personas, which will help you identify characteristics in potential customers with whom you would like to work most closely. Personas are basically a detailed profile of an imaginary user who represents your ideal client/customer base based on everything learned throughout your primary and secondary research.