It is critically important to do primary market research in ALL phases of a startup (pre, during, and post). When you are at the ‘idea stage’, this should one of the first things on your ‘to do’ list (even before the business plan). By primary market research, I mean actually going out and talking to people who work in the same industry you are hoping to enter (competitors, suppliers, distributors, etc.). This may sound a little bizarre. After all, why would a company want to give advice to a potential competitor? However, you would be surprised at how open people are to discussing their industry with you. You absolutely need to get concrete feedback on an idea in order to create something tangible out of it. There is also a fear among new entrepreneurs that people might ‘steal their idea’. Consequently, they elect to keep quiet about their idea unless absolutely necessary. As my small business professor once told me, for an idea to transform into something real, you have to discuss it with as many people as possible. That’s the only way to find out if the idea is viable or not. Naturally, you have to be willing to accept the truth, even if it hurts. It will save you bigger headaches in the long run.Besides, you need more than just a great idea to build a successful business. If it was that simple, every person with a great idea would be a successful entrepreneur.
Primary market research could also mean going out and talking to consumers. What are their likes and dislikes about a particular product or service? This will help establish if there is a particular need in the market that is presently not being met. It can also give you ideas for new features you can add to your product or service. This type of research can be done through surveys, focus groups, random interviews, or even cold calling.
Whether it’s talking to industry participants or actual customers, a business owner always needs to stay connected on a grassroots level. The business environment is constantly changing and you need to stay on top of the latest trends. If your business is not constantly evolving, you are losing ground to those who are.
Last week, I talked about the principles of time management covered in an excellent book: “The 7 habits of highly effective people” by Stephen Covey. I went over the four quadrants in which we can place any and all of our activities and how leadership is focused on Quadrant 2 activities (those that are important but not urgent). The book also talks about how we should identify the different roles we have in our lives (e.g. entrepreneur, father, husband/partner, etc.) in order to establish our priorities. We can then identify a few key quadrant 2 activities for each role that we hope to accomplish over the course of following week.
This week, I will summarize the point of view of another great author on the subject of personal productivity. In his book, “The 4-hour Workweek”, Tim Ferris uses an interesting title for his chapter on time management: “The end of time management” (how can anyone resist after reading such a title?). He makes an interesting distinction between ‘being effective’ and ‘being efficient’. Read more »
I was at a networking event a few months back and while having dinner, I happened to be seated next to a bright young man who was completing his MBA. We talked about many things, one of them being entrepreneurship. He was interested in this topic since he planned one day to launch his own business. Outside of school, he was very passionate about tennis. In fact, he had been giving private lessons for several years and he was now interested in turning his hobby into a full fledged business. So what was holding him back? Read more »
Tags: creativity, financing, problem solving, starting a small business
In the area of entrepreneurship, I often seek out advice from people with more experience than me. Naturally, I give their opinions a lot of weight since being a new entrepreneur, I can’t really counter their advice with experiences of my own. A dilemma arose when I found that I was receiving conflicting advice from my ‘circle of experts’.
The topic of controversy was sales strategies. I wanted to know the best ways to generate sales for a new business. The first expert told me to use the direct mail and cold calling methods. “Sales are a pretty much a numbers game”, I was told. “You make X number of calls from which you can expect to book X number of appointments, leading to the final result: X number of contracts. Typically the conversion rate is around 10%, which can vary depending on the industry, the quality of the leads, etc.” I was eager to apply this new knowledge but doubts began to surface when I spoke to the next expert. Read more »
Tags: business advice, entrepreneurship, sales strategies, starting business
There was a great article in the Financial Post a few months back about the importance of defining a target market when selling a product or service. An entrepreneur will sometimes try to sell a mass audience because their product or service is so ‘revolutionary’. There are several problems with this approach: Read more »
A survey is a great market research tool with many uses: evaluating customer satisfaction, discovering areas for improvement, and even testing the level of interest for a new product. It is an objective way to gather and analyze responses. Customer satisfaction is particularly important in this day and age. Disgruntled customers no longer just share their frustrations with their close circle of friends. Now, they also go on Twitter, Yelp.com, and YouTube and make their complaints public. Read more »
Tags: complaints, customer satisfaction, market research, marketing, online surveys, starting a small business
I’m perhaps exaggerating just a little when I say ‘zero cost startup’, but the cost of starting a business has gone down drastically over the years, especially when it comes to IT. Many of the things that used to cost a fortune before is now available for free or even a small fee. Here is a list of free / low cost tools I’ve used or am planning on using in launching my startup. Read more »
Tags: cost savings, financing, saving money, startup, Technology
About a month back, I attended a great workshop by Tina Serano, co-owner of Beavertails, the company behind the delicious pastry that goes by the same name (and no, it’s not actually a beaver’s tail…it’s just shaped like one).
Tina had some great quotes on the topic of branding and small business in general that I wanted to share with my readers. Branding, as its name suggests, refers to a company’s brand in the marketplace. How do customers view the company? Why do they choose to do business with them? Is it because of their low cost? Quality? Fast service? Read more »
Tags: branding, corporate identity, marketing, starting a business
For four days next week at the Complexe Desjardins in Montreal, people can take advantage of free personal legal advice. The individual consultations are part of the Montreal Bar’s annual Visez Droit event and will be available Monday to Thursday from 9:30 am to 4:30 pm. People are asked to bring along with them any legal documents that are relevant to their inquiries. The same event in 2008 attracted more than 1,000 people.
Tags: entrepreneurship, legal services, starting a business
HP Canada has a great new offer to help out small businesses looking to invest in technology. There are two variations: the 0%, 12-month promotion plan allows small businesses to purchase their equipment for $1 at the end of the term. Alternatively, they can opt for the 0%, 30-month lease plan, which gives them a fair market value purchase option at the end of the term.
Both offers allow the financing of products between $5,000 and $150,000, and are available until April 30, 2009. The minimum amount is a bit annoying, but it’s still a good deal. As well, the promotion targets ‘established’ small businesses so start ups might not necessarily be eligible (though it doesn’t hurt to try). For more information, check out their site.
Tags: entrepreneurship, leasing, starting a business
