The Internet presents a wealth of research opportunities that can help a small business owner gather important market intelligence without leaving home or spending money.
Good market intelligence and simple research can help a new business target its products and services. Getting the right product at the right price to the right market is part of the key to a successful business and is as important to a small business selling handmade items as it is to a large multinational – arguably more so as the small business does not have a market position or global name to fall back upon.
Here are a few ways that can help provide the information required to build a successful small business.
Collecting Good Market Research
The Internet offers a wealth of opportunities for people looking to launch a new product or service. A simple search will return potentially hundreds of pages of information about a given product and companies that are currently selling it. This can help to build an understanding of product ranges, where the gaps are in the market and where there is market saturation.
- Websites: Internet sites such as eBay, Etsy and other specialist sites are a great source of detailed information and particularly useful for small business looking to sell handmade items. When researching product opportunities it is important to look for areas where there is potential. There is a temptation to tailor a product offering to the most popular areas of the market – however these could also be the most heavily saturated and the competition between companies may mean that the prices are compromised and it is difficult for a new company to break in. (Take a look at this article for more information about using eBay as a research tool)
- Reviews and Feedback: Many websites now offer the opportunity for customers to leave feedback or reviews of products. When researching new opportunities this can be a valuable tool, as it gives an insight into the experience of customers and a snapshot of their thoughts at a given time. This can help to determine what a customer might require or expect from a product or service, including price and delivery.
- Forums and Groups: Internet forums and groups can be found on the Internet on almost every subject and most of these are free to join. Major portals such as Yahoo and Google Groups offer a wide range of groups and their directories are easy to search. Forums are a great way to find out more about the market need and present the opportunity to observe what people are talking about in a given area. If a small business is interested, for instance, in developing a business selling handmade diapers, then joining a forum and listening to other members as they talk about their wants, needs and experiences gives an insight that is invaluable. Note: It is generally considered unethical to use forums as a sales outlet.
The information that is gathered will help to build a small business that has the foundations for long term success.
Further Reading:
- Selling products internationally - tips for a small business
- Building a small business website - important features to consider
