The Key To A Long-Lasting Business – Why Skipping Market Research Is A Mistake
- Dec 6, 2024
- 3 min read
Written by Mary Fashanu, Business Strategy Consultant
Mary Fashanu is a successful strategy consultant, certified coach by John C Maxwell, published author, and serial entrepreneur. She is the founder of multiple business ventures under the group company, The Maverick Group Inc., and the author of The Limitless You Book, published in 2024.
Imagine purchasing a flat-pack bookshelf from IKEA. You open the box, glance at the pile of parts, and think, “I don’t need the instructions; I’ll figure this out!” You start assembling, only to discover halfway through that something is wrong. A critical step was missed, and now the bookshelf wobbles or, worse, isn’t fit for purpose. Frustrated, you find yourself undoing your work and starting over.
Building a business without conducting proper market research is just like skipping the instructions when assembling that IKEA product. It’s a costly mistake that could derail your efforts and waste precious time.
Market research is the foundation of a sustainable and successful business. It’s the equivalent of the step-by-step manual that guides you toward creating something functional, purposeful, and long-lasting. Without it, your business might not align with customer needs or market demands, leaving it vulnerable to failure.
What is market research, and why is it crucial?
Market research is the process of gathering, analysing, and interpreting information about your target audience, competitors, and industry trends. It provides the critical insights you need to:
Understand your audience: Who are your ideal customers? What are their pain points, needs, and desires?
Identify market gaps: What opportunities exist that competitors haven’t tapped into?
Assess demand: Is there a genuine need for your product or service, and how can you position it effectively?
Shape your strategy: How can you price, market, and deliver your offering to meet customer expectations?
Skipping this step is like blindly assembling furniture. You might get something standing, but it won’t be sturdy, functional, or aligned with its intended purpose.
The IKEA analogy: Why skipping steps can hurt your business
Let’s revisit our IKEA example. When building furniture, skipping a step can result in a product that looks complete on the outside but lacks the internal structure to stand the test of time. Similarly, in business, skipping market research can lead to:
Products or services that miss the mark: You might think you know what your customers want, but assumptions can lead to offerings that don’t resonate.
Weak foundations: Without understanding your market, your pricing, branding, and marketing strategies might not align with what your audience values.
Costly backtracking: Like disassembling furniture to fix a mistake, neglecting market research often means going back to the drawing board to correct fundamental errors.
How to approach market research the right way
To avoid costly mistakes and ensure your business is built to last, take these actionable steps:
Know your audience: Conduct surveys, focus groups, and interviews to learn about your target customers’ needs, challenges, and preferences.
Study your competitors: Analyse what similar businesses are doing well and identify areas where you can differentiate yourself.
Track industry trends: Stay informed about changes and opportunities within your niche to stay ahead of the curve.
Test your ideas: Before fully committing to a product or service, validate your concept by gathering feedback from a small, targeted group of potential customers.
The long-term impact of getting it right
When you take the time to conduct thorough market research, you create a business that is purposeful, resilient, and adaptable. Every decision, from product development to marketing, is guided by insights that align with what your audience truly values.
Just as following the IKEA manual ensures your furniture is functional and durable, market research ensures your business is equipped to stand the test of time.
Final thoughts
Building a business isn’t about rushing to the finish line; it’s about laying the right foundation. Market research might seem like a tedious step, but it’s one of the most critical aspects of creating something that lasts.
So, before you dive headfirst into your next venture, pause, pick up the "instruction manual," and take the time to understand your market. Your future business and your customers will thank you for it.
Read more from Mary Fashanu
Mary Fashanu, Business Strategy Consultant
Mary Fashanu is a strategy consultant, certified John C. Maxwell coach, published author, and serial entrepreneur. She empowers entrepreneurs and service-based business owners to grow their businesses and make an impact. With over a decade of experience in international business, consulting, and coaching, Mary has received numerous accolades. In 2022, she was recognised by the African Business Chamber as one of the top 100 African business leaders and acknowledged by the UK Black Business Guide for her business transformation expertise. She was also nominated for the Northern Power Women’s Outstanding Entrepreneur of the Year award. Mary is a speaker, consultant, author, coach, and community builder.
