Monthly Archives: May 2014

Market Research – Do I Really Need That?

Up to 95% of new products fail in the market.

The #1 reason for this is not having enough customers.

Advertise More?

Market Research or AdvertiseNow you may think, that’s an easy problem to solve. I just need to do more advertising, or maybe tweak my Marketing Strategy a bit. But the reality is what they’re really saying is:

“Nobody wants what you are selling!”

As the inventor, we believe we’ve got the best thing since sliced bread. But remember, we’re biased. After all, this is our baby, of course we think it’s beautiful.

The reality is:

Market Research - Is this what you want
It May Not Be So!

 

My Customer Wants What!

Without taking the time to do the Market Research and validate the idea, we run the risk of putting a lot of time, effort, and money into something that isn’t going to sell.

I had an interview with a prospective client last summer. He had an idea for a new Laptop Security Device. During the discussion, I asked who the target market was. His response was “anyone with a Laptop.” When I asked about Market Research he said he hadn’t done any yet, but he knew everyone would need one.

Need doesn’t always translate into want. Even when we know we should do something, we often neglect to do it for any variety of reasons.

I convinced him to try out some simple Market Research and he agreed. Based on our discussion, it probably went something like this:

  1. How many people have Laptops?
  2. How many are concerned about having them stolen?
  3. How many are willing to spend money to address that concern?
  4. How much money are they willing to spend?

I’ve tried this very test at several network meetings and I almost never get to the last question before everyone has their hands down.

He must have taken my advise, because when I talked with him about three months later, he was onto something else.

Test Drive!

Market Research is Test Driving before you buyOne of the great things about the social media environment that exists today is you can carry out some basic Market Research with minimal time, effort, and cost. There are lots of free services available that let you create a survey form.

Most of us have a at least 100 connections that we can put this out to, and with a little cooperation from these first tier network contacts, we can potentially reach a few thousand people. If only 10% of these people respond, you can get a sampling of 100+.

Now this is in no way a comprehensive Market Research Survey; however, it is good enough to determine if your in the right ball park.

By spending just a little time and effort on Market Research you can greatly increase your chances at having a successful product. But you need to be willing to listen to your prospective customers. After all, their the ones that are going to be buying your idea, not you.

 

© 2014 Creator Consulting

The Business Plan

This past week we submitted our Business Plan outline for Round 2 of the BCIC New Ventures Competition.  I’ve put together a lot of plans over the years, but everyone is different and each has its unique challenges.

Through my Consulting Business, I get to talk with a lot of people that have an idea for a product or service. Almost all of them have a very narrow view of what’s actually involved. This can be a very dangerous place to be in. Not understanding the scope of what you need to do can end up costing you a lot of money. I know of more than a few people and small businesses that spent tens, in some cases hundreds of thousands of dollars Continue reading The Business Plan

Value Proposition & The Business Model Canvas

A strong Value Proposition is the driving force behind any successful business venture. The Business Model Canvas helps focus on the Value Proposition not the product or service.

Last week at the BCIC New Ventures Competition seminar I learned about developing a Business Canvas Model. The term wasn’t entirely new to me; however, it was no more than a single page template and a name. The Business Canvas Model forms part of the write up for the Round 2 Submission in the contest. As I’ve been working through this I’ve come to realize just how powerful a tool it is. Continue reading Value Proposition & The Business Model Canvas