In today’s highly competitive world, a feasibility study for a new product or service acts as an integral part of the business, including various permutations and combinations. A well-defined start-up feasibility study defines the longevity of the business. One of them is the market feasibility analysis which acts as a window to foresee and curve the roadmap for the long run. It helps to evaluate various risk factors and benefits associated with different startup business ideas.
Many new startups come and go out of business but the ones that succeed have their market feasibility study in the right place.
Why is a feasibility study an important step for start-ups? What are the questions that their feasibility study answers? What enables start-ups to get an accurate feasibility study report?
The importance of feasibility study for start-ups
The importance of a feasibility study and business plan should never be underestimated, especially for those starting a new business. A feasibility analysis report helps to build a sturdy foundation for a business to be built upon, preparing the company for any threats or weaknesses that may arise as the business grows eventually.
There are several market research and consulting experts who help start-ups and entrepreneurs to assess the business environment, evaluate the challenges and mitigate the risks. The market research and consulting services provided by these specialized firms help to define and streamline the business operations and at the same time, it provides proper insights for revenue generation and helps in profit maximization.
A feasibility test for any startup(s) acts as a template that evaluates the potential of the business in the long run. Nowadays many venture capitalists and angel investors in India analyze feasibility study reports before making any investment in a startup. In addition to it, it serves as a guideline for making strategic business decisions and can be used for understanding the demographics of potential customers.
As a result of a different feasibility study(s) performed by research, experts provide entrepreneurs or start-ups to raise sizeable ticket sizes from various global and domestic funds. India tops the list of startups ecosystem and ranks in the third position globally; it is expected to witness YoY growth of consistent annual growth of 12-15%. Our country has about 50,000 startups at present implying that there are 2-3 startups born every day. Therefore, it becomes imperative that every entrepreneur performs a feasibility market study to survive in the market.
The top three questions that need to be addressed during the market feasibility study for start-ups
1. What is a customer persona?
Considering the present trend, where everything is available at one’s click, knowing your customer (KYC) and studying their consuming behavior should be the number one priority. Having a thorough understanding of the potential audience will help determine not only who to sell to, but how to sell to them.
How do you know that your audience is interested in some easy and tangible way of selling their products/ services? Market research study allows you to know, which are the best platforms for you to sell to your audience. From online solutions to in-store promotions, knowing how your audience shops are crucial for your business and its success.
2. Who is my target audience?
Before beginning or taking any big steps in the business, you need to ensure there’s an audience for you to sell to. This works for both products as well as services-based businesses. Because without customers, there are no sales. Market research will help to determine if there is a potential audience and locate them.
If no one’s interested in the product or service you’re offering, you’ll need to reconsider if starting a new business in that direction is the best idea. On the other hand, if there is a promising audience, you must make the right decisions regarding where and how to sell to these customers.
3. Who are my competitors?
When starting a new business, you must be aware of any companies that may be considered competition. Whether it’s a direct or indirect competitor, knowing how their businesses may threaten yours will help you better promote your product, or service and remain competitive within the shared audience.
Market research determines who might pose a threat to your new business, giving you the upper hand. If you’re aware of the competition, you can strategically work towards changing customer loyalty and positioning your brand in a unique light. Without this knowledge, you’ll find yourself feeling like a small fish in an ocean—unable to get past competition you didn’t know existed.
Can the feasibility studies be outsourced to the experts?
Luckily, combining market research with some professional support from an inbound marketing agency or an end-to-end one-stop market research group can help you to improve your communication tactics. Thus providing you the best of the reach and solutions.
A strong market research firm can help you conduct an effective feasibility study for your business/ product idea. As feasibility studies involve a lot of complexities right from the planning phase to feasibility report creation, partnering with a firm that specializes in feasibility study solutions is always recommended.
Starting a new business may sound petrifying. However, it doesn’t have to be. The taboo of not knowing how to run or start a business or the unwillingness to take risks is not the factor now. Just going the extra mile and conducting some market research ensures you have all the information at your doorstep, you need to make your new business a success. So don’t stay in the dark—know the information you need to succeed.
Thus, we at ResearchFox help entrepreneurs, startup owners, and product leaders across industries like Automotive & Energy, FMCG, Retail, Ecommerce, BFSI, Telecom, etc. to conduct feasibility studies for their new business/product ideas and build strong strategies.
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