Turning a business idea into reality is the dream of many people, including entrepreneurs. In reality, nothing can guarantee you sure success, but market research is the first step you need to take before launching your product or service.
Here are some ways you can test a business idea before deciding to invest. This is a sharing from Dan Scalco – founder and Chief Development Officer of Digitalux, a digital marketing company in Hoboken, New Jersey (USA), published on Inc.com.
1. Assessing the overall situation
Reading customer reviews for businesses with similar products is a great way to spot problems in your business idea early on. Dissatisfied customers will quickly share their dislikes, and this information can help you identify weaknesses in your own idea.
If your business idea is a tangible product, customer reviews on e-commerce sites are valuable information. Pay close attention to 1-star reviews, as these highlight shortcomings that need addressing and improvement.
If your idea is a service or a restaurant, look for user feedback on social media to see what problems other businesses are struggling with.
2. Running fake Facebook ads
To gauge how interested people are in your business idea, create a Facebook advertising campaign and track the responses. You'll get a fairly accurate picture of how appealing your idea is based on the number of clicks your ads receive.
However, don't let your efforts go to waste. Link your ads to a landing page to gather information about your target audience. This is the database of potential customers you need to market to first when deciding to turn your idea into reality. Politely inform customers that the product/service is nearing completion and that they will receive an email notification when everything is ready.
3. Form your own survey team.
Hiring a marketing company to conduct focus group surveys is expensive, and since your budget is usually limited at this time, it's not a good option. Fortunately, social media is giving you the opportunity to reach your entire network of friends with just a short status update.
Tell your friends that you're testing a business idea and need some feedback. The survey group shouldn't be limited to friends and family; it should include your entire circle of friends for more objective results.
After gathering a sufficient number of "volunteers" suitable for your research, conduct a quick survey (via email) for them to answer. Avoid leading questions; instead, ask direct questions to obtain the most honest responses. The information you need to collect includes: Do people have a need for the product/service you intend to offer? How do people feel about existing products/services? If they had to pay for your idea, how much would they pay?…
4. Role-play as a customer
Posing as a customer is an incredibly useful way to obtain inside information about competitors before starting your own business.
First, make a list of a few potential competitors and research how they operate. You'll gain information about their customer service, sales processes (what works and what doesn't), details of their products/services, pricing, and even their marketing strategies.
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