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Startup Advice

How to Determine Is There a Market for Your Business Idea?

One of the biggest risks of developing a startup is designing the wrong product or service. Imagine when you have spent months, not even a few years, only to find out that what you develop will not be successful.

So, what is the most appropriate way to test and validate the market? Here are four tips.

First, make sure consumers are willing to pay. Don’t be one of the founders who builds their product on the assumption: “If 100 people say they like my idea, they’ll buy my product after I make it!”. Liking something is not the same as paying for it.

According wpriders.com, the easiest way to find out how many people are looking to buy your product is to create a validation website to get registrations or pre-orders. This website will be your main source of information in terms of why users buy or not buy your products? How often your customers use your specific products or features? They understand your product as well as they should? If you determine the price, it’s truly reflects the value you provide for them.

Second, make an impression. You only get one first impression with every customer who interacts with your product/service. The stakes are very high. How will you make a positive first impression when 100% of the interactions take place online? This is the tips from startupgrind.com:

• Show your website some love.

• Be strategic with social profiles.

• Have a PR plan.

Third, adjust to market needs. Before you start market research, it’s a good idea to meet with a consultant, talk to a business or marketing lecturer at President University, and others. These resources can offer guidance and help you with the first step in market research: deciding exactly what information you need to gather.

In principle, according entrepreneur.com, market research should provide you three important information:

• Industry information. You look for the latest trends. Compare industry statistics and growth.

• Close up of consumers. On the consumer side, your market research should start with a market survey. A thorough market survey will help you make a reasonable sales forecast for your new business.

• Close-up competitions. Based on a combination of industry research and consumer research, a clearer picture of your competition will emerge. Don’t underestimate the number of competitors out there. Keep an eye on potential future competitors as well as current competitors.

Fourth, not an instant job. Validating the market is also not a job that can be done immediately. In business continuity, as quoted dailysocial.id, the market validation process must be carried out—exploring  the potential for new innovations and, most importantly, finding new sources of income.

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