It’s no secret that business startup’s face an uphill battle in the early years. It is quite well known that most new businesses will fail in less than two years. And we’re not just talking about starry-eyed dreamers, working sidelined startup’s on weekends and lunch breaks, as major startup’s with serious funding is often doomed too.
But then again, research also reveals that most startup’s fail for one simple reason, a lack of proper research and planning. With so much competition and so many well-executed ideas out there today, only, the startup’s with a razor-sharp focus in the right area and direction will survive.
So, what is startup business research?
The angle is a bit different than the usual approach. Most consultants help in writing business plans or they research and develop a business plan on your behalf. Stop just here, in my view a waste of money. What will you know about this so-called new venture if you were not involved in the research and the writing of the business plan? Does it make sense to you? hello!
The focus should be on the initial research before writing the plan. So, the startup research part is split from the actual writing of the business plan. This research also focuses on trying to match the market with your business capability, and that makes our process different.
Why do a startup business research?
Business and market research is essential for a startup or the survival and growth of your business. It enables you to improve the competitive nature of your business and reduce your risks. Secondly, your future business should have sufficient capacity to engage with the market successfully, meaning that your business should be competitive from the start.
Starting a business always involves some degree of risk; good business and market research will help you reduce that risk. A business and market research allows you to identify threats and opportunities in the marketplace and provides the information on which you can make informed decisions. The more accurate the information the better the decision.
Business and market research, therefore, reduces the risk involved in making these decisions. It also reduces the risk of not being able to make decisions because you did not have the information at hand.
Market research helps you to:
- identify new products or services
- spot or anticipate market trends or changes
- determine if customers are satisfied, and if not, what is wrong
- keep one step ahead of your competitors
- spot trends or warning signals in your own business
- decide which advertising medium works best for your business
- keep up to date with new technology in your industry
- evaluate if a new idea is likely to be viable or not
Business and market research is, therefore, the business tool that helps you reduce the risk that a new business idea will fail and helps reduce the risk of being in business. In short, it helps you both stay in business and build a more profitable business. However, in most businesses, very little research is done. This is because people are unsure how to perform such business and market research properly.
How to conduct a startup business research?
The method we use to transfer our knowledge and experience is based on a combination of “Project-Based Learning” (PBL) and “Experiential eLearning” (EEL) which is the process of learning through experience, and is more specifically defined as learning through reflection on doing.
This method allows you to gain knowledge and skills by working for an extended period of time to investigate and respond to an authentic, engaging, and complex question, problem, or challenge, which is implemented to overcome the challenge and helps to develop critical thinking, problem solving, change management and implementation skills.
So, in this project you have the following tasks to complete to achieve the outcome below.
- Task 1 – Determine the impact of your product and pricing structure on your business
- Task 2 – Determine the impact of the market demand
- Task 3 – Define the impact of your process layout, and business location
- Task 4 – Determine the impact of your organisational design
- Task 5 – Identify your strategic key partners and suppliers
- Task 6 – Identify actions required to respond to competitor opportunities and threats
- Task 7 – Determine the impact of the macro environment on your business
- Task 8 – Review your startup research information and complete a SWOT analysis
What is the outcome of this project?
Once you have completed the entire project, you will have your Business SWOT Report available to be used in the next step.
You should have completed the business idea / opportunity project before you proceed with this project.
What is next?
Once this project is complete, start with the writing of your startup strategic plan project to assist you in funding or implementation purposes.