“Creating demand is hard. Filling #demand is easier. Don’t create a product, then seek someone to sell it to. Find a market – define your customers – then find or develop a product for them.” – Timothy Ferriss
Business, be it any business, works on the simple principles of Supply and Demand. The equilibrium between these two factors must be maintained as if they are on both sides of a see-saw. Where there is more demand, there will be a market to sell more goods, and hence needs more supply.
Hence, the key to the successful business is realizing the current demand of the market and ensuring the supply. If you can understand the niche where your product has a need, you can tap into that with your supply. That’s why being able to realize the market demand and weigh it alongside what you are offering is the key to success.
Market Demand – Have You Analysed Yet?
The definition of Market Demand is self-explanatory. However, something so simple is the most crucial factor in deciding whether your product sells or not.
Being the deciding factor, studying Market Demand is essential to succeed in business. Knowledge is power, and understanding demand can help your startup to grow and succeed. Being aware of what your target audience needs, and integrating those needs into your product helps to sell your idea.
Market Demand for Startup Ideas
Startups often begin with innovative ideas which have never been tested before. Else, it tries to put new features and twists in products from existing sectors, making their product more desirable than the existing ones.
Brand New Ideas: The Innovative Startups
That being the case, studying the market demand for startups is challenging, but at the same time extremely crucial. For startups based on new ideas and innovations, the product or service tends to be utterly new to the market and has no predecessors to learn from. This makes it vital to figure out how the customers will react to your product before you release it to the open market.
Grabbing a Share: Startups in Established Sectors
For startups based on existing or traditional sectors, it is much easier to estimate the response of the target audience. You have competitors and history to learn from. However, this is crucial as they try to penetrate and establish themselves in a market that already has some big names who are well-established. This means that they’ll have to scrutinize the market carefully to recognize drawbacks in the product of their competitors and offer what the customers want.
In either case, you must learn the way of the market. What the market demands, and how your company can cater to that need will decide your success in the open market as a startup.
Knowing the Market Demand
There are a few steps that you can take to figure out the Market Demand and check where your resources and product should be distributed to earn maximum profits.
This is one critical area that every entrepreneur should invest in. Before you go ahead with a startup, you need to research the feasibility of the product. Just like a coach and the referees check the ground before a match, you should study your playground very well.
Statistics, market history, and the current state of companies which offer the same product or service as you plan to, if any, can give you a comprehensive insight. There are other factors too, which point to specifically your product, like its popularity trend, and possible future applications. All these factors culminate in showcasing you the bigger picture regarding your company’s future.
You can look at the stats and the data to understand and figure out the market trend. This will help you start off when it’s most profitable and regulate your sales as per the fluctuating market demands. Even though this behaviour can’t be predicted to the most delicate details, it gives you more or less the general direction in which the market may move according to past trends and other factors.
Since business consists of many factors coming together, studying all these variables and correlating them is crucial to succeeding.
Many expert sources in the world can help budding entrepreneurs and their Startups to make their way through the turbulent world of business. They can be in the form of successful businessmen, mentors, or even websites of consulting professionals.
Their experience and hands-on knowledge make them a precious resource whose guidance and expert opinion can be the real differentiating factor. Their knowledge of the undercurrents and ability to analyze the market is honed from practice, and hence make them experts.
More often than not, the entrepreneurs who launch Startups are inexperienced and often filled with fiery passion rather than any real expertise to drive business. In this situation, a veteran guide brings to the table, something that the entrepreneurs lack severely. Therefore, expert opinion is considered a reliable resource to expand your market.
This is perhaps something extraordinarily underrated and even underused. Customer Satisfaction and Feedback directly points to how much of an impact your product is making in the market and what could be improved to make it perform better. It is one on one, unfiltered and does not require to be analyzed to find the underlying cause of a problem if any.
Customer Feedback, when used, can be a potent resource. It gives you the perspective of the consumer of your product. You can use them to diversify your startup’s product line, explore more trades, and also tweak your existing product to offer better service and functioning, attracting more customers and extending your customer base.
Wrapping up, you cannot sell something if no one wants to buy it. Startups and entrepreneurs need to figure out what their audience demands and where they could sell their product to be successful. Market Demand is the knowledge of this aspect, which tells you where your services are required. This analysis will then enable you to run your growing business and realize your dream.
An yes, you need to be on the right boat!
TetraNoodle provides technology consulting services in most of the cutting-edge technologies. We offer Fractional CTO Services, where we offer a wide spectrum of Software and Cloud Computing Consulting Services; Business-Technology Consulting, Internet and E-Business Consulting, System Integration, Custom Application Development, training & workshops from global software experts and application re-engineering. With a single-minded focus on bringing success to your product, we work collaboratively with you throughout your product’s lifecycle. Our expertise, experience & skills ensure that your idea or product would be validated, developed, tested & delivered to be an investor and market ready.
Stay With Us: