Conducting market research,
how do you go about it?

Market research helps you identify opportunities and threats for your business. Who are your potential customers, and how do you distinguish yourself from the competition? That may sound complicated, but it's not as difficult as it seems, says Michael Petit of Markteffect. "You're already thinking about your business a lot in your head. Put it down on paper. That forces you to think a little further."

Look at what's happening in your industry

Who are the key players in my industry? How much revenue do they generate? How many start-ups and closures are there? What rules do I need to comply with? What developments or trends are there? Chamber of Commerce advisor Juliëtte Geers points out that there is a lot of reliable information available online for industry research.

You can take a look at the Ondernemersplein (Entrepreneurs' Square) for relevant legislation and regulations, average turnover figures, and industry organizations and associations. For trends in the industry, you can consult banks and the KVK Trend Report.

Another valuable approach to market research is to engage individuals from other industries to contribute their insights. "Avoid tunnel vision. It is easy to become overly focused on your own industry, while there is much to learn from others."

Learn everything about your customers

By describing your (future) customers as accurately as possible, you can clearly identify your target group. Where are your customers located? What are their demographic characteristics, such as gender, age, and income? What hobbies and daily activities do they have?

Be aware that you are already conducting research. Geers: "When you talk about your company at a party, you are already gathering information."

According to Petit, how thoroughly you conduct customer research depends on the type of business you are starting. "If you are starting out as a freelance marketing specialist, you probably already know what kind of customers suit you. You have likely built up a network and can find assignments from there."

When launching a consumer product on the market, it is also important to examine the customer journey. "This allows you to describe the orientation and selection processes that a consumer goes through before becoming your customer."

Find out who your competitors are

By observing what the competition is doing, you can discover new opportunities. "If you want to open a hair salon and you see that your competitors only work by appointment, then you can offer walk-in service. This allows you to offer a specific service that sets you apart from your competitors," says Geers.

A competitor analysis allows you to identify your company's strengths and weaknesses in relation to your competitors. "Check out websites, social media, research prices, hourly rates, and whether they offer discounts. Request a quote from a competitor; this will provide you with a lot of valuable information."

With the Location Scan and the KVK Business Counter, you can see how many other entrepreneurs are located in the area.

Analyze the environment

If you are starting a business with a physical location, the location plays a major role. An environmental analysis allows you to assess the opportunities and threats in your business's environment.

First, look at the zoning plan, which can be requested from the municipality. Also consider the economic situation and the future: are there many job opportunities? Are there any construction plans? Geers: "But also consider the population structure: are there many young families, or is the neighborhood aging? You can view the population structure at Statistics Netherlands (CBS) and even per neighborhood on the Funda website."

This article was published on April 18, 2022, on the NU.nl website.