Goals and Importance of Market Research
If you have business goals in mind such as opening up more locations, securing funding, or changing your brand identity, you may want to consider doing some market research. This will ensure that you’re making business decisions with as much knowledge as possible.
Market research comes in many forms — online through questionnaires and surveys, one-on-one interviews, or focus groups. Some methods will be more expensive than others. But even something as simple as a poll on your social media could show you stats about your target audience.
Here are a few reasons why you should consider doing a round of market research this year:
- It can help guide you in big decisions
In business, you want to make sure you’re making decisions from the most informed place possible. This is not the time to trust your gut. Market research comes in handy when you’re stuck between two ideas and aren’t sure which to choose. You also might be thinking of completely pivoting the direction of the business but don’t want to lose your customers. Performing a quick round of market research will give you the information you need to make your next big business decision with confidence.
- It can help convince investors to fund you
Have you ever seen an episode of Shark Tank where companies come in and pitch but aren’t able to answer any statistics-related questions? Trust us, you don’t want to be in that situation! Investors love knowing stats about everything, including your industry, your company, and your customer base. Doing some market research before you pitch to an investor will help convince them that you know what you’re doing and that your company is on track for success.
- It can give you ideas on how to expand your business
Thinking of opening a new location or expanding into a new type of product or service? Market research could help guide you in which direction to go! If, in fact, you are opening a new location, market research could tell you which area of town would be best for your new store. You also might notice that your existing customers are craving a new product from you that’s currently on-trend. You’ll never know unless you ask!
- It can help you evolve with the times
Times are always changing, and while you could base your re-brand strategy on what you read in the news or what your nephew told you, one of the best ways to get the information you need is to do market research! Find out what your audience wants and do it on a consistent basis as society evolves and changes. Your target audience is a unique group, and what they wanted last year might be completely different from this year.
It’s never too soon to start market research. Start where you feel comfortable most and apply your learnings! The more you do it, the more information you’ll have and the more empowered you will feel when making decisions for your business.