Planning for success: How to perform market research

Boom! You've had that magic 'aha' moment, and you think now is the right time to pursue your career as an entrepreneur. Huge congratulations are in order as, after all, many people struggle to get to this stage.

However, while the beermat calculations might be over, this is only the start of your journey. Plenty lies ahead, and market research is one of the key areas you must look into. Get it wrong, and that golden idea could be in tatters. Get it right, and you could be on the road to riches. Let's take a look at how you can satisfy the latter.

Target the right people

The first step is to ensure that you target the right people with your research. This might seem obvious, but it's worth reiterating as it's so important.

There are a few ways that you can target these people. Firstly, you can use your existing customer base. These people have already shown an interest in what you do, so they're more likely to be receptive to your research.

Another way to target the right people is to use demographic data. This is a process of using statistical data to target groups of people who share similar characteristics. This is often used by businesses to target their marketing to specific groups of people.

Size matters...

When it comes to market research, size definitely matters. The bigger your sample size, the more accurate your analysis is likely to be.

There are a few ways that you can increase your sample size. Firstly, you can use online surveys. These are a great way to reach many people quickly and easily.

Another way to increase your sample size is to offer incentives. This could be anything from a discount on your products to a freebie. This will encourage more people to take part in your research.

Keep it short and sweet

Make no mistake about it; less is definitely more. The last thing you want to do is bombard people with questions and put them off taking part in your research.

Keep your surveys short and to the point. Stick to a maximum of 10 questions and ensure they're all relevant.

...But ask the right questions

While it's important to keep your surveys short, it's just as important to make sure you're asking the right questions. After all, there's no point in asking irrelevant questions that will never give you the information you need.

Before writing your questionnaire, sit down and think about what you want to find out. This isn't the time for "nice to haves"; you need crucial data. Every answer you receive should help you make a decision.

It's not just about asking people

Market research tends to be associated with asking people pre-determined lists of questions, as we have already mulled through. However, there can be so much more.

Let's not forget that you're trying to find out about the whole market. Your customers are a massive part of this, but so are the costs you will endure. Whether it's your insurance costs or perhaps annual accreditation fees that are so common in some industries, make sure you incorporate as much information as possible.

While it's great to understand what your customer wants, you won't be successful if you don't understand the market you're operating in.