How to avoid online business failure? Market research essentials – Founders Kitchen Sink

because of my technical background people asked me to make the project wooden together as a co-founder and when it comes to that my potential co-founder my potential partner introduced me the idea which is usually feature oriented and he or she has no clue about the market it will

operate well sometimes they have knowledge about the market capitalization but it's usually to use to draw the picture of how successful and how rich will become when we do this project together there was only one time I've agreed to become a co-founder it was Jason Alexis who came

to me and he explained me the product that he want to create he introduced me with the results of the market research he performed he showed me what is the market how it operates and who the kind is he made it so well the numbers add up so

I agreed and now we have 60% of trial to paid conversion rate and we've been working year and a half to achieve that the start of each project is to know whether there is a market for such product the market research is not a Holy Grail though it

doesn't mean that if you make the market research properly you'll succeed no matter what but it increases your chances significantly and there are many information that market research delivers but I'm mainly interested in the following number one what is the market size how many potential clients are really

out there this is especially important to know if you are aiming a particular niche or niche sometimes in some cases it can be very easy to learn what is the precise number of potential clients for example when you create a product or service that is going to be

used by customers of existing company for example if you make a product like special reports for Google Analytics users then number of potential clients will equal the number of Google Analytics users simple as that in other cases it can be very difficult to achieve that level of accuracy

however you should still aim a narrow range like between ten or twelve thousand of potential clients remember to use always the lowest estimate that you will find number two what is the situation in the market now and how it looks like in the next couple of years business

is not something that you do overnight and you need some stability and the time to grow learn whether you still need it on the market in the next couple of years look at trends and situation of your competitors there are some products that have short lifetime on the

market and they vanish after a year or two number three who is the competitor how many businesses are out there who operate on the market that you are trying to enter and what is the market cap this is an extremely valuable information as it will give you an

idea with whom you're going to compete also you'll probably learn how to stand out what this work to focus on is our channels that your competitors use to reach the client depending on that you might visualize what is the cost you'll have to make to use these channels

also I'll try to learn what is the market defragmentation I mean here whether there are few big companies or there are several or many small players and none of them has a dominant position and finally last but at least number four who is the client you might know

this email or a called contemplate that some salespeople still use hello I would like to speak with a decision maker well it's not that easy depending on what your product is and who is going to use the famous decision maker not necessary have to be a director manager

or CEO in most of IT companies for example it's a team who makes a decision whether to purchase a product or not it means that you may be on the market where the need of particular product comes from the bottom of the company this makes impact on how

you'll make an advertisement of your product and how you'll reach the clients the market research should bring that information to you as well as the profile of your ideal customer so this is set of basic information I must have before I start doing anything related with my product

because these information will define it if you do the market research by yourself at some point of time you might feel overwhelmed and all of this and you may lose the idea of what you are actually doing so if you have a budget consider hiring someone to make

it for you market research can be resource it there are many companies that provide such information and big companies are spending a lot of money on consulting so it can work for you as well but on a smaller scale of course and it should show you the importance

of this if enterprises are spending that money on market research it means it's worth it now you may find a one-man person band market researcher or you may use services of small or medium company the prices vary but you should be prepared to spend something between two to

five thousand dollars just remember to use the company that has a knowledge and experience on the market that you want to concur when you decide to outsource the market research please remember about one thing it doesn't work the way that you go to a company with your question

and they come back to you with all the answers market research is not a business development you must provide input data your contractor must know what you are going to achieve and what is going to look for the more information you provide the better and there are some

companies that will ask you a very specific information and you may have this impression that this is something that they should provide and they are asking you to do the job they should do but the fact is that if you find such company it means that their dig

very deep and they'll come back to you with very detailed information and this is something what you want to achieve right so regardless whether you decide to outsource the market or not do it by yourself it will take about two weeks of your time it will require a

lot of creativity it will require you thinking outside of the box but this way you'll be able to compare the results and have a better perspective what do you think and what is really out there and this is where the project starts so what I'm going to do

next I will start working on my market research for my estimation tool and I'm sure and I'll show how I'm going to do it

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