Here are a few principles and ways of thinking that can help as you start to conduct research and gather insight for your business.
Practice curiosity
Market research is often exploratory in nature and a curious and inquisitive mindset can help you identify where to focus and the right questions to ask. Toyota’s ‘Five-Whys’ or 5Y is a great tool to develop your curiosity and problem-solving skills. As you are faced with issues, problems or interesting situations in your work and life, keep asking ‘why is that?’ at least five times to explore the underlying issues and causes. Cause and effect trees help take this a step further.
Join groups and networks in your sector, read up on and listen to industry trends and topics. As you interact with topics or issues in the news or in your sector, ask yourself “‘What would I say about that’ if I was asked to comment?” This encourages you to think more deeply about a topic and formulate and structure questions and answers. Try formulating your answers in 60 seconds.
Josh Kaufman’s Ten Ways to Evaluate a Market is a useful framework. Key questions to have in the back of your mind as you explore a business idea and conduct market research include:
- Level of demand and market size: how many people are interested in and/or actively buying the thing you want to offer?
- Points of difference: how unique is your offer and how can you differentiate yourself?
- Cost of customer acqusition: how much will it cost (£ and effort) to acquire a new customer, generate a sale and deliver value?
Plan your research
Spend time thinking about and brainstorming your key research questions. Look at what you already know and where the gaps in your knowledge are.
Formulate specific research objectives and questions. Think about how you will use the information you gather and the type of business decision you need to make. Are you about to make an investment decision or do you need to explore an idea with target customers?
Think about the kinds of information and evidence you need. Qualitative information is helpful when you want to explore a topic you are less sighted on, develop ideas, or gain a deeper understanding of customer experiences, attitudes and behaviours. Quantitative information is helpful for calculating market size, measuring attitudes and behaviours or testing products and services.
Plan the order of your tasks and activities. Initial secondary research can be helpful to identify what information is already accessible and to clarify your thoughts and questions. It can pave the way for more in depth primary research.
Think beyond Google
Search engines like Google are a powerful go-to for place conducting secondary research drawing on indexed sites and information. Structured searching and the use of boolean search strings can help you to be even more effective and systematic in your research. But there are many useful data sources that are not indexed and may not appear in the search strings. So, try not to rely on Google and think about the different sources and places you could go to access information and data. As a rule of thumb always assume that there will be bodies and resources with access to a wide range of information and data that can support your project. For example, you might start by mapping out relevant professional bodies or associations in your sector and carry out searches on their websites for relevant information. We discuss how to conduct a literature or rapid review with a critical eye here.
Make secondary research work hard for you
You will often be surprised about how much information and data is already available and accessible in relation to your questions, including primary research projects that have already been carried out in your sector. It is worthwhile spending time on planning and conducting an initial phase secondary research as you may find that you have enough information to make informed decisions without the need for more in-depth research.
Become an active library user
As a sole-trader or start-up you may not have access to the data and information services that larger companies buy into. Thankfully, public libraries in the UK are providing a vital lifeline to small business owners and can help you access a wide range of resources for your market research. In the UK, the British Library and the City Business Library provide access to an extensive range of business resources. Your local library service will also be able to signpost you to appropriate information and resources. Your local Growth Hubs can also provide you with support.