How to Conduct Market Research for a New Business
How do you know that your online service-based business will actually MAKE MONEY?
Yes, it's because you have a positive mindset.
Yes, it's because you want it SO badly.
Yes, it's because that's just part of your character -- to be tenacious and to problem-solve.
But, let's get really “left brain” here for a minute…What proof do you have that your business will ACTUALLY make money?
If you're like my clients, you've done your due diligence and market research.
And part of that market research is actually making money, so that’s your proof right there!
Now, you've probably heard about some business coaches that only work with people that have a business up and running and are already making a certain amount of money.
Or some coaches only focus on one specific type of business-building (something that the coach is especially comfortable with, like building lead magnets or creating website copy).
But I like to work with all kinds of entrepreneurs in all different stages of their business.
And we NEVER proceed to anything else unless we’ve fully researched, vetted and actually tested the business.
That’s why my clients are able to grow their businesses so quickly! They have a strong foundation and proof of concept, so you won’t see them struggling for years to get things up and running, or unfortunately, close up shop.
That's why market research is KEY.
You don't waste all that time (and MONEY!) building a glossy website or spending forever in Facebook groups before you even know if people are going to be willing to hand over their credit card to you for that service that you offer.
By doing this in the beginning, it will help you:
Figure out what business to start.
Get really clear on the RIGHT small business idea.
Truthfully, the most successful and profitable online business ideas all start with this critically important step.
So, how do you conduct market research for a new business, so you can make money as an online entrepreneur?
Here are 3 steps for how to do market research before starting a business:
1. Online research
Go ahead and Google to see what kind of competition is out there for you. A lot of online entrepreneurs have this misperception that if other people are doing what they thought about doing, then they shouldn't even bother.
But the opposite is true! If you see that there are a lot of people providing the kind of solution or service that you want to offer, it's actually a really GREAT indicator that there's a demand for it. You can always improve upon the service that somebody else is providing.
Also, start researching the search terms that people use around your topic, and you can look for Google and YouTube search terms that'll help show you there is a demand for a solution to that specific problem.
2. Talk to REAL people on the phone
When people are typing online, they're able to edit what they're saying. But when they’re having a conversation, the real truth comes out!
That’s why it's so valuable to talk to people directly.
First, reach out to some people that have businesses similar to what you’re considering for mentorship. Let them know that you just have a couple of quick questions and you would appreciate it so much if you could take five minutes of their time. You want to find out things like what advice they have for you or what they wish they had known when they first started that would have helped them move forward so much faster.
Then, you want to talk to people that would be potential clients, and you want to find out from them:
A) What’s the gap between where you are and where you want to be? (How do THEY describe what they're going through?)
B) How does that make you feel?
C) What would an ideal solution look like?
D) How would that change things for you? Why is it so important?
E) What has made this difficult for you to solve on your own?
F) How much would you be willing to pay?
3. Make an offer
If you've been actively listening to these people and getting clear on what it is they want, what problem they want solved, how they perceive that, and how they describe that… You should be able to turn that into an offer, present it to somebody, and have them say ‘YES.'
If you're just starting out, you may not have the testimonials (or the “social proof”) to really prove that you are able to deliver the solution you promised, and so you may be charging a low price in the beginning…That's okay!
This is just market testing. You want to demonstrate that a few people will say 'yes' to your specific offer, so that you can prove it's worthwhile to move forward with your business (and gain some testimonials in the process!).
If you aren't sure exactly how to package that offer, you should check out the video where I share three of the top business models my clients are using very successfully to grow their businesses. (You can watch it here.)
Here’s to market testing that will lead you to a really SMART business,
Jenna
P.S. If you’d like my support in helping you and your business grow so much more quickly and easily than if you were to do it on your own, go ahead and schedule a FREE call with me. Together we’ll map out a personalized roadmap that will help you build the right business for YOU.
