How Important is Market Research for Entrepreneurs?
Most often entrepreneurs come up with great business ideas introducing innovative products and services. Unfortunately, many people don’t show much interest in their product or service or sometimes it may so happen that the consumers may not want to pay the expected price for the specific product or service.
Common mistakes made by entrepreneurs
New entrepreneurs entering the market would be making a grave mistake if they assume that-
- Their ideas or products are what the consumers want (without actually making an effort to understand who their consumers are
- Not taking any effort to find out who actually are their competitors
- Fix the price of the product at random on their own without doing any spade work to get an idea about how much money the consumers are actually willing to pay for the product
All the above reasons make market research essential for a new entrepreneur to avoid facing failure of their new born enterprise.
Primary introspection is a must
Primary Introspection should always be done by an entrepreneur willing to start a business venture or introducing a new product in the market. Before the introduction of a new concept in the market, an entrepreneur needs to do some basic introspection to understand the purpose for starting the business as listed below –
- Which are the new concepts and ideas that I would like to introduce in the market.
- Which product or service would I be selling?
- Whether my idea or concept is unique, practical and how would it accepted when introduced in the market?
- Whether my product would meet the requirement of consumers?
- Who are the competitors with whom I may have to compete?
- What is the business edge that I have over my competitors?
- Whether I would succeed in providing better quality of service over leading business competitors?
- What are the steps I need to take to create a demand for my product in the market?
- What specialized skills do I Possess that might help my new venture?
- What is the opinion of others pertaining to the strength and weakness that I have?
- What is my financial strength?
- What is the exact time available with me to carry out my business idea?
By pondering on all the above market research questions and answering them honestly, a business entrepreneur will be able to easily come to the conclusion that exhaustive research and preparation holds more relevance than motivation or talent when starting a new business or introducing a new product in the market.
Why should an entrepreneur undertake market research?
- By undertaking exhaustive market research, entrepreneurs can gain valuable insight about the exact market conditions that prevails
- Market research throws light on the latest trends prevailing in the market including a clear picture about the current products and services that are in great demand along with the products and services that are likely to be in demand in the near future
- The public reaction to the business ideas that are introduced can also be clearly understood by a business venture as a result of undertaking market research.
Only by understanding the public response to the specific product or service can a business hope to get funding for its business. The biggest advantage of undertaking market research for an entrepreneur is getting consumer feedback. The response obtained from consumers enables an entrepreneur to make the necessary corrections to the specific product or service before marketing it.
Market research is crucial for an entrepreneur to understand the consumer, to know whether the idea the entrepreneur had envisioned is already existent in the market in the form of another product or service. If the product or service is already present in the market, how different or similar it is to his own product or service and the steps the entrepreneur needs to take to make the product different from the one already prevailing in the market.
No entrepreneur can afford to overlook market research in the prevailing competitive environment and has to undertake the same right from the stage when he gets the idea to enter the market.