market research Archives - High Performance Coach Cindy Donaldson

Market Research 101

Leave a Comment / Entrepreneur, Featured, Marketing, Must Read Blogs, Uncategorized / By Cindy Donaldson / May 31, 2018 / business idea, Cindy Donaldson, deliverables, feedback, launch, market research, marketing, new business, product, red barn consulting, rpice, scale, service, Target Client Profile

Just because YOU think your business idea, product or service is brilliant and worth a gazillion dollars doesn’t mean the rest of the world will. The sad truth it, something is only worth what someone else is willing to pay for it. Ask any Real Estate agent – they deal with this on a daily basis.

When it comes to launching a new business or a new product you have to test it. That means market research. How that is done will vary dependent on your product or service. If you’ve just developed the latest greatest ice cream, then you better hit the streets and give away a lot of it, ask for feedback. Rinse and Repeat. Next you need to do tastings in stores, farmers markets, flea markets anywhere you can get in front of your target audience. Get feedback. Rinse and repeat. If you have a target price in mind – ask the people who liked your fabulous treat if they would be willing to pay that price. If the stars align – you are ready.

Say you have a service – like what we do here at Red Barn. We are a business and marketing consulting firm. When we decide to tap into a new market or launch a new program we do a crap load of market research. We will do workshops, bring in beta clients, write articles, talk to people – all the while collecting valuable data. Just like the ice cream we are not only looking for the good feedback, we want to hear the negative. We want to know how we can improve.

Next you really need to understand your market – how large is your potential market base? Who is your ideal client? If you need 1000 customers to break even yet in your research you find you only have 2 that would be potential clients, well – Houston we have a problem.

Here’s the process we go through

Identify our Target Client Profile. We are very specific on the socio and psycho demographics of the people, business etc. I want to know every detail – do they like dogs, do they live in the US, what is their income, do they travel, what is their age, did they go to college…the more details the better
Crystal Clear on our Deliverables. Based on our market research we hone down on exactly what the customer WANTS and how they want it delivered. So what does their customer experience and journey look like.
We make sure we are profitable. Giving a good deal isn’t worth it, if you are losing money. We may offer extra perks or even slight discounts to our early adopters, but our cost…is our cost. We spend a lot of time ensuring that we understand our COGS and our time. If we aren’t in a margin that works, then the project doesn’t fly.
We want to spend time with our early adopters to ensure things are going smooth and we scale slowly. The worst thing any company can do is scale to fast, and get into a situation where you can’t deliver what you promise.

Morale of the story: Do the research before the launch. This goes for launching a new business or a new product. The process is essentially the same. If you don’t, you’ll end up with the proverbial egg on your face.

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10 reasons businesses fail

I’ve owned a few businesses in my day. Some have failed, some have been (and are) successful.

The failing part sucks – no doubt about it. You never enter a business thinking it’s going to not be there in a year or two – kind of like a marriage. But it happens.

Here’s what I’ve learned from my own failed ventures and from the myriad of business owners I’ve worked with over the years.

Business Partners. When they work it’s beautiful. When they don’t, it can be an ugly divorce in the making. Just like a marriage, you need a partner who has the same core values, the same vision, yet you need to complement each other. There must be trust, transparency, and all partners need to be on the same page when it comes to running the business. Have a partnership agreement that details who is doing what and how everyone is getting compensated. Trust me on this one. Many businesses fail because the partnerships fail.
Capital. You need money to survive. Cash is still King. If you are thinking of going out on your own, you need to have cash in the bank for at least a year and/or some VC money to infuse into the business. Without capital, it’s hard to grow.
3 P’s. Policies, Process & Procedures. You can’t wing it. Have a process. Adjust as needed.
Cabinet. Lawyer, Accountant, Tax Advisor & Insurance Broker. Don’t ever skimp on these – Ever. Don’t think DIY is a smart idea – it never is.
Clear WHY. You have to be crystal clear on your vision – your WHY. What are you bringing to the market? Why should someone buy from you? What is your unique value prop?
It has to be a viable business. Not all great ideas are viable businesses. Do the market research and test.
The need for perfection. Go to market. It will never be perfect. Do 1-6 – that’s just smart business, but go to market even if things aren’t perfect. Your website doesn’t have to be the grand vision you have – it can be 1 page. You don’t need a staff of 100 – start with 1, etc.
Hire the RIGHT people. They need to fit into your culture and see your vision. Resumes and skills are second to their core values.
You need to change with the market. Innovate or die.
Ethical. Now you’ll say there are a ton of unethical business owners who are making millions. True, but they won’t survive the long haul. Besides, do you really want to be that person? Do the right thing. Karma is real.

My first business failed miserably and cost me dearly. The reason was #1, #4, and #10 (on my partners’ end). It was a mess. If you are thinking about heading out on your own. Call me first – I can save you a ton of headaches!

Cheers to us Entrepreneurs!