How to Brainstorm Business Ideas by Conducting a Market ResearchAbbakin
This session on how to brainstorm business ideas by conducting a market research emphasizes on different ways you can develop your ideas while finding out what the market needs.
No doubt, the best business ideas will come from you and will be based on who you are and what the market is looking for.
Before developing you business idea, you really need to discover whether there is a market for the product or service – as you don’t want to risk any resources.
So far, you’ve been looking inward to come up with a successful business idea, now it’s time to look outward to discover an unfilled need that you can meet with your product or service.
What is a Market Research?
No one can start and continue a business if he/she does not have a clear idea of what to sell, whom to sell to, and how to sell the choose products or services.
Market research is the process of gathering, analyzing and interpreting information about a market; and about a product or service to be offered for sale in that market.
Market research provides information about the past, present and potential customers’ details for the product or service under review; including research into the customers’ characteristics, spending habits, location and desired needs.
Advantages of Market Research
Market research is a vital function for any business that is willing to succeed. It gives the business owner a direction to go in developing the right business marketing plan.
Marketing research provides the specific information required for making decisions on a business and its products.
It tells companies whether they are meeting their customers’ needs and expectations, and also inform their ideas on how to tweak their service delivery.
The Goals of a Market Research
- Means of analyzing of data to help understand which products and services are in demand;
- Provides information on how to be competitive in marketing your products;
- Provides information on how to reduce the business risks;
- Provides information on how to spot current and upcoming problems in your industry;
- Provides information on how to identify sales opportunities within a market.
As an entrepreneur who wants to run a successful business, you will need to learn about your customers, your competitors and your industry – and these are what a good market research can help you archive.
Below are some tips on how to brainstorm business ideas while finding out what the market needs, where they need it, and how to deliver your products profitably.
How to Brainstorm Business Ideas by Conducting a Market Research
#1. Understand Your Customers and their Preferences
No small business can succeed without understanding its customers or target niche.
As a business owner, your entrepreneur ideas should be able to consider the people who you think are going to buy your product or service and where to find them.
If your product doesn’t appeal to a large market, you may never recover the cost of bringing your business idea to life.
A good indicator of a substantial market is the existence of other products that aim to solve the same problem like yours business does.
If a business is so revolutionary that not a single other product like it exists; this may presents a new set of marketing challenges.
Primary Research Processes
Primary research is information that comes directly from the source–that is the potential customers.
There’s no better way to coming up with a winning business idea that meets people’s needs, than talking to the potential customers and finding out what they want.
To get started, visit the nearby retail stores, go to the malls, and other offline or online marketplaces where you can meet and discuss with your target customers.
Attend seminars, trade shows and exhibition events where you can collect useful market information via interviews, market surveys, or questionnaires.
Some important questions to collect in your primary research might include:
- What factors do you consider when purchasing this product or service?
- What do you like or dislike about the products or services currently on the market?
- What areas would you suggest for improvement?
- What is the appropriate price for the product or service?
Many entrepreneurs fail to understand they’re actually going to sell benefits, and not ideas.
While the benefits of a business idea are what motivate consumers to buy the products; these benefits will also motivate your team members, investors, distributors and retailers where applicable.
Your successful business idea should be unique, beneficial, valuable, significant, qualitative, reliable, convenient and have a user-friendly interface or packaging.
During Your Market Research Process: Answer Key Questions, Such As:
- What products or services do you like that you haven’t been able to find around?
- Is there something that everybody hates to do that you can do for them?
- Is there a product or service that would make life easier for people?
- What business trends are happening that you can participate or mimic in a small way?
- Are there gaps in your current market that you can fill with your talents?
- Who and what can you see around your market environments?
- How can these factors influence your business planning?
Take the time and document these answers and don’t fear about hearing the negative aspects of your intending businesses.
It is much better to be aware of them and face them early on.
Processes on How to Brainstorm Business Ideas by Conducting a Market Research
#2. Think about Your Local Libraries and the Internet
Your local and university libraries or the internet can be a great place to start your secondary research.
Your secondary research is usually aim to analyze already published data that target businesses in a particular industry.
If your company does not have the huge amount of money to spend on market research, there is plenty of free information available to entrepreneurs on the internet.
When you’re developing online businesses, you can use common web resources like search engines to gather quantitative information about a website.
This information can help you determine many factors, such as where a site visitors are coming from, how long the visitors are spending on the website and which page they are mostly landing on.
Additionally, you can get useful information about identifying prospects through online business databases, business news, industry trends and company-specific business information.
#3. Find Official Government Sources of Market and Industry Data
Secondary research also involves gathering statistics, reports, studies and other data from organizations such as government agencies, trade associations and your local chamber of commerce.
The government institutions offer a wealth of data and information about businesses, industries and economic conditions that can aid in conducting your market research.
Get access to statistics on your industry, economic indicators, competitors, employment statistics, target customer base, and earnings/income levels from government agencies.
You can get a wealth of social, political and economic data from these reference sources.
Most county governments also publish population density, and distribution figures that can give ideas about current and future market trends and buying patterns.
#4. Join Local Chamber of Commerce or Trade Associations
Your local chamber of commerce or business development agency can also supply useful information for free; including assistance with site selection, demographic reports, market analysis, reference materials and directories of local businesses.
Some financial services firm and business development agencies may also offer seminars on marketing and related topics that can help you conduct the best business research.
With an eye out for unfilled opportunities, you can identify additional sources of information by joining your industry trade associations, reading business newspapers, books, and magazines.
Talking to experts in your association, watch television and listen to radio stations for business related topics and discussions.
#5. Understand the International Marketplace
It’s also important to understand the international factors that may influence your business.
Irrespective of you type of business, today’s economy is now a globalized marketplace.
Reports on trade issues, and investors activities in countries across the globe will help you get potential international markets insight for your products or services.
Use the internet and database searches from consulates or chambers of commerce to find information related to your interested country location, and business industry.
Use the information to plan for industry and economic shifts. Identify potential growth opportunities and increase the business profits through import/export trades.
Monitor the competition in your global market and find the best ways to mitigate business risks.
Keep in mind that your market research and business development are consistent efforts.
You don’t have to stay in a business you started forever if the idea does not fit the needs of the market.
However, you can continue running a business for a few years – until you come up with the best idea and/or you’re in a good position to start a more capital-intensive business of choice.
Therefore as you continue in your search for a viable business idea; put your business research antenna up – looking out for business opportunities and what others are doing out there.
You can connect with academic institutions, market research firms like Abbakin and other third parties or trade groups that gather and analyze research data about business trends and how to market a business.
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