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The Power of Market Research: How to Make Your Startup Company Reach Its 6th Birthday

by Anasvirk
November 2, 2024
0
Marketing
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In the current economic environment, starting a business is not easy. The chances of your business to last more than five years is continually decreasing. In fact, almost 50% of businesses do not reach the 6-year mark. A 2018 report by Startup Muster found that the number of early-stage startups in Australia fell to 1,465 from 1,675 in 2017. Furthermore, increased competition means fewer opportunities for growth.

There are several ways on how a startup company can employ a market research agency to improve its chance of surviving past five years. For a business to start in these uncertain times, they need to have an advantage over their competitors. That is where information comes in. Having more information could mean the difference between a successful business and a failed one.

Determine Your New Company’s Feasibility

Table of Contents

Toggle
  • Determine Your New Company’s Feasibility
  • Inquire about the Public’s Interest on Your New Product or Service
  • Confirm Optimal Product Placement
  • Develop Competitive Strategies

There is a reason why every business should start with a feasibility study. This study provides information on whether there is an existing demand for a product or service. It also includes possible problems that a business might encounter, may it be logistical, financial, or geographical. The feasibility of a business depends on finding solutions for those problems.

Inquire about the Public’s Interest on Your New Product or Service

Knowing what the public is interested in is often tricky. It is almost impossible to create a large enough sample size to make the information accurate. Plus, many factors can affect any kind of study with a large sample population. Fortunately, market research agencies provide information that you need for your target demographic.

For example, if you are planning to open a laundry business, a market research agency will administer a survey to find out what percentage of Australians in your area use a laundry service regularly. They can also determine if those people are satisfied with the laundry service they are currently using and if they are willing to try another company.

Confirm Optimal Product Placement

It is not just about the quality of the product, but also about when, where, and how a product is distributed. How good a product is will not matter if people do not know it exists. Timing is crucial as well. Starting a company that sells wool jackets will not be very wise if the climate has been extremely hot in the last few years. Where is important too. It will not be a good idea to put the warehouses of your storage facility business far from the city because it takes away one key factor for customers wanting your service – convenience.

Develop Competitive Strategies

Unless you have a business idea that no one has ever thought of, expecting to have competition is realistic. Competition continually improves the free market by making sure that customers get the best prices, quality, and quantity of goods and services.

Startups need to gauge the competition to see in what areas they can improve in the existing business model. A market research agency can determine how your product or service compares to the competition, and in turn, can make suggestions on competitive pricing.

Knowledge is power. It is never more accurate than in the business sector, especially if your company is just starting. Information is now at your fingertips, and you need to gather that information and use it to your advantage. Knowledge is essential for any company’s survival.

 

Tags: businessmarketingresearch
Anasvirk

Anasvirk

Anas is a young business entrepreneur and blogger. He loves to explore creative ideas and transform them into a valuable read by his amazing writings skills.

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