- April 14, 2022
- Posted by: BPlan Experts
- Categories: Entrepreneurship, Marketing, Planning, Startups
Investors are in the business of making money. They will not commit their hard-earned money unless they know that their investment is sound. That is why market research is important. Before you approach potential investors with your business proposal, conduct some research. It will tell you whether your business idea is feasible and whether your company will be profitable. Your market research report should be thorough and outline how your company will make money and why it’s a good investment.
The first thing that investors will want to find out in a market research report is how much competition there is in your field. Where are your competitors located? What are their financials? How much are they selling? What are their prospects for growth? You will need to know all of these things to properly assess the viability of your business. And with the advent of the Internet, information about the field can be easily accessed. After all, the competition study will tell you the chance of winning your market share.
Market research reports usually provide information about the size of a market which is only available from a comprehensive survey of current and potential competitors. How can you find out the market size? This is normally done by gathering information from multiple sources including competitors, consumers, suppliers, resellers, distributors, and other market participants. Some tools you can use are Google Trends, Bing Trends, and Google Keyword Planner. You will want to know the market size according to the sources you have already mentioned.
Technical Analysis is a widely used term in the financial industry that refers to the process of analyzing market data and trends to make predictions about future market performance. Technical analysts rely on a variety of information, including price and volume changes, economic indicators, political events, sentiment indicators (such as investor surveys), and news reports. They use these inputs to help them make predictions about where the prices are going. If you are on a budget or cannot devote the time to technical analysis, you can hire a market research company to do it for you.
Well-Defined Customer Problem
Every business needs a customer, right? You cannot sell anything if nobody buys what you are selling. What is your customer problem? It is what your customers are saying that drives their need for your product or service. The problem that the customer has is what the solution should be. The sooner you can nail down this problem and solve it, the better. An investor will like to know about the unique customer problem that you are solving in your market research report.
Well-Defined Target Audience
Your marketing strategy will depend on your customer problem, and your target audience will be driven by this problem. If you have a younger customer, you will target the 18-to 25-year-old demographic. If you have a more established customer, you will target the people who have been around the block a few times and know what they want. A properly segmented target audience is the bedrock of an investor-friendly market research report.
Unique Value Proposition
Every business has a different value proposition. What is it that makes your company unique? This is what sets your company apart from the competition. The value proposition should be based on the customer problem that you’ve already discussed. The value proposition for a company is the unique thing that it offers, including its price, quality, features, and convenience. In a market research report, it should be easy to understand from an investor’s point of view.
Once you have discovered your customer problem and your target audience, you should do a pricing study. A market research report should include what is the most that your potential customers are willing to pay for your product or service? It will be a huge indicator of whether your business idea is feasible or not. To make the best pricing decision, you’ll want to price your product or service according to these results. However, this decision isn’t made in a vacuum. You will also have to take into account the competition and the market size.
After you have finalized the pricing, you will want to include a financial study in your market research report. How much money do you believe that the business idea will make? How much will you as an investor invest in it? What percentage of the profit will you keep? These are all great questions to ask yourself. Then, you will want to find out these answers from a business planning consultant.
Start your market research report
You will want to use this information to improve your market research report and make sure that it is as successful as possible. Many aspects are important when creating a market research report, but one of the most important is to be organized and thorough. The more organized you are, the easier it will be to impress your investors with your market research report.
– Common Pitfalls Encountered by Small Businesses while Conducting Market Research