Startups are often built around completely innovative ideas that have not been tested in their markets. Too often, startup founders put everything into one idea just to find out there is not a market for their product or service.
Transforming an Idea into a Profitable Company
Entrepreneurs that are caught up in the magic of their idea soon find that by failing to perform adequate market research, their idea is nothing more than that. The following tips will help you successfully discover if your proposal will work in an already crowded market.
They Study Successful Competitors
There’s nothing quite like a lack of demand to tank a startup before it even gets off the ground. This is why entrepreneurs should study their competitors. The brands that are thriving prove that there is a demand for a specific product or service. Instead of viewing this competition in a negative light, entrepreneurs can learn from their successes.
When a product or service has already been put out into the world by competing brands, entrepreneurs know that this product or service is already well understood and likely already has a decent amount of demand. While entrepreneurs that come late to the game know that they have to build their audience, at least they are aware that there is money to be made in their niche.
They Research Search Traffic
Researching the traffic on popular search engines can point entrepreneurs to the most searched keywords. This is a great way to gauge demand when developing a business idea. For example, Ahrefs, a keyword research tool, shares that at least 27,000 people search “Photoshop alternatives” each month. Similarly, 4,000 people are looking for an “automatic lawn mower.”
These types of searches are the best ways for entrepreneurs to generate ideas for a successful business. Ideally, business owners will be able to find a niche that already has a high amount of demand.
They Test their “Marketing Promise”
To sell a product or service to consumers, entrepreneurs must first market the promise of what their business can do for consumers. Using testimonials and sales copy, entrepreneurs must work to convince potential customers that the solution they’ve been searching for will be found in their startup.
Beginning a startup is an uphill battle. Entrepreneurs that are new to the process should do their due diligence before promoting a product or service that is lacking in demand.