Using Market Research In Start-ups
October 22, 2012 Leave a comment
Later this week, I will be teaching a class at Wake Tech Community College about finding job opportunities with start-ups and early stage companies. It is a class I have taught before with a lot of success and positive feedback. We discuss a variety of topics related to working with and understanding the general culture of start-ups, learning how to find them (as they are not necessarily well known) and profile ones that are hiring in the Triangle area.
We also look at the fact that, although any company could go out of business any day, start-ups tend to do it more frequently because of the market, newness of the companies, and just the general failure rates of newer companies. We specifically look at EvoApp. Now EvoApp, based on everything, should have been a company that was to be a survivor. It had a great idea when the company had started. It also had investment from solid individual and group inventors. It also had high profile customers and solid mentor-ship.
Now, I would submit to you that one of the reasons EvoApp ended up closing it’s doors after three years is that it forgot about doing continuous market research. Although I was not specifically involved with the organization, from the multiple articles I read about EvoApp, it seems like one thing the company was not thinking about was it’s competition. When the company had started, social media monitoring was a new and compelling concept. However, a number of companies started since then that had better funding.
Now, I have written about competitive analysis before. But with start-ups, competitive analysis is not the only research need. Getting a clear understanding of their target market through demographic analysis or using surveys to developing pricing schemes are also of key importance to start-ups, especially when the start-ups is in its infancy to make sure the organization is on the right track. And keeping any company on the right track is ultimately key to its long term survival and success.
–J. Nolfo helps companies understand their market and customers though a variety of market research strategies. He has over ten years of experience of market research for strategic planning purposes. He is the Director of Research at Rhino Market Research. He shares his thoughts about market research and business concepts with his blog “Pensare…Understanding Market Research in Business“. If you would like to discuss this blog or how J. can help you understand your market and customer needs, email him at firstname.lastname@example.org.