Market Research For Startups – Don’t Take A Step In The Dark
Taking that first step into the market with your business is a daunting prospect. And those first few steps can feel more unnerving if you don’t really know how the market will react. That’s why thorough market research for startups can really help to Jumpstart your business.
Market research might not be at the top of the ‘To Do’ list for every new business. There are so many obstacles that stand in the way of success for a start-up and it won’t come as a surprise that finance is a key challenge. Recent statistics show that:
- 60% of new companies are unable to access finance from a preferred source
- 16% can’t access enough capital from ANY source
- 5% don’t even know where to look
But finance isn’t the only hurdle. Other key concerns for start-ups are growing a customer base and hiring talent. This is interesting as it shows that new start-ups are aware of the environmental challenges they face.
The Valley of Death
Although it might seem strange, not just focussing on the pound sign allows you to step back, clear your mind and look at ALL possible avenues. For those start-ups who have negotiated the initial hurdle of acquiring seed funding it’s crucial for them to spend wisely – and securing accurate Market Research for startups can guide a new business through its Acceleration Stage, or, “The Valley of Death”.
During this trek through the Valley of Death four key factors need to be addressed
- Product validation
- Market validation
- Penetration of the market
- Market Expansion
Succeeding in these areas requires a true understanding of where your product sits, how consumers will react when the product enters the market place and identifies realistic competitors. There is no crystal ball for this process but what is available is a comprehensive evaluation of the market you are targeting. Having an understanding of the market and consumer habits is essential at this crucial stage for any new business.
What People Want
Now more than ever before, consumers are talking about products and brands without being prompted. The age of social media has given consumers a platform to broadcast their opinions as and when they feel and those opinions can have a huge impact on planning for product success.
The potential of posts going viral on platforms such as Twitter can create a tidal wave of opinion, both positive and negative. This fact alone justifies the need for due diligence to be carried out for any new business with the emphasis on research and insight.
Reaching the Next Stage
At Material we can support a new business that is ready to take the leap from the initial funding stage of their project. A pivotal step for any start-up is getting through the “Valley of Death’ to the venture capital stage. The correct research and insight can help a start-up validate their business model and greatly assists in this progression. Choosing to invest seed funding wisely in thorough market research boosts the survival chances for new businesses.
We provide new businesses with valuable insights through our research capabilities which have been honed through years of experience. These insights can guide new businesses through competitive market places and provide invaluable assistance in ensuring the longevity for start-ups.
For more information on jumpstart and our other market research support services contact firstname.lastname@example.org for more details.