How to conduct market research

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Understand the purpose of market research

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Core elements of market research

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Primary market research

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Secondary market research

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Use PitchBook 📖

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Use COBRA 🐍

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Key things to remember

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Validate your business idea

Use the insights gained from your research to validate your business idea. This might involve creating a minimum viable product (MVP) and testing it with a small group of customers.

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Continuously update your research

Market conditions and customer preferences change over time. Regularly update your research to stay informed and adapt your business strategy accordingly.

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Stay ethical and respectful

Ensure that your research methods respect participants' privacy and consent. Be honest and transparent about your intentions and how the data will be used.

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Why investors care about market research

Market research is not just about gaining insight for yourself - it’s a tool for convincing investors. Venture capitalists (VCs) and other funders will conduct their own market analysis before deciding whether to invest. If you can present thorough research that shows both market potential and a strategy for standing out from competitors, you’ll be ahead of the game. This kind of preparation can make a difference when pitching to investors, as it demonstrates that you understand your market in-depth and have considered the business landscape carefully.

Preparing for investor questions

By conducting comprehensive market research, you'll be well-prepared to answer the key questions investors typically ask. These might include:

• Who are your competitors?
• How is your product or service differentiated?
• What is the total addressable market (TAM) for your offering?