How to Test Your Pre-Startup or Startup Idea Potential

Business Blogging 11/22/2013
You may have a great business idea but you need to prove it and what a better way to do it then asking your potential and/or current customers directly. A pre-startup, startup or even more established companies, can test the potential of their ideas by conducting market research. However, the cost associated with it, limits the depth and activities related to market research which is probably why many small businesses conduct predominantly secondary market research and don’t make the effort to conduct primary research.

Nevertheless, primary research is still as important and can save businessmen a lot of time and exertion and can be done for a fraction of the cost by using DIY online market research. DIY online market research has many positives, including efficient management, lower cost, segmentation, quick data, and access to a platform with thousands of people within your marketplace. Yes, you may have to spend some time to develop your own survey, but you will most likely save a lot of money in the long run because you will have a better knowlesge about what the market perception is about your idea and idea delivery, and you will better allocate your finances in the project. Besides, it is better to learn if your business idea is worth the effort before you jump into it, then later regret that you have missed that very important step towards your business plan.

I am not going to go into details how to conduct your DIY market research but I will mention something that is essential to know before you start working on it. You need to think backwards! This means that you would need to ask yourself what type of information you need to know and then form the questions accordingly revealing the answers to it.

For example:

If you want to know if there is a market for this new product or service you have in mind, you can not ask consumers “Is there a market for this product? You will ask them “Would you use this product?; Why would you use it?; How would you use it?; When would you use it?” From the collected information through these questions, you will then build the answers to your business questions and then decide whether there is a market for this product/service and if there is, if this market is where you thought it is.

If you want to learn more about whether you have competition on the targeted market, you can ask consumers directly: “Did you use similar products?; Would you prefer our design of the product over the competitors’?’’, etc.

If you also want to know where your product would stand pricewise and whether you can overcome the competitor’s prices and margins, you would ask consumers questions that would help you figure out how to price your product and if you can be competitive by price and/or if it is worth your time and effort to get started in this industry if the competition is at the level it is.

As I stated earlier in this blog, it is essential to save some time and money to learn more about your market and find out if your ideas are worth your time and effort. To get started with Tellwut DIY Online Market Research, you can ask us for a quote today.

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