Why Your Startup Needs A Market Study
When anyone has a big idea, they’re likely solving a problem they have and think others have as well. But how do you know? In the beginning, you don’t. So when things first startup, you’ve got to make some educated guesses about functionality, usability, and even about who your ideal customer actually is.
However, you can’t guess forever. There’s got to come a point when you start to actually know because as much as your best guess could be an awesome one, you can never see the big picture without the input of others.
There are two big reasons your startup needs a marketing analysis study: you can’t optimize your work if you don’t really know what the market is looking for and you need that data to prove your business’ viability to potential investors.
You can’t optimize without data
Simply put, you don’t know what you don’t know. Many a startup has failed because they assumed they knew exactly what people needed (but never stopped and took the time to ask!) You’ll be very likely to get stuck in either marketing or sales down the line if you don’t do a market analysis study early on.
Having the data from this kind of study is essential because it helps you learn and that will help you grow. Asking open-ended questions can help you improve your product and market it effectively. Some important questions to ask for optimization include:
What do you like about this product/service?
What is it lacking that you absolutely need?
Is this something you would pay for? How much?
What messaging resonates with you? What images?
The answers to these questions will help you optimize everything associated with your marketing from branding and messaging to website copy and social advertising. Improving these things can help to improve your conversion rates, making your company more profitable and more desirable for potential investors.
You need data for potential investors
When you’re ready to go get funding, investors are going to expect that you understand your business inside and out—and that includes how to market it effectively to generate revenue.
A market analysis study will help you get incredibly clear on who your audience is and how you can best convert them. After your study, you’ll be able to test a hypothesis and present a clear picture to potential investors on how much it will cost to acquire new customers and, in turn, how that cost plays into your ability to generate revenue and scale.
Get started on your market analysis study today
Now that we know your market study is something your business can’t live without, it’s time to get started. The best place to begin is by asking yourself what you need to learn in order to improve your product and the way you get that product in front of your ideal customer. If you need a little more help, download our Quick Guide to Conducting a Marketing Study to get started.
Meet the Author: Shauna Armitage
Shauna is a Marketing Director or Fractional CMO helping early-stage startups scale with effective strategies, creative solutions, and unparalleled integrity by making the most of small budgets for maximum impact.
As a vocal advocate for women in business, Shauna is on a mission to redefine what it looks like to be a working woman and to support other women doing the same. She spends her free time traveling with her husband and four kids while drinking Coca-Colas. Connect with her on Instagram at @shauna.armitage.