The importance of market research should never be underestimated, especially for those starting a new business. Market research builds a sturdy foundation for a business to be built upon, preparing the company for any threats or weaknesses that may arise as the business grows. From getting to know your target audience to exploring potential competitors, market research gives businesses a competitive edge, allowing them to thrive in new environments.
If you’re still wondering why market research is so important when starting a new business, keep reading to see why it should be at the top of your to-do list.
To Make Sure You Have an Audience
Before you begin making any big steps in business, you need to ensure there’s an audience for you to sell to. Without customers, there are no sales. Market research will determine if you have a potential audience and where they’re hiding.
If no one’s interested in the product or service you’re offering, you’ll need to reconsider if starting a new business in that direction is the best idea. On the other hand, if there is a promising audience, it’s important you make the right decisions regarding where and how to sell to these customers.
To Know How to Sell to Them
Considering only 50 percent of new businesses make it past the five-year mark, knowing how to sell to your customers should be your number-one priority. The way people buy is changing. Having a thorough understanding of your target audience will help you determine not only who to sell to, but how to sell to them.
If your audience isn’t reading the newspaper, why try to reach them there? Market research allows you to know the best platforms for you to sell to your audience. From online solutions to in-store promotions, knowing how your audience shops is crucial for your business and its success.
To Know Your Competition
When starting a new business, it’s imperative that you’re aware of any companies that may be considered competition. Whether it’s a direct or indirect competitor, knowing how their businesses may threaten yours will help you better promote your own product and remain competitive within the shared audience.
Market research determines who might pose a threat to your new business, giving you the upper hand. If you’re aware of the competition, you can strategically work towards changing customer loyalty and positioning your brand in a unique light. Without this knowledge, you’ll find yourself feeling like a small fish in a big pond—unable to get past competition you didn’t know existed.
To Know Who Can Help
Understanding the ins and outs of marketing and sales can be confusing, especially when you’re starting a new business. Marketing tactics may seem unclear. How can you best reach and communicate with your audience? Where do you even begin?
Thankfully, combining market research with the professional support of an inbound marketing agency can help you improve your communication tactics. From content creation to social media management, an inbound marketing agency can combine the information from your market research with the most effective marketing and sales tactics to drive results. Only with the in-depth knowledge of your target audience can an agency effectively successfully promote your business.
Starting a new business may seem scary. However, it doesn’t have to be. Going the extra mile and conducting market research ensures you have all the information you need to make your new business a success. Don’t stay in the dark—know the information you need to succeed.
Posted By Author Mike Lieberman, CEO and Chief Revenue Scientist
Mike is the CEO and Chief Revenue Scientist at Square 2. He is passionate about helping people turn their ordinary businesses into businesses people talk about. For more than 25 years, Mike has been working hand-in-hand with CEOs and marketing and sales executives to help them create strategic revenue growth plans, compelling marketing strategies and remarkable sales processes that shorten the sales cycle and increase close rates.