Conducting research on a business idea you may have can make you more successful while you continue forward in the process of starting your own business. Remember that ideas are commodities until they start to be developed since value is created based upon how well it is executed. Completing research also provides valuable insight into which idea is the most worthwhile to pursue if you have more than one of them.
Knowing the market in which you are targeting will enable you to include features in your offering that your potential customers want the most. Consider who will be the end consumer of your offering as well as the effects of other stakeholders. The externalized choices that customers may make will shape the demand and the method of utilization of your offering. Research the size of the market for what you are creating. Asking 100 people what they think about your idea. You would want to talk about how you would provide greater value than what is currently out in the marketplace. You may get helpful advice on what your customers will want to see incorporated into what you are developing.
Knowing your competition will help you effectively market your product. An analysis of strengths, weaknesses, opportunities, and threats of your product’s or service’s marketplace will provide valuable information that will shape how you will develop and market your offering.
Some research should be conducted to figure out the appropriate price to offer the product or service in question. If you price your offering too high, you may not be able to attract the amount of customers that you need to scale your business to the next level and succeed in the long term. Likewise, pricing your offering too low, especially for an extended period of time, may create a perception that your product is inferior and customers may not be willing to pay the right price if they become used to purchasing your offering at a low price. A helpful exercise would be to figure out the positioning of your offering compared to your competitors. To keep a long story short, you would compare the features of the products of your offering to your competitors’ offerings. You would then determine the appropriate price to charge for your new product or service from this information by establishing what would be the perceived value of the different features you are offering.