It is critically important to do primary market research in ALL phases of a startup (pre, during, and post). When you are at the ‘idea stage’, this should one of the first things on your ‘to do’ list (even before the business plan). By primary market research, I mean actually going out and talking to people who work in the same industry you are hoping to enter (competitors, suppliers, distributors, etc.). This may sound a little bizarre. After all, why would a company want to give advice to a potential competitor? However, you would be surprised at how open people are to discussing their industry with you. You absolutely need to get concrete feedback on an idea in order to create something tangible out of it. There is also a fear among new entrepreneurs that people might ’steal their idea’. Consequently, they elect to keep quiet about their idea unless absolutely necessary. As my small business professor once told me, for an idea to transform into something real, you have to discuss it with as many people as possible. That’s the only way to find out if the idea is viable or not. Naturally, you have to be willing to accept the truth, even if it hurts. It will save you bigger headaches in the long run.Besides, you need more than just a great idea to build a successful business. If it was that simple, every person with a great idea would be a successful entrepreneur.
Primary market research could also mean going out and talking to consumers. What are their likes and dislikes about a particular product or service? This will help establish if there is a particular need in the market that is presently not being met. It can also give you ideas for new features you can add to your product or service. This type of research can be done through surveys, focus groups, random interviews, or even cold calling.
Whether it’s talking to industry participants or actual customers, a business owner always needs to stay connected on a grassroots level. The business environment is constantly changing and you need to stay on top of the latest trends. If your business is not constantly evolving, you are losing ground to those who are.