Determine the ‘market need’ of your business idea with these top strategies

Whether your business is just an idea or you’re in the research phase, it’s never too early to think about determining the market need. It is essential to find out what consumers need from your product and determine a target audience.

However, there are many ways to effectively determine the market need for your specific product or service. To help you with this, eight members of Council for Young Entrepreneurs explain some specific strategies to expose the need for your idea. Follow their recommended tips to complete this vital part of your business research.

1. Identify Solvable Problems

Don’t think too much about it. Too many “ideas” get stuck at the starting gate and never become reality through too much thought. I am the founder of six different companies, and each of them is built on the same concept: identify a problem that I can solve and that people are willing to pay me to solve. Not every idea will be the next Uber or Facebook, and if you spend your life trying to do that, you could end up being disappointed. My companies have not been unique. I have not developed my own tools. I’ve been able to consistently use or build on existing systems and build a better mousetrap. There will always be someone willing to pay for expertise, and if you can identify and capitalize on those areas, the market will be happy to pay a fair price for a quality experience. † Frank B. Mengert† ebm

2. Talk to potential consumers

All that matters is whether customers want to buy your product, so talk to customers. To validate whether they would buy your product if it was built, you should try to get some form of commitment from them. For example, make them commit to being a beta user, say they’d spend X amount on it if you built certain features or, ideally, say they’d pay upfront to become a beta customer. If you can get strong commitments from early customers, you know you’re onto something. If you’ve had a lot of conversations but can’t get anyone to commit, you may need to rethink your idea. † Ashwin Sreenivas† Campfire

3. Track the VC Dollars

One of the best ways to identify a substantial profitable business opportunity is to see where the venture capital dollars are going. VCs are pushing money to areas where help is most needed. If you see growth capital moving into one area, rest assured that business ideas involved in it will be very good. Otherwise, you’re wasting time solving a problem that’s too small. In addition, and equally important, you need to talk to the customers. Let the market tell you where to go; don’t rely on your own brand. † Kevin Marcus† Verium Analytics, Inc.

4. Google it

Do a Google search. What question would a potential customer type into Google to find a product or service like yours to meet their need or solve their problem? That’s the question you need to type into Google. The search results will help you determine whether the need is generating a high volume of requests and whether other companies are already meeting that need with another product or service. Don’t stop there. Think of several questions people would ask to find a product or service like yours and type them all into Google. Look at the related searches that Google offers at the bottom of the search results page. Dig deeper. Visit the results pages and see what people are talking about and what products other companies are offering to meet their needs. Then offer something better. † Jonathan Prichard† MattressInsider.com

5. Get feedback from others in the industry

Talk to people in that field and industry. Some ideas are brilliant; others are terrible. You will really want to know which one is yours before investing time, energy and resources. Include feedback from others. Change and edit your plan as needed. The worst thing you can do is think you know it all and fall flat on your face. Opinions and feedback are free. This is your best tool for determining if your idea is worth pursuing or if it needs further refinement before it’s ready to be released. † Mary Harcourt† CosmoGlo

6. Get involved with your target audience

The easiest way to find out if there’s a market for your business idea is to get involved in the community you want to join. I suggest spending time in relevant social media groups. You can start new conversations, respond to existing posts, or even take a survey. Write down what you learn during these meetings and use the data when planning your product and website. For example, let’s say you want to create new email marketing software. Everyone in your social groups says they’d like to see more segmentation options, so you can rest assured that this feature would work well if you included it with your software. I believe this step is critical to your success, as you must meet and exceed customer expectations if you want to thrive in a busy industry. † Chris Christoff† MonsterInsights

7. Consider the Competition

Find a competitor for your business idea. There is always a competitor; if you think there is no competition, your idea is not yet a business idea. After identifying your competitor, analyze their sales trends, their market and their flaws. This will give you an idea of ​​whether your product will be accepted in the market and what the possible sales trends for your product will be. It is important to do this early as you will learn what not to do in your business. Someone’s failure or success strategy can be a cheaper learning lesson for you. It allows you to adapt your idea and strategy in a way that works practically as opposed to what you think will work. † Kripa Shroff† AK Multinational LLC

8. Use a focus group

Conduct a market research focus group. You can do it alone or hire a company. That way, you’ll find out from normal, ordinary people whether your business idea is actually working, and the feedback will be honest and valid. † Andrew Schrage† Money Crashers Personal Finance