Finding a market for your product and service isn’t always easy. So…. if you are in the process of launching or deciding on a new business here are some market-finding pitfalls that you can avoid. (These are all based on real examples we’ve come across recently).

Mistaking a need for a market. Finding a need that you can fulfil is a great place to start…. but it’s not the same as finding a market. For example…. if you identify that student’s rrrrreally like truffle oil infused pizza, and that 80% of the ones you survey say that your particular brand of truffle oil pizza is their absolute favourite…… BUT the rrp for your pizza is £24.99… you still haven’t found a market.

X-factor syndrome. You make cupcakes/bunting/bird boxes/greetings card and give them as gifts to your friends and family. They all rave about them. So you quit your job and set up a business. A compliment from friends and family is not market research. In fact, bigging you up is part of what they are therefore. When you find your market and set up a business that’ll come in handy, cos setting up a business is tough…. but until then… ignore them. Do what many X-factor contestants should have done before appearing in the auditions; Get some independent verification that you can sing.

“I was doing A but people kept asking for B”. We people often tell us that they started their business because as part of their previous role they discovered an unmet demand. Again this CAN be a brilliant way to create a business, but it’s not enough on its own. Too often we’ve seen businesses fail because something which people loved when it was offered free as an added extra simply isn’t something people want to pay for.

Your market is:
A defined community of people with a specific need,
…who want your product or service above other similar offerings (and preferably you’ll have evidence of this)
…and are willing to pay for it at a price which is profitable.