How do you know if a product, strategy, or idea will find success in a specific market? Instead of guessing what could be needed or possibly popular, a market feasibility study delivers concrete information about what to expect.
Market feasibility study can identify the potential market, existing competition and possible infrastructure or development opportunities. It also delivers a complete analysis that evaluates the current idea being pursued.
A market opportunity has a better chance of success when it can meet the unmet consumer needs in a specific segment. Market feasibility identifies those gaps, helping entrepreneurs determine if it makes sense to pursue that idea.
When you work with Kenshō, we can help uncover the information needed to take the next step forward by creating the market feasibility study for you.
How to create a market feasibility study
There is a difference between a “great” idea and a “feasible” one. When you have both, you have a better chance of being successful. When you follow these steps, you can create your own market feasibility study.
1. Create your market feasibility plan outline
Begin the market feasibility study with a look at the scope of the project or your plan’s outline. This information should clearly state the idea being pursued before determining if it is feasible.
You’ll want to answer the following questions during this step:
- Why is this idea important to my business?
- Is there an existing landscape or concept in the marketplace already?
- Have others tried this idea before?
- What can I do differently to create a successful outcome?
This information makes evaluating the risks of introducing a new idea to the market easier. You can see if contractor marketing services are necessary or if social media marketing services would be a better investment.
2. Conduct a survey for market analysis
Once you know what you hope to accomplish, it’s time to perform a market analysis to ensure you understand the current conditions.
This step helps you identify potential competitors, consumer demographics, market value and your potential share when pursuing an idea.
Focus groups, social media polls, public domain data, phone interviews and email correspondence are all common ways to gather market feasibility information in this step.
3. Answer the core financial questions
Once you’ve identified the need in the marketplace to meet, it becomes essential to determine if entering that niche is financially feasible. Will your idea solve problems in ways that people appreciate? Can you earn a profit or justify your costs?
There could be legal or technical issues to navigate during this step. You’ll get the information you need to determine if continuing is the right choice, or if it would be better to repeat the first two steps.
Imagine that you need legal translation services. Would it be better to focus on translation services from English to Russian, adopt Chinese translation services or pursue website translation services?
This step answers those questions.
4. Calculate the costs of marketing
If you decide to proceed, your business will need capital to invest in bringing products or services to the marketplace. Where will that cash come from right now? What will be required to earn a profit in the future?
When you know what to expect for fixed costs and other potential expenses, it’s easier to find the right balance for your profit margin.
5. Polish and present the market feasibility study
Once you’ve answered all the questions regarding market feasibility for an idea, you can present the information to others. This data should always be open and transparent, inviting feedback from others to ensure no info gets missed.
Market feasibility lets a business know it is clear to proceed with an idea or that now might not be the right time to pursue it. Although the future is unpredictable, this data lets you know if the risks are worth taking.
At Kenshō, we create mindful solutions through a genuine understanding of your marketplace. Contact our team today if you’re ready to explore the market feasibility of your next idea.
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