Start your Business on the Cheap: Why Bootstrap?
Market Research on the Cheap: John Carini – Video 2
This video will cover how to do market research. Let’s first assume you don’t have tons of money to do formal market research. Perhaps you are bootstrapping the business or you just have an idea and you want to know if it is viable. Let’s discuss how you can do some research on the cheap.
I know this is obvious but start by Googling your idea (www.google.com). Figure out the term your potential customers would search for and search for it. For example you could search for Small Business CRM if you wanted to build that. This will likely show you your competitors. Write down the keywords you googled – you will need them later. Often times having competition is good. It means there is a market. Also look for flaws your competitors might have – one way to do this is to look at their product reviews. If your biggest competitor is a juggernaut that could be a problem. If there is no competition or you think you have a leg up on the competition then you should investigate further and see how many people are already searching for your idea.
I think the easiest way to do that is to use the Google keyword planner (https://ads.google.com/home/tools/keyword-planner/) it’s part of Google Ads, but it’s free to see how many searches there are. It will also tell you how much it would cost to buy an ad for that keyword. The best case scenario would be if you Googled there we no competitors but there are loads of searches. But if there are no searches for your idea or there are loads of competitors and the Adwords keyword is very expensive then your idea might be difficult or expensive to market.
But perhaps the best research is to try to sell the product up front. If you know people and companies that might buy your product approach them. Start by asking them for “advice” – ask them what they think about your idea and if they would buy it. If they are very interested maybe you could get them to pay up front or agree to pay once it is ready.
Based on these factors hopefully you have the market research you need to determine if you should push forward. Definitely tune into our next video that discusses how to execute your idea on a budget.