Market Research before Business Startup

A business idea without proper market research will quickly fail in the early startup stage. Many entrepreneurs start their business either too rapidly by pushing their products out there without adequate market research or getting false information from potential customers.

I have the experience of starting a business without doing proper market research. It’s an action of impulsivity which is never a good attitude to do in my entrepreneur journey. I started the business without gleaning adequate information in the market, causing the company to downslope day by day. I will share a separate article regarding why and how the business failed.

During this article, I will be sharing how important to do market research before starting up your business to prevent business failure during startup.

Market Research

Proper market research is crucial for a new business idea. With the right market research, you can find out if there is demand and also if there are any competitors out there. There are many ways to do market research from customer surveys, friends and family, free data until buying data from a big data company.

“Starting a business without market research it’s like flying a plane with your eyes closed.”

How should you Start Your Market Research?

It’s never easy to understand the current market situation, especially if you are new to the industry. Make sure not to run into an industry without proper market research. Your impulsive decision might be the decision that your startup failed.

Google Trend

I would recommend one way for those with a small capital startup using Google Trend, which is free to use. With Google Trend, you can see how many people are interested in a specific product or service at a particular time to study the market. People started searching for a “Gaming Chair” during the pandemic lockdown in the image below. With the trend data shown, you can estimate the demand what product the customer is looking for.

Customer Survey

Never follow your competitors. Your competitors might not be correct about what they are doing. The best way to get the data research is thru your customer feedback. I suggest you join some FB Group and check it out on what they are looking for or even go to the mall and ask some customers for a survey.

Third-party software

A few data analysis platforms would crawl data from a few different eCommerce platforms that can give you various data to understand the market demand well. With the data, you could prepare and study more of it in a few different ways to cross-check to prevent any false data or survey collected.

Conclusion and Advice

No matter what kind of business is starting, ensure proper market research to avoid any mistake that will cause a downslope to the company.