Research methods for turning ideas into business opportunities
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The Market research provides entrepreneurs with excellent tools to determine the viability of their ideas and opportunities. In the tip "In search of new business opportunities"We showed you typical opportunity sites for turning ideas into business opportunities.
In this TIP we will give you some methodological keys to develop a good opportunities research work.
Why investigate?
Entrepreneurship is a decision and, like all decisions, it must be based on information that supports it. Research is what will allow us to obtain this information.
The first thing to consider is the fact that this process inquiry will be very useful not only for the detection of business opportunities The Commission's work is not only focused on the business plan. This gives us a clear idea of the importance of research!!!
We must ask ourselves, as a first step, what we are going to investigate in order to plan the search properly. Secondly, we must ask ourselves, where are the sources of the information we need and how do we access it?
What do we want to investigate?
Answering this question adequately is essential in order to be able to guide the research properly. We recommend that you read the tip on Design ThinkingThe first step of this creative development tool is precisely to empathise. It is about putting ourselves in the shoes of a group of people with specific profiles and understanding their needs or problems in all their dimensions and then clearly defining the problem. In order to empathise properly, we will have to collect as much information as possible, organise it and exploit it appropriately.
Where are the sources of information?
Sources of information for turning ideas into business opportunities fall into two categories:
PRIMARIES
Where the information does not exist and I must obtain it.
Examples of primary sources:
An online survey or market research, a panel study or an observational study.
SECONDARY
They are those that provide me with pre-existing information that has been synthesised and published by someone else before.
Examples of secondary sources:
Google Academics, LinkedIn Slideshare, websites, blogs, specialised magazines, any other source of a sectorial nature that provides periodic information on a specific sector or market. These publications may be produced by universities, business schools, sociological research centres, chambers of commerce, etc.
Recommendations on primary or self-developed sources:
Information from primary sources of information can be obtained through different methodologies.
WE WILL NOW EXPLAIN THE MOST IMPORTANT ONES:
QUALITATIVE STUDIES
They are studies that are carried out on a small number of subjects corresponding to specific profiles that correspond to potential customers or experts.
Qualitative studies, also called dynamics studies, can have two objectives:
- Design a possible subsequent large-scale study on representative market samples. In this qualitative phase, we ensure that all the essential variables to be investigated are covered.
- It can be aimed at taking decisions directlyThis is especially true when the universe to be investigated is small, the risk involved in the subsequent decision-making process is not very high, or the resources necessary for a quantitative study are simply not available.
These studies are scripted, but the aim is to make the opinions expressed by the participants as spontaneous as possible. The dynamics are usually recorded and transcribed for analysis. For guarantee the quality of information usually takes place more than one dynamics session in order to compare results.
Another recommendation is that, use observation methods. It is a method simple qualitative in which cotests on behaviours of the people directly, That's why they call it the "fly method" on the wall. In this case, the fly takes note of everything it sees. The information you get is based on what people do, not on what they say they do, so you gain in veracity.
Another method interesting qualitative aspect is, that of impersonate someonewith the in order to observe responses or reactions from the people you are interested in. It is a tool similar to the "Mystery Shopper that you can adapt to different circumstances. Impersonating a salesperson, for example, can help you validate a product.
QUANTITATIVE STUDIES
They are the second category of research methods for turning ideas into business opportunities. They are called quantitative because are carried out on a large number of people, enough to reach an acceptable level of representativeness.
The most paradigmatic example of quantitative studies are field surveys using questionnaires, which seek to cover various information objectives: brand awareness, purchasing behaviour, consumer habits, etc.
In the case of the entrepreneurship, quantitative studies, we can allow us to determine whether the need is really shared by the population, to measure reactions to a given solution or even to measure purchase intentionality.
There is other quantitative methods such as telephone or mail surveys. The disadvantage of these methods is that there is a saturation of these formulas, so that the answer you may get is not adequate.
Quantitative studies have the disadvantage of high cost, y If the survey is not properly designed, it can produce misleading results. Fortunately, the internet provides very useful quantitative research tools.
We recommend that you read this TIP (see+ TIP) who will give you some very interesting tips
Active listening (see+ TIP)
This is another of the research methods we have talked about to convert ideas into business opportunities; they may require the advice of an expert to help you use them correctly, and they may also require investment, however small it may be. But if there is one tool that is obligatory and available to all entrepreneurs and that is extremely useful, it is active listening.
Like entrepreneur You are at doomed a talk a lot about your project and to listen more. Talk a lot, don't be afraid to talk about your idea, and with as many people as possible. You want to know everyone's opinion: potential suppliers, financiers, investors, potential customers, partners, distribution channels, experts, opinion leaders, etc.
