Whether you are a massive corporation or a fledgling startup, understanding your market is absolutely essential. Without a deep understanding of your industry, your competition will quickly outflank you and leave you wondering where it all went wrong.
Fortunately, there are more resources for conducting business research than ever before — provided you know how to use them.
The following is a basic roadmap that can help you analyze your industry and draft a coherent business strategy that you can use to grow your business as fast as possible.
Before investing in any strategy, one of the first steps you must take is market research.
Would you play a game like Risk without knowing the rules? A few might decide to do so, but those are the people who often find themselves outmatched by the people who spent the time to understand the mechanics of the game and perhaps even some possible strategies.
Business works the same way, except, of course, for the fact that the stakes tend to be much higher — your career and your money, your investors’ money or both. It makes sense, then, that you should spend some time conducting market research on your particular industry, which you can then use to inform your overall business strategy.
What does market research actually entail?
The first step in conducting market research is to look at what competitors are doing and saying. Often, you can get a fairly clear picture of an industry by reading company blogs and publications to which industry experts frequently contribute. You should also be able to find news stories about market strategies that other companies — in other words, your competitors — have utilized. Instead of wasting precious time and resources learning from your own mistakes, you can instead learn from the mistakes and successes of others in your industry. Right off the bat, this will help close the gap between you and the more established players in your field.
It’s also important to understand how the industry itself measures success. What does a promising and/or successful company look like? How did it get to where it is? What are the key performance indicators that are used to measure one company’s success against others?
You should also learn about the size of the overall market and any specific or related sectors that could come into play. Knowing whether and where the industry is growing is important, as well.
It’s also critically important that you understand the regulations on the federal, state and local levels with which you will need to contend. Not only that, but in today’s politically volatile environment, it’s just as important to stay abreast of where the political winds are blowing with regard to your industry, so you can be prepared if and when regulatory changes come knocking.
Finally, you need to understand what you need to get started. Do you need investors? What are operating costs going to be as you grow? What expenses will increase with size, and which will benefit from economies of scale?
Once you have analyzed the answers to these questions, your business strategy should start to naturally take shape. Of course, it can be helpful to consult with an expert (or a team of experts) that really knows how to market your business, so your business strategy can be leveraged within your particular industry.
Fortunately, there are plenty of resources on the Internet, as well as marketing experts available for hire, who can help ensure that your business is as successful as it deserves to be.