5 Important Steps of Market Research for Startups

Market Research – Understanding Market

A market is the main area which requires special attention and research and preparations before starting your startup. Many startups didn’t go on a long successful journey because they didn’t identify and did some pre-preparation of the market, in short, they don’t do market research. Market research for startups is a very important task for the growth of startups. So here we are discussing the 5 important steps of Market research for startups that everyone should consider before planning for startups. Here we are referring the term- a Market as the geological place and social elements associated with that place, where you are going to launch your product or service by your startup. The market definition includes social cultures, cultural myths, ethics, and economic conditions and governmental rules in the society associated with the place where you are going to launch your startup.

Identifying the market and having market research is essential and one of the first important steps before you start your startup and decide a market – a place to launch your startup. If you launch your startup before doing any market research on the market and investing a huge amount in the wrong market then you are going to have a big loss. This is not only a philosophical statement there are many examples which got a loss because they invested in the wrong market and under an unfavorable time and conditions. Therefore, here we will explore 5 important steps of market research for startups especially, that you should consider before launching a startup in that market.

1. The product should be Attractive for Market 

There should be a compelling situation in the market that people buy your product or use your services. When people come to you themselves then your startup is going to hit success very soon. This situation can be created only when your product or service is completing a need of people in the market. If your product is the most satisfying product or service in the market against your all competitors. If the product or service you provide is unique and most of the people wants that type of product or service.

2. Demand Should be high in Market

The demand for your product should be high according to your plans. That means your product or service should be useful for most of the people in the market and not for only some people. Most of the people in the market should be able to reach to your product or service. Most of the people should be financially strong enough to afford your product or services. If you are going to sell a BMW car in a market where only 2 people can afford it then you are going to have a loss. So identifying the correct market and having a study of their financial status is important.

This is not always the case because there can be some product or services that are essential for everyone like any foodstuff, you may be a selling a product or service which is creating an addiction or a habit for people then identifying market doesn’t consider demand or need factors but other factors should be considered.

3. Government Rules – Policies Should be met

If the above point is considered and solved then the point of government rules should be the first thing to consider. The foreign policies, tax on your product or service and other government rules should not be unfavorable for your startup.

4. Don’t Hurt Cultural Ethics

 Your product or service should never harm the cultural ethics and tradition of the people in the market, at least most of the people. You should consider this point seriously and there may be the case that people are having a wrong mindset about your product or service. In that case, you should first change the mindset of the market and this can be a very big challenge.

5. Capture the Opportunity

The last point we are going to consider is the time when you are starting a startup and you should note that this is the most important point. The one who knows the market timing and starts a startup at that time is the biggest opportunist. He takes that opportunity and gets successful. It is the biggest point to remember that we should identify the opportunity and should catch that opportunity to get successful. Most of the successful business got success because they captured an opportunity. And it can also be a point for your unsuccessful startup. The market timing shouldn’t be wrong, there are some startups which experienced this. This may be the case that you are ahead of your market by a few years and they are not ready for your product or service.

So considering these 5 important steps of market research for startups growth, you can solve your market issue. Remember, understanding the market is most important before you do anything in your startup. To know more important steps of market research, stay connected with us and get aware of more issues before starting your startup. Contact us for any guidance. Have a nice day!