Importance of Market Research before starting a new business

A research is always important before, after, and during any task. Taking business into consideration, market researches play a vital role and become deciding factors for the next steps to be taken by the authorities. So, what is market research? 

A market research is a study which deals with the behaviour of the customers in response to a particular product. The research is conducted through surveys, online and offline feedback from customers, and many other ways. The responses are then analysed to get to a particular result. The businesses make certain changes accordingly to serve their customers better.

Usually, people follow their parents’ steps and enter into the businesses established by their elders. Some get reputed jobs and work under their seniors. While, on the other hand, there are several other people who follow their own dreams and try to establish their own position in the market with their innovative and unique business ideas. Today’s dynamic market welcomes all with open arms and lets them a chance to prove themselves. They become a part of the competition and try  to be on the top position. They go through the market situation and then take several decisions which are fruitful for their respective organizations.

Today’s market is quite competitive and dynamic. It can change itself immediately according to the latest trends. Start-ups and new businesses are emerging rapidly. Before entering into the real world, or the market, the owners study market carefully and only then invest in it. One should know that economy is not the same every other time. It goes up and down every day. The market surveys help the new businessmen to know about the present conditions. So, they should shift their attentive to what the signs are trying to show before entering into the business. This has numerous benefits of its own.

Patience always gives better and assured results. One should wait for the perfect time and only then step into the market. The research results are full of new information for the owners. For example, they get to know about their competitors through the customers and their feedback. The price and quality of a product are the major deciding force of the customer behaviour. Conducting market researches is always a trend in the Indian economy. It also allows the risk-takers to make decisions for investing in a particular business. One should keep the following points related to market research before starting a new business. 

  1. Maximum Business Opportunities: The market research gives maximum business opportunities to the organizations and companies. Through proper research, the businesses can get to know more about the companies which can complement to them, or let’s say, which can be helpful to them. For example, those companies which provide raw material for another company’s final product are complimentary to each other.
  2. Competition: Even before entering into the market, you have your competitors waiting for you. Through market research, you can limit them and focus to be better from the largest threats. For instance, out of a hundred sellers selling the same product, you must be aware of the most important ones who can actually affect your business.
  3. Lesser Business Risks: With big businesses, risks are also there. The market researches help you to know about the weakest part of the market, and can stop you making the same mistake, (if you are going to do so) and can save a lot of funds. This also helps the investors and risk-takers as intimidating them even before investing is very important.
  4. Promotion: It is a well-known fact that promotion is an essential tool to establish yourself in the market. When you know that your competitors have not promoted their products well, so you should get your hands on it. If the market research reveals that a product, designed for a particular location, does not has its reach there, then you should promote it in such  a way that it reaches there and makes its presence.
  5. Advertising: It should be noticed that there is a lot of difference between promotion and advertising. Promotion means promoting your product yourself, while advertising means promoting your product in such a way that it makes place in the hearts of people. They remember it like where have they seen it. They build a tendency to purchase it. Advertisements should be done on digital platforms, while promotion should be done manually.
  6. Start with Smaller Goals: While you are competing with the largest business tycoons, you should not target the size of people they have targeted, as it is very obvious that you would not be able to meet the needs of the customers at a large scale. Hence, get your hands on the unsatisfied customers and then try to achieve big.
  7. Take Necessary Advice: People never think out of the box. Be the one, think out of the box.  Go through the results of the market surveys conducted. Take advice from the trustworthy people, friends, and read online blogs to clear you out.
  8. Cost: It is difficult to earn profits in the first month, quarter, or let’s say, first year of establishing the business. The dynamic market structure is solely responsible for all the incurred costs. You must be prepared for it through the results of market research.
  9. Business Partners: If you have a good amount to invest, try to collaborate with the small businesses of your interest. This helps you lower the risks and get good profits. Conduct a market research with keeping the partnership as the centre, and you can bring companies having potential to top.
  10. Employees: Last, but not the least, there is no company without employees. The market research does not only include products, it also gets a glimpse of the employees working. This directly implies their salaries and other benefits to be kept in mind before hiring them.

These points highlight the importance of market research before starting a new business and face problems later in life.

Bhanu Garg: