According to Bloomberg, about 80% of entrepreneurs' business ventures fail within the first 18 months. Whether or not these entrepreneurs work to turn things around, I’m not sure. But, what I do know is that once a business begins the downward spiral, there are ways that you can direct your business back to the right track, one of which, and potentially the most crucial, is market research.
Market research provides businesses with information on a range of topics, from consumer’s wants, needs, and shopping behaviors, all the way to competitive analysis, and even full industry breakdowns. So, depending on the main challenges ailing your business, there are ways to research new solutions.
Why do businesses fail?
Business ventures, especially when in their infancy, can take a lot of hits from many angles. Here are some of the most common reasons small businesses fail:
- Product/service is pushed towards the wrong target market
- Market size is overestimated
- Wrong product positioning
- Not understanding the target market segment
- Misleading market research that did not reflect true consumer behavior or needs
Although market research is most commonly associated with being conducting during product development, it can still help identify solutions to boost a product or service’s recognition in the market place.
How market research can save your failing businessAnswer the simple questions.
Many new businesses start out with the goal to provide their customers with a great product or service that will solve all their problems. But, it’s important to think simple and be able to recognize an industry or target market that will keep your product alive.
Keep the following three questions in mind:
- What is your target market’s specific problem?
- Does your business provide a solution to that problem?
- Is your target market well-defined and large enough to support your new business?
Conducting the appropriate market research can answer all three of these questions. And, if you find that the answers are not what you are looking for, you might want to consider adjusting your business plan or model for a better chance of success.Do you need to pivot?
Identifying the need for and making a fundamental change in your business or business model can be referred to as pivoting. Pivoting in business can be dramatic or small; either way, it holds the goal of changing a business strategy to promote growth. Conducting new research to determine how to successfully pivot your business plan, product, marketing strategy, or even competition, can alter the direction of success for your brand. If your research reveals that you need to consider pivoting, study how other companies have successfully pivoted their business.Identify problems in your marketing strategy.
Marketing your product appropriately is part of gaining success. If you choose the wrong demographics, segmentation, or even brand positioning, your product or service might fail. Quantitative and qualitative market research can be conducted to determine your brand’s position against the competition, what your consumer’s want, and how they actually feel about your product.
If your product is already beginning to fail, you might want to start researching these factors immediately, and adjust your business plan accordingly. Market research is one of the best ways to improve efficiency, performance, and get fast results in your marketing campaigns. And, it all starts with understanding the market, your customers, and purchasing behaviors.Identify new lucrative opportunities.
If your business or product isn’t gaining traction in the beginning, you may want to consider using market research to identify new opportunities you may have missed. For example, you might find a new way to brand your product or a new way to sell it to customers. Marketers know we must reach our customers to grow profits, but sometimes it isn’t always clear how to effectively do that. By researching new strategies, you might be able to find new pathways, or better weigh your current options, to gain higher profits.
Obtaining market research on the budget of a struggling business
If your product or service is already experiencing serious challenges, your revenue is most likely declining. Market research might appear to be too expensive of an option for fixing your business. But, in reality, market research might just be the one thing you need to turn things around.
MarketResearch.com’s newly upgraded Profound solution allows you to get the research you need without digging new financial holes. This cost effective solution gives users access to individual sections, chapters, tables or charts from syndicated reports without having to purchase the entire report. This way, users save money and gain the information they need to support their biggest business decisions.
To learn more about how Profound can help you save money and gain the market research you need, check out our website and sign up for a free trial.
Thanks for reading!