Small business failure rates are said to be approximately 70% - 80% within the first five years, which is enough to scare anyone from even starting, but entrepreneurs are unique because they dive deep into risky terrain without thinking twice about it. One of the many reasons for this failure rate is the lack of research into desired markets, the lack of customer knowledge and understanding. In reality, your customers will happily reward you when you prove to understand and know them.
How do you get to understand your potential customer with some seemingly expensive research tools in existence out there? There are some easy ways to do this both online and offline by asking some critical questions. Most of all, it’s free and it can lead to useful intelligence.
Tools and hacks for research:
- Empathy
The solutions-based approach to solving problems, building products and tackling complex challenges known as Design Thinking is broken down into five stages. These include empathise, define, ideate, prototype and test – all of which help in unpacking the problem and creating a solution.
Oftentimes, we define the problem and implement a solution which leads to some of the worst failures when we could have asked some questions. The empathy stage is critical in business, ask your customer or potentials what their problem is and the answer may even be easier than it seems.
- Listen
An estimated 2.77-billion people will be using social media in 2019 and some of the data that people produce relates to brands and the things they like about their favourite brands. This translates to massive amounts of information that entrepreneurs are missing out on.
For some quick and easy access to what people think of your kind of business, use the “Search” function on Facebook or Twitter and find out what is being said about your industry. It may lead to a change that could turn things around. - Run a free survey
There are many free survey platforms across internet including Google Forms and Survey Monkey which allow to collect responses and analyse data. This can be helpful in when you need to make changes or to develop a new product. Try to ask questions that may lead to useful insights, instead of telling you what already know.
The smartest and most successful businesses are constantly testing, conducting research and making minor improvements. Adopting a culture of evolving in every step of the way can also empower entrepreneurs and businesses to stay relevant and continue growing revenue.
By Mongezi Mtati