Planning your market research

KATHMANDU, Feb 4: Many of us toy with business idea(s) these days. And in this age of successful startups, it's easy to presume that our ideas will turn profitable, too. If you're really prepared to materialize your ideas, you know that you need to have your research results ready before setting up business.

Getting your market research done is a crucial first step. Here are the few things you need to think about while planning your research.

Does the market want what you are offering?

Make sure the market is ready for what you want to offer. For instance, no one wants VCDs or floppy disks anymore, and it's useless to try to sell them these days. If your idea is to sell scented candles or customized wall calendars, you should research your target customers, how open the market is to the products, and how to best sell them. It's also smart to research whether the market is saturated or not. You wouldn't want to launch your clothing store just to find out that there are tons of similar shops in the same area.

What is the competition doing?

Always check the market to see if anyone else is doing what you're planning on doing. See if they are open to talking to you about the market, the kind of business you can expect in the initial years, etc. You can also discreetly check out what they are lacking in or what they're doing really well, so you can steer clear of or take inspiration from them as necessary. Checking out the local competition will also help you avoid being just one of the many startups providing similar service. Learn from their mistakes, and see whether you can find a better and quicker way to do something they're already doing well.

Who are your potential customers?

It's very important to identify your target customers. When you have the business idea in mind, you will naturally think about who your customers will be. Design your business around them. Are your potential customers office-goers? Are they animal lovers? Get to know them properly so that you're able to tell what their needs are. You can add to the service or business you provide by offering extra incentives that are tailored to suit your target group's taste. This way you will be coming up with something special for them.

How can you research more effectively?

Social media has proved to be an important tool of communication with an extensive reach. You can use it to research your business idea and the market for it. Rope in your friends and relatives who might be able to help you. Look up reading materials that could help you run your business better. Do online surveys. Meet as many people as you can—potential customers, people who are already running a similar business, or even established entrepreneurs who could give you valuable advice.