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Wednesday, 27 September 2017

ENTREPRENEURSHIP: DOING A MARKET RESEARCH FOR YOUR STARTUP

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A market research is an x-ray of the market you intend to operate. Having an idea is not enough. You need to know whether or not your idea is viable or feasible; this can be achieved through a thorough survey of your industry. It gives you a real picture of the market.

A market research is what gives you the information with which to write your business plan, which ascertains the viability of your business idea. It’s not only for startups, but also for already existing businesses.

As an already existing business, you need to know and understand the market signals per time, through a market research, so as to appropriately position your business for optimum result.

In this post, we shall be discussing how you can do your market research for your startup. It is very essential for an idea that needs external funding. The guide provided below is already explicit and may not need further explanation.

There are different segments in a market research which are as follows:

1.  PRODUCTS AND SERVICES: 

a.List and describe each product or service you intent to sell using the following: Features, Content, use, benefits.

b. Who do you think need your products or services? Men, Women, Children, Teenagers, Middle class, upper class, aged, expectant mothers, nursing mothers, families, career professionals, millennial, and so on.  

c. What do they use it for? Make more money, health issues, more knowledge, kitchen, feeding, mobility, relaxation, career development, child care and more.

2.  INDUSTRY ANALYSIS:

a. What industry does your business belong? Education, Manufacturing, Food, Real estate, Fashion, Entertainment, just name it.

b. What is the estimated market size or how big is the market?

c. List the categories of operators in the industry? – Small, medium and big players

d. List the major players in this industry nationwide/statewide.

e. Describe the current demand in your target market – Is the demand still growing?

f. What do you think is driving the growth? Growth of the middle class, taste & fashion, population, urbanization, government policies/budget and so on.

g. Why do you think new businesses will succeed in this industry? Check present & future demand, the gap in the market, population, amongst others.

h. Which segment will you be targeting?  Men, Women, Children, Teenagers, Middle class, upper class, aged, expectant mothers, nursing mothers, families, career professionals, millennial, and so on.  

3. COMPETITION:

a. Describe the sales trends/seasonality in this industry. Is it upward, sloppy, up & down, downwards.

b. Describe the growth potential and opportunity for a business of your size. What are the gaps in the market you intend to address?

c. What barriers to entry exist in this industry? The difficulties you need to overcome in entering the market. Union, Capital, Pricing, License, incumbents, legal issues, government policies and the like.

d. How will you overcome the barriers?

4. POTENTIAL CUSTOMERS:

a. Who are your targeted customers?

b. Where are they located? Rural areas, urban centres, highbrow areas, lowbrow areas and so on.  

c. Describe their most important characteristics – age, gender, income, education, occupation and so on.

d. How many are they? You can get this information through google, local government, research companies and the like.

e. How many do you think will buy from you?

5.  MARKETING:

a. What are the most effective ways of getting across to potential customers in this industry? Word of mouth, referrals, social media, email, website, bulk sms, Sales letters, handbills, media boards, newspapers, magazines, radio, TV, Video amongst others.
  
b. How often is it necessary to advertise in this industry? Daily, Weekly, Bi-monthly, monthly, quarterly, ….

c. Describe how sales are made or can be made in this industry – retail, direct sales, wholesale, agents, MLM, independent representatives, marketing/distribution Company and so on.

6.  PROPOSED LOCATION:

a. Describe the type of location that will be convenient for customers – Space, layout, painting, furniture & fittings.

b. If you already have one, how convenient is your location to your customers?







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