It’s said that coming up with a great idea is half the battle when starting a new business, but unfortunately, this is a rather simplistic way to look at it that really doesn’t serve you well. There are all kinds of factors and issues to consider and work out as you start to mold your business plan and model, but one is the most important is to look at current market trends. Here, we’ll take a look at why this is such an important step and how it can play into the success or the demise of your new start-up.
Get to Know the Industry Inside and Out
As you work to put together your business plan, a key factor is to gather and provide market research. If you’ve never started your own business before and haven’t been professionally trained in market research, then there’s a good chance this step will seem like somewhat of a mystery.
The whole point of market research is to give you a much better understanding of the industry you are looking to break into. This means the industry participants, the buying patterns, the competition, and the distribution patterns. You want to know every possible angle of the industry so that you are prepared to face challenges as they arise.
Market research also helps you to determine if your business idea is, in fact, relevant and has a space. For example, you don’t want to pick a market space that is shrinking. Take, for example, hunting in Wisconsin. Maybe you’re thinking of opening your own hunting gear shop. If that’s the case, being aware of information such as the fact coyote hunting may, in fact, be banned, is important. You need to be aware of all the latest news, and what may possibly happen in the future that could end up affecting your customer base.
Investors and lenders want to know that you’ve looked at all angles and come up with a solid and viable plan.
Your Passion Isn’t Enough
Of course, as an entrepreneur, there is no doubt you feel passionate and excited about your business idea. You’ve probably even run it by your friends and family members to get their input too. While this is all fine and great and can act as motivation, there is no factual basis for this passion. The idea needs to have more than passion driving it, there also has to be a need for your product or service on the market today. This can only be determined by in-depth and professional market research.
If you feel that you’re only capable of scraping the surface when it comes to the market research, then it can prove to be very helpful to hire a marketing research company to do the work for you. The more in-depth your research is, the better prepared your new business will be, which will increase its odds of success going forward.