But, it is also in your interest, to know people's opinions that, formally, nThey have nothing to do with your activity, but from their distance they can provide you with very interesting clues that will add value to your enterprise. Listen with an open mind, with an open mind.
Don't refute, don't contradict, just LISTEN, write down and process everything you hear!!!!
There are several research methods that can help entrepreneurs turn their ideas into business opportunities.
SOME OF THEM ARE:
- Market research: It involves gathering information about the potential market for a product or service, as well as about customers, competitors and market trends. Market research can include surveys, interviews, focus groups, secondary data analysis and direct observation.
- SWOT analysis: It is a tool to identify the strengths, opportunities, weaknesses and threats of a company or project. It is used to assess the current situation and design strategies to improve and take advantage of opportunities.
- Industry research: It consists of studying the sector or industry in which you want to enter, including the identification of the main companies, products and services, as well as market trends and opportunities.
- Competition research: It consists of analysing the direct and indirect competitors of a business, identifying their strengths and weaknesses, as well as their marketing and sales strategies.
- SWOT analysis: It is a tool to identify the weaknesses, threats, strengths and opportunities of a business. It is used to design strategies and actions to improve business performance.
- Investigation of the client's needs: It consists of knowing the needs, desires and expectations of potential customers, in order to design products and services that meet their needs.
- Research on technologies and trends: It involves analysing emerging trends and technologies that may affect the market or business, and assessing how they can be used to improve or innovate products or services.
- Business model research: It consists of analysing different business models and business strategies to identify best practices and growth opportunities.
- Funding research: It involves investigating different financing options for the business, including loans, grants, investors and crowdfunding.
In short, research is critical to turning an idea into a successful business opportunity. Entrepreneurs must be willing to invest time and resources in research, using different tools and methods to obtain relevant and valuable information.
Practical examples of research methods
HERE ARE SOME EXAMPLES OF RESEARCH METHODS THAT CAN BE USED TO TURN IDEAS INTO BUSINESS OPPORTUNITIES:
- Market research: allows you to gather information about the market in which you intend to compete, as well as about consumers, competition and trends. Different techniques such as surveys, interviews, focus groups and data analysis can be used.
- SWOT analysis: is a tool to assess the strengths, weaknesses, opportunities and threats of a business idea. With the SWOT analysis it is possible to identify the strengths and weaknesses of the idea, as well as the opportunities and threats of the environment.
- Competition analysis: consists of analysing direct and indirect competitors in the market. You can identify the strategies they use and the strengths and weaknesses of their business model.
- Trend analysis: consists of gathering information on current and future trends in the market in which you intend to compete. You can identify emerging consumer needs and demands and adjust your business idea to meet them.
- Interviews with experts: interviews can be conducted with experts in the sector or in the area in which you intend to start up. These interviews can help to obtain valuable information on market trends, needs and opportunities.
- Experimentation: experiments or proofs of concept can be conducted to validate the business idea. For example, prototypes or beta versions of a product or service can be created and tested with potential users to get feedback and improve the idea.
These are just a few examples of research methods that can be used to turn ideas into business opportunities. The choice of the most appropriate method(s) will depend on the nature of the business idea and the market in which you intend to compete.
Sources of information for researching market opportunities
There are various sources of information that can help an entrepreneur research market opportunities for his or her business.
SOME OF THESE SOURCES ARE:
- Market research: These are reports and analyses carried out on the market, consumers, competition and trends in the sector. These studies can be carried out by specialised companies or by public bodies.
- Competitive analysis: it is important to know the competitors already in the market and to know what their strengths and weaknesses are, what products or services they offer, at what price, what their marketing strategy is like, among other aspects.
- Social networks and discussion forums: Through social networks and discussion forums, consumers' opinions and needs can be heard, which can be of great help in developing products or services that meet those needs.
- Interviews with experts: it is important to talk to experts in the sector to get their views on the business opportunities and challenges that may be faced.
- Sales data: Sales data can be a valuable source of information on which products or services are most in demand and which are the most competitively priced.
- Trend studies: it is important to be aware of market trends in order to identify business opportunities, such as the growing demand for organic products or the increasing concern for health and wellbeing.
- Specialised publications: There are a number of specialised publications in different sectors that can provide valuable information on market trends and business opportunities.
- Databases: There are several databases containing information on companies, consumers, market trends, among other aspects, which can be of great help in researching business opportunities.
