Discover how to ensure that your business idea is likely to be successful through market research validation.
If you do not have an idea yet, check out this article on how I brake down how to discover an idea for your business.
The first step to starting a new business or launching a product or service on the market is an idea. The idea could be anything but how do you know whether you should follow this concept to fruition? Pursuing an idea involves risk and the majority of new businesses fail. You need to be smart.
The answer is market research. Through the right market research, you can gain evidence using key metrics that your idea is likely to be profitable and fill a gap in demand that exists.
How Important Is Market Research?
Market research is a growing industry. It expanded twofold between the period of 2008 and 2019. This highlights that more businesses and startup owners are completing vast amounts of research before launching a new product or service.
How To Validate Your Idea Through Research?
To validate an idea, you need to make sure that you understand key points including your:
- Target audience
- Pricing requirements
You should then assess the size of the audience that you are likely to capture. This will help to justify the launch of your business.
Another way to ensure that you are on the right track is to explore the monthly search volume for terms connected to your product or idea. According to Moz, anything that generates more than 11,500 monthly searches is in high demand.
You could also conduct interviews with your target customers. This can be a great way to learn about the potential of a specific product. You may need to hire a market research company to run focus groups for your business.
We hope this helps you understand everything you need to know about validating a specific idea through the right research channels. To learn more or get expert advice about your new venture, contact Benjamin Naderi and we will be happy to assist you further.