Don’t rely solely on family and friends for feedback – they simply want to be supportive, or they may not be in your target market.
Before you get into business, take time to understand:
- The market for your product. Get some hard facts. Conduct thorough market research (you can do this with a simple questionnaire) with the people who you think will buy your products or service.
- Your competition. Don’t say you don't have any. Look harder.
- The niche or gap in the market you are stepping into. How is your product or service unlike any other product or service currently in the market? How does your product/service fulfil a need in a way unlike any other in the market?
An example - target market:You are planning to launch a range of high-end baby clothes. You don't have just one target market, you have several - and they will all buy your product for slighty different reasons:
Expectant mothers: motivated by the desire to have the best for their unborn child. Your clothes will be high-end, so your customers will most probably be professionals or young women with high aspirations. Not currently so concerned about budgeting (she still has an income).
Mothers of young children: Budget and practicality are more of a concern. This audience is probably the wealthier end of your Expectant Mothers market. They are also probably more critical - looking for clothes that wear well and are practical as well as look great.
Grandmothers: Grandma's were put on his earth to spoil their grandchildren - wealthier grandparents can afford to buy to indulge. Just the kind of consumer you are looking for!
Basic Market Research Form
Download: Click Here
Use this form to:
- eliminate those who are NOT your market;
- determine when/where/how many/how often your target market may buy the product/service;
- identify other possible product or service opportunities
