7 tips on how to conduct market research for a new business

7 tips on how to conduct market research for a new business

Startups usually face a lot of challenges on the go; some of which are influenced by several external as well as internal factors. However, it is necessary that a new business gets everything right from the start so that every other issue that may arise could become traceable. Among others, a new business should conduct a market research which has proven to be instrumental to business growth over time.

So this article will put you through 7 practical tips that are instrumental to conducting a market research for new businesses. You may like to digress a little to checkout research topics in business management as we go further in this discussion.

Meanwhile, the market research has more to do with analysis than less. Last weekend, the Central bank of Nigeria has announced the ban of cryptocurrency transactions with Nigerian banks. The panic raised by this announcement is yet to be reconciled since many businesses were thrown off balance including crypto-exchange startups following the hasty implementation of the announcement. It all boils down to understanding the risk factors in a business and prepare for a rainy day.

So below are some analyses you have to conduct for the market that you are introducing your new business into.

Needs assessment/Analysis

Every business has a need it is laden to meet. It happens most of the time that businesses emerge to solve very specific issues. So for a new business, it is very vital to asses, analyze and determine underlying issues and see what part of the problem you want your business to solve and make fortunes out of it.

Interview potential customers

Make out time to interrogate people you suppose your proposed business is meant to serve. The responses you gather will be instrumental to knowing which plans to abort, which to hold fast unto and which to keep as trivial.

Analyze the competition

It is necessary to know who your business competitors are i.e if any. By identifying them, find and analyze their loopholes and their major strongholds. Combining your competitors’ weaknesses and reports from market needs helps to give a striking focus for your new business and the new market.

Technical Analysis

You should also look into procedures to work the business through an upgrade anytime in the future and as the business sprouts.

Location Analysis

Accessibility of a business location is as central as its market. However, the accessibility of businesses lately has extended to the internet space i.e. how optimized and user-friendly such website is. Therefore a new business with a physical structural outfit or just a digital company ought to make the location work out favorably for customers.

Manpower analysis

As a new business, getting competent hands is usually an issue of great concern if the business cannot afford to pay for those services. However, outsourcing your manpower needs are usually preferable than hiring outright, for instance; partnership are largely advised than paying for contracts.

Financial Analysis

Make financial plans, budgets and statistical estimate and possible returns on investment. This will largely influence your product cost or service charges directly and indirectly.

Sensitivity and risk analysis

Identify the growth and risks factors associated with your business. This will help you plan for survival strategies of your proposed business. 

Just like the delicate nature cryptocurrency and its market, businesses built around it should be experts in identifying escape routes in cases of any mishap and possible cases of hasty policy decision like it happened last weekend.