This past Tuesday night I had the privilege of attending a session within the series Entrepreneur 101 which is hosted by MaRS Discovery District. The topic of discussion for this particular presentation was Market Analysis for B2B startups. The presenters were Usha Srinivasan and Daniel Colquhoun who highlighted the importance of analyzing both your market as well as your potential customers.
Market Analysis
Market Analysis is a critical step for startups so that they can be well informed about the environment that they are about to launch their product or service into. Three things to research about the market are as follows:
Market Intelligence
Figure out what products and services are already successful in the marketplace that relate to your venture. Is your idea a copycat, complimentary, or contrary to existing businesses?
Market Size
Take a look at who may be your potential customers, and how many of them exist. You also want to narrow down your market to your geographical region to better target potential clients.
Industry Within the Market
To find out which industry may be a good fit for your product or service, research where investments are being made. You may also want to consider the barriers or lack of barriers that are involved in a potential industry you may want to enter.
Customer Analysis
Customer Analysis is another part of market analysis that is often times over looked; however, the customer’s values and emotions play a big role in whether a product or service is successful. Two things to research about customers are as follows:
Pricing
It’s important to outline the benefits of your product or service clearly and see how it aligns with what people are willing to pay for them.
Communication
Different people understand information in different ways. Think about how your potential customers receive messages and what channels will be most effective in delivering them.
How do you begin to answer these questions?
- Online resources: USPTO and WIPO
- Speak directly to customers to get their opinions on your product and the market
- Contact professionals in the business of market analysis for an expert opinion
The presentation overall was highly engaging and informative. MaRS Discovery District has also uploaded the slideshow here. If you would like assistance in analyzing the market we can help. Please feel free to contact us for further information.
