Use Market Research to Find Customers
Market research blends consumer behavior and economic trends to confirm and improve your business idea .
It ’ s crucial to understand your consumer base from the outset . Market research lets you reduce risks even while your business is still just a gleam in your eye .
Gather demographic information to better understand opportunities and limitations for gaining customers . This could include population data on age , wealth , family , interests , or anything else that ’ s relevant for your business .
Then answer the following questions to get a good sense of your market :
• Demand : Is there a desire for your product or service ?
• Market size : How many people would be interested in your offering ?
• Economic indicators : What is the income range and employment rate ?
• Location : Where do your customers live and where can your business reach ?
• Market saturation : How many similar options are already available to consumers ?
• Pricing : What do potential customers pay for these alternatives ?
You ’ ll also want to keep up with the latest small business trends . It ’ s important to gain a sense of the specific market share that will impact your profits .
You can do market research using existing sources , or you can do the research yourself and go direct to consumers .
Existing sources can save you a lot of time and ener- gy , but the information might not be as specific to your audience as you ’ d like . Use it to answer questions that are both general and quantifiable , like industry trends , demographics , and household incomes . Check online or start with our list of market research resources .
Asking consumers yourself can give you a nuanced understanding of your specific target audience . But direct research can be time consuming and expensive . Use it to answer questions about your specific business or customers , like reactions to your logo , improvements you could make to buying experience , and where customers might go instead of your business .
Here are a few methods you can use to do direct research :
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7 PACIFIC BUSINESS PARTNERS DECEMBER 2023