So, there’s a common misconception among small or part-time entrepreneurs that they are too small to need market research. That’s like heading out on a road trip without any sort of map. Or, more accurately, without your phone’s GPS. Not great.
Market research is not just a tool for the big players; it's the foundation on which successful businesses, regardless of size, are built.
Keep it simple
Doing some simple market research for your business is not as daunting as it might seem, either. Many entrepreneurs shy away from market research, fearing it might be too complex or time-consuming. Maybe thinking it’s something they need to hire out. But the truth is, market research can be simple, straightforward, and incredibly enlightening. Easy methods, starting with this 4-point framework, can yield valuable insights. These insights can help you refine your product or service, ensuring it resonates with your target market.
Define your wedge
We’ve talked about the concept of defining your "wedge" in previous posts – that unique position within your niche where you can grow in a focused way. For small entrepreneurs, identifying this wedge is a game-changer. It's about pinpointing a specific segment or need within the broader market that your business can uniquely address, one that’s often overlooked by larger competitors.
Here are some very practical reasons for doing market research:
1. Clear Focus: A little market research helps you understand precisely what you offer and to whom, eliminating the scattered approach common in small businesses.
2. Get Unstuck: Sometimes ‘stuck’ just means not knowing what to do next. Check out what’s going on in your niche and find next-step inspiration.
3. Stand Out: By focusing on a specific area (aka, your wedge), your business can stand out, even in a crowded market.
4. Smart Use of Time & Money: So this is a big one. For part-time or new entrepreneurs, time and money are often limited. Even if they aren’t (kind of unlikely), no one wants to waste them.
The 4-step frameworks isn’t just for newer businesses either. If you’ve been in business for a while and feel like a pivot is in order, market research can help you, too. The ability to pivot - wisely - is crucial. Understanding your next wedge, in this case, allows for agility - you can quickly adapt to market changes, customer needs, and emerging trends.
Think of market research as your business's growth engine. It opens up new paths, helps dodge those business potholes, and keeps you rolling smoothly towards your goals.
Use a framework
My goal in laying out a 4-step framework is to help you create an easy process for looking out into your market to get a better understanding of what customers need, and getting a clear picture of how you can provide it with your offers. It’s an organized and repeatable way to stay knowledgeable about your niche.
So, that’s it. Regardless of your current size, market research and finding your wedge isn't just helpful; it's essential. It's your secret sauce for not just getting by, but truly thriving in the world of entrepreneurship.