HOW TO CONDUCT RESEARCH

I. Basic Research: Validating the Core Idea & Initial Viability (Foundation)
At this stage, you're primarily focused on determining if your business idea is worth
pursuing at all. The research is about feasibility and initial market validation.
 A. Problem/Need Validation:
o Is there a genuine problem or unmet need you're solving? This
is the absolute most basic research.
 How to Research:
 Informal conversations: Talk to potential customers,
friends, family, online communities. Ask open-ended
questions about their frustrations, needs, and pain points
related to your potential solution.
 Online forums and social media: Listen to discussions
in relevant online spaces. Are people complaining about
the problem you're trying to solve? Are they actively
seeking solutions?
 Review websites and app stores: If your idea is
related to existing products or services, read reviews.
What are users praising and criticizing? What unmet
needs are being highlighted?
o Is this problem/need significant enough for people to pay for a
solution? Even if a problem exists, it might not be a priority for people
to spend money on.
 How to Research:
 Preliminary pricing research: Look at existing
solutions (direct and indirect competitors). What are they
charging? Does that price seem reasonable to you and
potentially to your target audience?
 Value proposition assessment: Can you clearly
articulate the value you're offering? Is it compelling
enough to justify a purchase?
 B. Basic Market Understanding (Initial Scope):
o Who is your potential target customer? Even a broad
understanding is crucial at this stage.
 How to Research:
 Demographic and psychographic guesses: Based on
your problem/solution, who might be interested? Age,
 location, income level, interests, values, lifestyle. These
are initial hypotheses.
 Think about "ideal customer profiles" (ICP) - even if
very basic. Who is most likely to experience this problem
and benefit from your solution?
 C. Basic Competitive Landscape (Quick Overview):
o Who are your direct and indirect competitors? Don't need a deep
dive yet, but awareness is key.
 How to Research:
 Google searches: Search for keywords related to your
product/service and location (if applicable). Who comes
up?
 Industry directories and online marketplaces: Are
there established players in your space already?
 Identify at least 2-3 key competitors to keep in
mind.
 D. Initial Resource Assessment (Broad Strokes):
o What are the very basic resources you'll need to get started?
Time, money, skills, equipment, etc.
 How to Research:
 Brainstorming and listing: Simply list out everything
you can think of that you'll need to begin.
 Rough cost estimations: Get very ballpark figures for
essential startup costs (e.g., website domain, basic
software, initial inventory – if applicable).
II. Intermediate Research: Deepening Market Understanding & Planning
(Strategy & Planning)
At this stage, you're moving from validation to planning. Research here is about
understanding your market in detail, refining your offering, and building a
preliminary business plan.
 A. Detailed Market Analysis:
o Market Size & Potential: How large is the potential market for your
product/service? Is it growing, shrinking, or stable?
 How to Research:
 Secondary research reports: Look for industry reports,
market research data (e.g., from market research firms,
 industry associations, government statistics). Often
available online (some may be paid, others free).
 Google Trends and Keyword research: Analyze search
trends for relevant keywords. Is interest in your topic
growing?
 Competitor analysis (market share): If data is
available, try to estimate the total market size based on
competitor revenue or customer base.
o Target Audience Segmentation: Break down your initial target
audience into more specific segments based on demographics,
psychographics, needs, behaviors, etc.
 How to Research:
 Surveys and questionnaires: Create structured
surveys to gather data from potential customers about
their needs, preferences, and demographics.
 Focus groups: Conduct small group discussions to get
deeper qualitative insights into customer motivations and
behaviors.
 Analyze competitor customer base: Who are their
customers? Can you find demographic information or
customer profiles?
 B. Competitive Advantage and Differentiation:
o What will make your business stand out from the competition?
Price, quality, features, customer service, innovation, niche market,
etc.
 How to Research:
 SWOT analysis of competitors: Analyze competitors'
Strengths, Weaknesses, Opportunities, and Threats.
Identify gaps you can fill and areas where you can
outperform them.
 Value Proposition Refinement: Based on competitive
analysis and market understanding, refine your value
proposition to be unique and compelling. What's your
"unfair advantage"?
 Benchmarking: Compare your potential product/service
and business processes against best-in-class competitors.
 C. Product/Service Development & Refinement:
 o Detailed feature planning: Outline the specific features and benefits
of your product/service.
 How to Research:
 Customer feedback integration: Incorporate feedback
from basic research (conversations, online forums) and
intermediate research (surveys, focus groups).
 Minimum Viable Product (MVP) planning: Define the
core features of your MVP to test with early adopters.
 User stories and use cases: Develop scenarios of how
customers will use your product/service to ensure it meets
their needs effectively.
 D. Operational Planning (Basic Processes):
o Outline key operational processes: Production, delivery, customer
service, marketing, sales, etc.
