Good morning my friend, great entrepreneur community, we are still in the spirit of anniversary, congratulations to us.
There are practical examples of entrepreneurs whom market research helped to make the best decision on how to to start a new business as an entrepreneur.
Market research simple has to do with intense look around for what the people need, what can really be the basis need for the people, it also involves getting to know the area very well because that will help on know how safe starting up a business can be.
For example, there are some area in my vicinity where some business like selling of drinks and water can really move but there are so much hoodlums there and many who tried opening up business around that area, all their goods where stolen.
So its very important especially an entrepreneur to walk around and ask questions to know more about any area you wish to start up a business, especially when is just a small startup.
My experience with a former banker who is now a fish seller.
I went to the market to buy some fish I came across a lady whom I knew was working in a bank as a customer service personnel, fortunately she was the one selling the fish so I engaged her in the conversation.
She explained to me how she wasted 15 years building someone's financial future, someone's financial life and she came to realize it when it seems to be late but she decided to try and see what she can make out of her life.
I told her no time is too late to start up for yourself.
So I ask her why did she decide to sell fish?
She told me that before she started selling fish , she went into market research and she came to realize some things that people cannot do without.
The major thing that people cannot do without is food, and in Nigeria it is rare for you to see someone that can cook a meal without fish no matter how small it is.
So she said that though there are a lot of stress in the fish business but she is certain that that is what people need and she can make daily income from it.
In our discussion we came to see the benefits of market research before starting a business, she mentioned so many business she would have loved to do but the question was is that what people really want or is it something people can do without.
The economy has gone so bad that people hardly buy things that they don't really need so it is better to sell things that people cannot do without especially food stuffs.
I also noticed that she was also doing POS and she explained that most time when people come to the market they exhaust the money they came with and most of those market woman do not allow bank transfer so definitely they will look for where to withdraw money and bank facilities are very far from the market.
She said she took her time to check and see if this is really what will give her the financial growth she want and she came to realize that she has made a very good decision because on daily basis she makes a lot of money from both fish business and the POS.
Let's emphasize more on the effects of market research before starting a business.
What the banker did was that she identified the opportunities and threats, where she is located is a place where you have a lot of occupants and its also a major road and looking around there are just few shops of people selling fish.
Now during market research she found out the size and prices of other people around, now she has to work on standing different, offering more quality than those around and with a better price.
She already knows where they buy and how they sell, so added more effort, she goes to the depot to buy her goods ,this helps her to get the best quality at a better price and she also sells lesser price than other people around.
So we can say that she has identified their weaknesses and strength so she can now be able to compete with them by given the people best quality of goods.
So she has good quality products and she sells good prices, and she's at a strategic location, this attract so many customers to her, and she's growing, you won't believe she just started and you wouldn't believe she never sold fish before.
Thats another be effect of market research before starting a business, it helps to clear up doubts and make an entrepreneur more effective and efficient in whatever business she or he started.
How she managed with the risk involved.
One way to succeed as an entrepreneur is to manage risks very well because if risks are mismanaged it will affect the growth of the business.
One risk that comes with selling fish is lack of electricity because when there are some left over it needs to be freezed for the next day.
This former banker mitigate risk in some simple and practical ways, firstly she sells of the last part of her products in a lesser price to attract more people.
Secondly she has some restaurants she supplies fish late in the evenings so she hardly have leftover products that can get spoiled and lose money.
Another thing she did was that on Monday's she buys lesser quantity of product because during her market research and with personal experience most families will still have their weekend food on Monday so the demands of fish will be less.
It was actually a lengthy discussion with her because i knew i can learn somethings that will as well help me as an entrepreneur.
Take home points
Market research is very crucial for any startup because it helps an entrepreneur to forecast and make strategic decisions new business, it also helps for customers personalization pending on the location, it also helps to know prices and the quality of goods people in the area will need.
Facts
Facts still remains that starting up as entrepreneur comes with many difficulties and challenges, if any want to succeed 💪 its very important to build that resistance Spirit in you.
The banker i mentioned says " My friend it has really been hectic, waking up early morning, jumping bus to the port where i buy the goods, the worse is that i have to deal with the smell everyday"
She understands that shes not struggling to build anyone rather she is doing it for herself and her future, so she keeps moving.
When an entrepreneur focus on the benefit and the future she or her can overcome any present challenges and become a successful entrepreneur.
Thank you, and happy anniversary 🎉 once again.
All images are mine
