Mom Invented

For many entrepreneurs, there is the temptation to skip market research. "I know my product's strengths and I know there is a market for it," they say, and they may be right. Nevertheless, market research is absolutely essential prior to launching (or even manufacturing) your product. That's because your research will go well beyond simply determining IF there is a market and what's great about your product. It will also reveal important subtleties that are essential to your product's success. Based on the objective feedback you receive, market research can help you fine tune your product, avoiding costly manufacturing or packaging mistakes, and will help you more effectively focus your marketing and sales efforts.

But what if there's simply no budget for it? Here are some strategies to conduct affordable market research:

1. Dig deep. Instead of buying expensive research reports ($500 to $5,000), find published articles in sources like Entrepreneur.com or Business 2.0 that already contain the same data.
2. Conduct your own focus groups. Instead of hiring a marketing firm, borrow facility space, or meet at your home or a coffee shop. Offer affordable incentives to participants (turn it into a "girls' night out" at your home with food and refreshments, for instance, instead of giving a sum of cash.)
3. Do your own direct mail survey. You don't have to create an elaborate printed piece with graphics. Instead of hiring a direct mail firm, use your own mailing list, create a simple letter, and mail it out yourself.
4. Get on the phone. Yes, you can hire a firm to do a telephone survey. But save yourself the expense and make calls yourself - or ask a family member to help out.

Tagged as: Business Advice, business marketing, business startup, market research, startup, startup advice