Don’t Neglect Or Forget Business Research
This article is about business research.
You might not think you need to do any research before jumping into your latest venture, but you should. I’ll explain why below.
For those of you who think, “that’s a good idea… why would I not do business research?” You can skip ahead to the next section. I’ll give you a quick and easy to-do list for business research that’ll answer most of your questions.
Genesis Of This Article
Yesterday’s article was a little rant-like. Essentially though, the article boiled down to this: one of the worst ways to get started in business is to try and go into the business of selling starting a business to people.
Unfortunately, it’s what most young guys try because it’s what life-hackers tell them to, and it’s also what they’re passionate about. (That’s not a bad thing.)
I completely forgot about writing this article until the last minute, and was trawling my usual spots looking for something to write about. (I’ve got a few topics written, but I’m saving those for next week.)
I found this:
This is exactly what I talked about recently.
Now, this guy probably isn’t a scammer. From what he’s written, it seems he wants to create something of value; a site where all the information about starting dropshipping businesses is collated and condensed.
Fair enough.
The problem with this guy’s business idea is that there was no effective business research done before or after he had the idea. You can tell this from some of the things he says:
- “I wondered if there was a site about this…”
- “Is there any demand for something like this?”
- “The info I’ve seen is useless”
- “Everyone is reluctant to talk about details”
- “I’d like the site to cover a range of different things”
Now, I might have got the measure of this guy completely wrong. However, those are the sorts of questions that you might want to ask yourself before fielding an idea.
If you need to ask a forum whether a website exists, you haven’t done enough research. That’s a Google search away.
If you need to ask a forum whether there’s demand for a product, you haven’t done enough research. That’s a Google search away, or you could look up the listing on Amazon.
If the information you’ve found is all useless, then you need to find out why. What is it you’re looking for? There could be something there, but chances are there’s a hidden barrier to entry that you’re not seeing.
If everyone in a niche is reluctant to give out information, there’s almost always a good reason for that.
The fact that all of those questions could be solved with a simple Google search points me towards the idea that this guy hasn’t done any research. Added to that, he’s asking whether there’s demand for a website in what must be the most crowded market on the net outside of porn.
You Must Do Your Business Research
When I was twenty, I thought I could skip the boring business stuff and forget about research. My products were going to be awesome and of course people were going to want them. Besides, if I got it wrong, then it was no big deal.
I was an idiot, obviously.
Your pre-start-up business research should be as in-depth as you can manage. You don’t need to spend thousands testing a product’s viability (although you can) but there’s absolutely no harm in sending out emails asking people what they’d be interested in. There can be a lot of harm in not doing this.
You can waste time, money and effort. You can also sap your motivation and willpower if you chase too many terrible ideas.
Enough With The Grumpy Grandpa Rubbish, What Business Research Should I Do?
If you’re like the guy above; and struck by a spear of inspiration about an idea, then you can do the following:
- Google every possible permutation of your idea. “Rubber Duck Patterned Jeans” in a search will in most cases throw up what you’re looking for.
- Do this with Facebook, Amazon, etc. as well.
- List the fifteen top questions for your product or service. “How to know if online clothes will fit me?” or “How much does a UK copywriter cost?” or whatever.
- Google search those questions too.
- Find competitors in your niche. There will be some. Even if you’ve got a unique product, there’ll be something attempting to fit the need already, even if it’s not your solution.
- Read relevant sites for your market until you know what you’re talking about. You should not be caught with your trousers around your ankles when you say, “I’ve spent a year building this product” and someone says, “Oh… you mean it works like X” and it turns out there’s been a solution all along.
- Read the questions on forums and research their answers until you can comfortably answer them yourself. This is how to become an “expert” in the field.
- Before you launch a product, email some of your prospective customers and ask them whether they a) want your service and b) how much they’d pay, both hypothetically speaking.
These things will take you a maximum of a few hours total. They’ll give you more knowledge of the market you’re entering than the average copycat entrepreneur will have. They’ll also ensure you don’t waste your time building something that’s not viable.
Final Thoughts
Business research isn’t terrifying. It’s not overly complicated.
Actually, I say that as a person who isn’t a venture capitalist Silicon Valley type businessman. That sort of business research thing might be incredibly complicated… I don’t know.
Assuming you just want to dropship some products, start a small service or build an online website, business research doesn’t have to be terrifying. It’s mostly a case of making sure there’s nothing obvious that’ll derail you.
You do need to do it though. Business research will save you time, effort and money. It’s a few hours out of your life, and if you don’t waste months on an idea that’ll never work, it might be the most valuable hours you ever work.
Speaking of which, business research is not keyword research or anything you can automate. It’s a process where you have to think, “Is this viable?” and come up with an answer. Again… don’t short-change yourself.
If you follow the simple guideline and Google a few things, ask a few questions and maybe reach out to some other guys that could be your partners/customers, you’ll find that that’s enough business research, and once you’ve done it you’ll be able to move ahead with confidence and vigour.