- Surveys and focus groups: Conducting surveys and focus groups with consumers can provide valuable information about their needs and preferences, which can help develop products or services that meet those needs.
How can you use artificial intelligence to research market opportunities?
LA ARTIFICIAL INTELLIGENCE (SEE+ TIP) CAN BE A USEFUL TOOL FOR RESEARCHING MARKET OPPORTUNITIES IN A NUMBER OF WAYS, INCLUDING:
- Search for information: You can ask artificial intelligence specific questions related to your business idea or industry and get detailed and accurate answers. Artificial intelligence can help gather information about competitors, industry trends, legal requirements and much more.
- Data analysis: Artificial intelligence can process large amounts of data and provide useful information for analysing market opportunities. For example, if you want to understand consumer buying preferences, you can ask artificial intelligence to perform online sentiment analysis and gain valuable insights.
- Idea generation: Artificial intelligence can help generate new business ideas and market opportunities by creating a mind map of the issues related to your industry or by brainstorming possible solutions.
In short, artificial intelligence is a useful tool for researching market opportunities and making informed business decisions.
Market research methods in the internationalisation process of a company?
Market research methods are essential in the internationalisation process of a company, as they allow entrepreneurs to know the characteristics of the target market and adapt their offer to the needs of potential clients.
SOME OF THE MOST COMMONLY USED MARKET RESEARCH METHODS IN THE INTERNATIONALISATION OF A COMPANY ARE:
- Competitive analysis: This method involves gathering information about the company's competitors in the target market, including their products, prices, distribution channels and marketing strategies. This allows entrepreneurs to identify the strengths and weaknesses of the competition and develop strategies to differentiate themselves.
- Quantitative market research: This method involves collecting numerical data on the target market, such as population, purchasing power, buying habits and market trends. This allows entrepreneurs to identify opportunities and trends in the target market.
- Qualitative market research: This method involves conducting interviews or focus groups with potential customers in the target market to obtain information about their needs and preferences. This allows entrepreneurs to obtain detailed information about potential customers and to develop products and services that meet their needs.
- SWOT analysis: This method involves assessing the company's strengths, opportunities, weaknesses and threats in the target market. This allows entrepreneurs to identify their competitive advantages and develop strategies to address weaknesses and threats.
- PESTEL analysis: This method involves assessing the political, economic, social, technological, environmental and legal factors of the target market. This allows entrepreneurs to understand the business environment in which they will operate and to adapt their offer to market conditions.
In short, market research methods are essential in the internationalisation process of a company, as they allow entrepreneurs to understand the target market and develop a strategy adapted to its needs.
APPLY THIS TIP TO YOUR PROJECT
Task
NOW THAT YOU HAVE LEARNED ALL ABOUT THIS TIP, YOU SHOULD BE ABLE TO ANSWER THESE QUESTIONS:
- Of the research methods we have discussed; Which one? is the one you consider most useful for testing your idea?
- What secondary sources of information do you have for your research?
- How many people have you told about your project?
We encourage you to do the exercise of answering them!
Of the following forms of research cited, which are primary sources and which are secondary sources:
| ITEM | PRIMARIES | SECONDARY |
| A distribution panel | ||
| A brand awareness study | ||
| A statistical query | ||
| A study of purchase intentionality | ||
| A census of potential suppliers | ||
| A concept test |
CASE STUDY
Juan is an entrepreneur who has identified a potential business opportunity: an organic grocery shop in his neighbourhood. Juan is excited about the idea and wants to investigate further to see if the opportunity is viable.
To start with, John decides to use some research methods. First, he conducts market research to find out about demand and competition. He uses online and in-person surveys to ask people in his neighbourhood about their interest in organic products and whether they would be willing to pay a higher price for them. He also researches the local competition, visiting other similar shops and studying their marketing and pricing strategies.
In addition, Juan decides to conduct a SWOT analysis to assess the strengths, weaknesses, opportunities and threats of the business. He identifies opportunity as a strength and his lack of experience in running a business as a weakness. He also sees opportunities in the growing demand for organic products and threats from possible future competition.
Finally, Juan uses creativity and lateral thinking to generate ideas on how to differentiate his green shop from the competition. He identifies that he could offer local and seasonal products to support local producers and reduce his carbon footprint, as well as create an online community of environmentally engaged customers.
In summary, Juan used research methods such as market research, SWOT analysis and creativity to investigate his business idea for an organic grocery shop in his neighbourhood. This allowed him to assess the viability of the opportunity, identify strengths and weaknesses, and generate ideas to differentiate himself from the competition.
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