Many people think that a startup will succeed when its originator comes up with a brilliant idea. There is something in it. The problem is that not every business concept is good and has market potential. Therefore, it’s worth doing research to validate such a business idea. How to use surveys to do so? Read our article and find out.
For starters, a quick reminder of why it is important to validate business ideas. This is to save us from wasting time, and most importantly, from losing money. It is obvious that we always have an emotional attitude towards the idea we come up with. This applies to various areas of life, including business.
So you may think that your startup idea is really good, even revolutionary. However, this doesn’t need to be true at all. In fact, a business concept is only good if there are customers for the product or service, and if the idea solves their problem. Otherwise, it’s a pity to waste energy, time, and money on a project doomed to failure.
You always need to vet your business concept. One of the methods of business validation is using surveys. This is a very good solution when you want to get to know your target market. Surveys help to get feedback, but also information about customer needs. Of course, a survey will only work if it is properly prepared, as the purpose of such surveys can vary.
Some questionnaires check the level of brand awareness, others are used to attract new customers, and still, others are to verify a business idea and determine whether there is a potential market for a startup. It’s worth using surveys because they are effective verification tools, and on top of that, they are not expensive at all.
There are two types of survey research methods: a questionnaire (a list of questions that respondents answer individually) and an interview (asking the respondent a series of questions and follow-up questions based on the provided answers).
How to use surveys? It may sound weird, but it’s best to start from the end. It is important to consider what you will actually do with the data you will obtain. In this way, you will determine what questions to ask, and what you actually want to find out. The purpose of the survey should address a single issue. If you don’t get a comprehensive view of the situation, you can do another survey, this time concentrating on a different aspect of your business idea.
It is necessary to define the clear objectives of the survey. Your goal is to verify whether there is a potential market for your product. This, in turn, requires checking a few important points. You need to find out what type of customers will be interested in your product and why. It is worth verifying how the potential market understands your product and whether customers see it as a real solution to a specific problem.
You need to find out how often the product is likely to be purchased, and how much customers will be willing to pay for it. It’s also worth asking if the audience is familiar with a similar solution and if they use it, what are the advantages of a competing product, and what are its disadvantages.
In order for a survey to provide you with valuable and reliable information, you need to know who to interview. This means that you need to determine your target group. It is, therefore, necessary to think about who you are really targeting with your product and learn a little about the chosen group.
It is worth noting the gender of the audience. If your product is universal, your sample should consist of the same number of women and men. When the product is dedicated to a specific gender, bet on its representatives. A good sample size is usually 1000 people.
In order to create a valuable questionnaire to vet your business concept, you need to ask precise questions. After all, it’s important to get reliable answers to make a business decision. When you create a survey, make sure it is clear and clearly worded.
Avoid using jargon unless you know your customers use it, take care to be neutral – don’t ask questions that suggest an answer. Leave space for comments so that your respondents could express their opinions in an uninhibited way.
What do you need to do after conducting a survey? It is, of course, important to make a thorough analysis of the obtained answers and draw meaningful conclusions.
You’ve just learned how to use surveys for testing your business idea. Other resources: Crowdfunding for startups.
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Author: Andy Nichols
A problem solver with 5 different degrees and endless reserves of motivation. This makes him a perfect Business Owner & Manager. When searching for employees and partners, openness and curiosity of the world are qualities he values the most.
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