 How to Research:
 Process mapping: Visualize the key steps involved in
delivering your product/service.
 Supplier research: Identify potential suppliers for
materials, services, or equipment.
 Technology requirements: Determine basic technology
needs (website, CRM, accounting software, etc.).
 E. Financial Planning (Initial Projections):
o Develop basic financial projections: Startup costs, revenue
forecasts, expense budgets, break-even analysis.
 How to Research:
 Cost research: Get more accurate cost estimates for
equipment, supplies, marketing, staffing, etc.
 Pricing strategy research: Determine the optimal
pricing strategy based on value proposition, competitor
pricing, and cost structure.
 Revenue modeling: Develop different revenue scenarios
(best case, worst case, most likely) based on market size,
pricing, and sales projections.
III. Advanced Research: Optimization, Growth, and Long-Term Strategy
(Scaling & Expansion)
At this stage, your business is likely operational or about to launch. Research now
focuses on optimizing operations, driving growth, adapting to market
changes, and planning for long-term sustainability.
 A. Advanced Market Trend Analysis:
o Monitor industry trends and disruptions: Technological
advancements, regulatory changes, shifts in consumer behavior,
economic factors.
 How to Research:
 Continuous industry news monitoring: Subscribe to
industry publications, blogs, podcasts, and follow key
influencers.
 Scenario planning: Develop contingency plans for
different market scenarios (e.g., economic downturn, new
competitor entry, technological disruption).
 Attend industry conferences and events: Network
with industry experts and learn about emerging trends
firsthand.
 B. Customer Lifetime Value (CLTV) and Retention Research:
o Understand customer behavior and loyalty: Analyze customer
purchase patterns, churn rates, and satisfaction levels.
 How to Research:
 Customer data analytics: Track key customer metrics
(e.g., purchase frequency, average order value, churn
rate).
 Customer feedback systems: Implement systems for
gathering continuous customer feedback (e.g., surveys,
feedback forms, customer reviews).
 Loyalty program analysis: If you have a loyalty
program, analyze its effectiveness and identify areas for
improvement.
 C. Marketing and Sales Effectiveness Research:
o Measure and optimize marketing and sales channels: Track ROI
of different marketing campaigns, analyze sales conversion rates, and
identify effective sales strategies.
 How to Research:
  Marketing analytics dashboards: Use tools to track
website traffic, social media engagement, campaign
performance, and conversion rates.
 A/B testing: Experiment with different marketing
messages, ad creatives, and sales approaches to optimize
effectiveness.
 Sales data analysis: Analyze sales data to identify top-
performing products/services, customer segments, and
sales channels.
 D. Operational Efficiency and Scalability Research:
o Identify areas for operational improvement and cost reduction:
Streamline processes, automate tasks, optimize supply chain, improve
quality control.
 How to Research:
 Process audits and analysis: Review existing
operational processes to identify bottlenecks and
inefficiencies.
 Technology evaluation for automation: Explore
opportunities to automate manual tasks using software
and technology.
 Supply chain optimization research: Explore
alternative suppliers, negotiate better terms, and optimize
logistics.
 E. Financial Performance Monitoring and Forecasting (Advanced
Modeling):
o Track key financial performance indicators (KPIs): Profitability,
cash flow, return on investment (ROI), etc.
 How to Research:
 Advanced financial modeling: Develop sophisticated
financial models for forecasting, scenario planning, and
sensitivity analysis.
 Benchmarking against industry peers: Compare your
financial performance against competitors and industry
benchmarks.
 Investor relations research (if seeking funding):
Understand investor expectations and metrics they will
focus on.
 F. Legal and Regulatory Compliance (Ongoing):
 o Stay updated on relevant laws and regulations: Industry-specific
regulations, data privacy laws, employment laws, etc.
 How to Research:
 Legal counsel: Engage legal professionals to advise on
compliance matters and stay updated on regulatory
changes.
 Industry association resources: Industry associations
often provide information and guidance on regulatory
compliance.
 Government websites and publications: Monitor
relevant government websites and publications for
regulatory updates.
Key Takeaways on Research Iteration:
 Research is Continuous: It's not a one-time activity. You'll be researching
throughout the entire lifecycle of your business.
 Start Simple, Get Deeper: Begin with basic research to validate your idea,
then progressively delve deeper as you move through the stages of business
development.
 Adapt Your Approach: The specific research methods and factors will vary
depending on your industry, business model, and stage of development.
 Be Data-Driven: Base your decisions on evidence and insights gathered
through research, rather than solely on intuition.
 Don't Be Afraid to Pivot: Research might reveal that your initial
assumptions were wrong. Be prepared to adapt your business idea, target
market, or strategy based on your findings.