A new year is fast approaching with new year resolutions to be made & it is at this time of year that many people start thinking about those niggly ideas that have been bugging them or swirling around in their head. Could it have potential & could it be worth leaving their day job to pursue?
Figuring out whether the idea has potential & commercial viability is a crucial first step & one that is often sadly forgotten.
Really understanding whether there is in fact a market for your product or service is vital.
You need to understand how big the market is, who plays within in & understand very clearly who it is you are going to sell your product or service to – who are these people, how many of them are out there & what the potential moving forward is?
We worked with a client recently & they were quite clear from the outset around who they were going to target with their new product. They had a very defined age group in mind & they were adamant this was the right group to go after. Turns out after we did some work around market sizing & analysis for them as well as consumer research both on & offline that the group they were targeting was not as big or as valuable as they had thought. We identified a much more valuable target group for them to go after who not only spent more on average than other age groups but were also willing to pay significantly more for the product under review given its product credentials!
The moral of the story is don’t just assume there is a market for your product or service. Go out & do the due diligence & look at the market, see what is happening within in, see what problem your product could solve & do some research amongst the people you are going to sell your product or service to – what do they think about it, would they buy it, if not, why not etc.
How else will you know if your product has commercial viability & how else will you know the true potential for your product & service & the opportunity that exists for it in real terms?
We would be more than happy to help you understand whether your new business idea has legs & if it has how big those legs are!!
In the meantime, we would like to wish you & yours a wonderful Christmas & health & happiness for 2016.
Colette & the team at Real Insights / www.real-insights.com