Gain an in-depth understanding of your industry with market research.
Doing in-depth market research is vital to anyone looking to start a new business. You should not rely on basic public data when analyzing the nature of the business and your target demographic. There are numerous options for conducting market research before you start a business. You can perform the research on your own, purchase specialized reports from established firms or hire a market research agency to gather precise data. Make your decision based on the type of business you are starting and the budget you have available for market research.
Instructions
1. Do the research yourself. It's crucial to analyze both your market and target customers before you start throwing money at advertising. Gather information on your competitors to determine what works, what doesn't work and where there are opportunities in the market. You can do the research in person, at your local business library or using online resources such as DataMonitor and EdgarScan. LLRX, an independent legal and business resource, provides a detailed list of hundreds of business data sources. You can use CensusScope, a tool for investigating U.S. demographic trends, to gather data on your target market.
2. Get direct customer data. Conduct surveys, focus group sessions or feedback tests, depending on what would work best for your particular product or service. Approach customers directly or place an ad online on a website such as Craigslist to offer payment for feedback. Make sure to get test subjects that mirror your target audience. You can also contact business research departments at local colleges and universities to see if there are qualified graduate students who would conduct the research at a reasonable rate.
3. Purchase expert market research data. There are many firms that specialize in market research and will perform sophisticated studies of particular segments of a market. The advantage of using one of these reports is that you'd gain valuable data that would otherwise cost you thousands of dollars to find on your own. The disadvantage is that the study might not provide that exact data you seek for your particular market or geographic region. Established market research films include IDC, Kantar Group, Gartner and Forrester. Find one that focuses on your particular industry.
4. Hire a research firm to gather direct market data. If you want information directly from the mouths of your potential customers along with sophisticated market analysis, hire a full-service market research firm. Companies such as SmartRevenue use surveyors to interview shoppers at destinations of your choice to determine shopping behavior and purchase decisions. Use Greenbook, a guide for buyers of market research services, to find other full-service agencies.
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