1 / 34

Market Research for Startups and Their Investors

Market Research for Startups and Their Investors. Presented by: Amy Siadak. $$$$$$$$$$. YOUR IDEA = THE NEXT MILLION DOLLAR IDEA. Sobering Stats. Globally nearly 90% startup business fails. Only 10 out of 100 sustain at last.

fritzi
Download Presentation

Market Research for Startups and Their Investors

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market Research for Startups and Their Investors Presented by: Amy Siadak

  2. $$$$$$$$$$ YOUR IDEA = THE NEXT MILLION DOLLAR IDEA

  3. Sobering Stats • Globally nearly 90% startup business fails. Only 10 out of 100 sustain at last. • Source: Harvard Business School Working Knowledge, quoting research by ShikharGhosh, a senior lecturer at Harvard Business School

  4. Sobering Stats • If failure means liquidating all assets, with investors losing most or all the money they put into the company, then the failure rate for start-ups is 30 to 40 percent. • If failure refers to failing to see the projected return on investment, then the failure rate is 70 to 80 percent. • If failure is defined as declaring a projection and then falling short of meeting it, then the failure rate is a whopping 90 to 95 percent. • Source: Harvard Business School Working Knowledge, quoting research by ShikharGhosh, a senior lecturer at Harvard Business School

  5. Good News Using market research the right way, early and often in product development can provide valuable insights.

  6. Classic Market Analysis Tools • Startups need 2-3 times longer to validate their market than most founders expect. • Startups that haven’t raised money over-estimate their market size by 100x and often misinterpret their market as new.

  7. Classic Market Analysis Tools • Premature scaling is the most common reason for startups to perform worse. • Lack of adequate market validation (if any). • Using metrics to understand customers rather than observation.

  8. Common Mistakes Creating/building for yourself instead of a market. Little or no market research or market validation.

  9. Common Mistakes One sided competitive analysis. Not understanding your customers.

  10. Common Mistakes Not defining the correct product category. Overly focused on metrics and variance reduction at the expense of qualitative data.

  11. Results of using improper data Costly in dollars and wasted time. Exaggerated numbers that are not sustainable. Using anecdotal information, rather than statistically valid and relevant data, leads to unsupported statements and arguments and does not support the business strategy.

  12. Key Questions Is there a market for your product or idea? Competition? Pricing? Size of the market/potential market space? Who is your customer?

  13. Types of Research Market research encompasses a wide variety of types of research. The two basic categories are quantitative and qualitative.

  14. Startups and Market Research • Quantitative data • Needs to be statistically sound • Adequate sample size • Qualitative information • Gather information that will shape and develop the right product • Uncover the needs and concerns of the customers • Find the benefits that lead the consumer to buy the product • Customer experience

  15. Statistically Relevant Determine Sample Size Find Confidence Interval Sample Size Calculator Terms: Confidence Interval & Confidence Level

  16. Online Quantitative Calculators

  17. Population Size How many people are there in the group your sample represents? The confidence interval calculations assume you have a genuine random sample of the relevant population.

  18. Confidence Intervals and Levels Confidence Intervals (also called margin of error) is the plus or minus figure usually reported in newspapers and opinion polls. The confidence level tells you how sure you can be.

  19. Qualitative Options Concept testing and prototype testing is widely used to evaluate new product ideas.

  20. Beta Testing • In-use or beta testing. Allowing a select group of consumers to use prototypes of the product and report on the strengths and limitations that they find.

  21. Blind Market Research • Blind market test is useful for confidential and proprietary products • Deliberately keep it blind • Double blind studies to compare competitors • Uncover your competitive advantage • Eliminates biasness • True insights into your customers experience with your product • Uncover weaknesses with your product

  22. New Online Tools - Quantitative • Quantitative • Online survey tools • Survey Monkey (Free) • Google Consumer Insights • Zoomerang (Free) • Qualtrics (Free) • Gutcheck • Snapsurveys

  23. New Online Tools - Quantitative • Quantitative • Online polling • Polleverywhere.com (Free SMS Text polling) • Checkbox.com • Polldaddy.com

  24. New Online Tools - Qualitative • Online Focus Groups – real time • Online discussion boards – over time • Weeks or months • Assign homework to see the evolution of a product over time • Group mode or individual

  25. New Online Tools - Qualitative Journals, diaries, blogs SMS/Chat based discussions Mobile market research

  26. 3 Uses for Mobile Market Research It’s Easy, it’s flexible, and it opens up new research ideas. To support online quantitative research. To support other qualitative research. “In the moment” opportunities.

  27. Case Study – Start up Goal – Understand and obtain customer experience in the “white space” in the home electronic and mobile accessories market to produce prototypes.

  28. Case Study – Start up Phase I: Opportunity Discovery via Blog Diaries • Recruited 20 participants. • 7 days of diary activity (blog). • Respond to specific moderated questions during the 7 days.

  29. Case Study – Start up Phase II: Concept Testing via Group Discussion Review and learn from phase I. Invite participants to take part in online. discussions. Reveal 10 new product concepts.

  30. Case Study – Start up Phase III: In Home Product Tests via Blog Diaries 3 new product prototypes developed and sent to each participant. Participants provided feedback via blog diaries in the form of pictures, videos and text. Real world use. Real insights and guidance for the development team.

  31. Case Study – Start up Conclusion The research provided the management team and development team with a variety of extremely promising new product concepts.  Information based on how the product fits into day-to-day life not just anecdotal data. Short amount of time and money invested to product key insights.  Budget spent - $7,500

  32. Benefits of Market Research for Startups • Understand the industry trends and gather true market data – not just anecdotal. • Get a solid read on how the general public responds to their business ideas. • Determine if specific features are working as intended. • Discover opportunities for improvements.

  33. Benefits of Market Research for Startups Imperative when creating a viable business plan. Learn about leading competition or threats in the market place. Provide confidence for the business owner and reduce risk for the investor. The kind of understanding that can move a business forward.

  34. THANK YOU! If you have any questions or to request consultation, please contact: Amy Siadak House of Marketing Research PH: 626.486.1400 ext. 204 amy@hmr-research.com www.hmrmobile.com www.hmr-research.com

More Related