Solopreneurs, Avoid the No. 1 Small-Business Marketing Mistake

In their enthusiasm to begin their new ventures, many solopreneurs jump into the marketing of their businesses and miss the all-critical first step. In my work with clients, this is a common conversation:

Me: “What is your biggest current marketing challenge?”

Solopreneur: “I’m not attracting enough prospective clients.”

Me: “Tell me about the market research you have done.”

Solopreneur: “I didn’t really do any. I just came up with this great idea for a business.”

A variation of this conversation is when the owner of an existing solo business introduces a new service without properly researching the market.

The solopreneur in both situations has made the No. 1 small-business mistake: she or he did not conduct adequate market research.

The solopreneurs who come to me for marketing help typically started their small businesses with a fairly good sense of their market. They relied on gut instincts to make their initial marketing decisions. But the reality is this: “fairly good” and “gut instincts” usually aren’t good enough to survive.

What Does Small-Business Market Research Look Like?

The goal is to conduct accurate market research and then make wise changes to the existing marketing plan.

Small-business market research focuses on: potential customers, existing customers, the competition, and the business environment. The ultimate goal, of course, is business success. Market research provides information useful in developing short-term and long-term marketing plans.

The objective is to:

1. Identify potential target markets

2. Identify customer needs and wants

3. Determine if the product or service meets customer needs and wants

4. Determine the best marketing techniques for each market

5. Determine how market and societal trends could affect the business

6. Examine the competition

Market research ultimately saves time, effort, and money—all of which are critical assets for solopreneurs. It’s no exaggeration to say that market research can be the difference between small-business success and failure.

When I work with solopreneurs who need market research, I encourage them to ask questions like these:

1. Who are my potential customers?

2. Where do they live, how old are they, what is their education level, what is their income?

3. How do my potential customers make decisions?

4. What are they willing to pay for what I am offering?

5. Can I offer my product or service for that price?

6. What are my existing customers’ opinions of me?

7. How do my existing customers view my business, when compared to my competition?

If those and other questions specific for the circumstances are answered, then solopreneurs are in a stronger position. They can interpret the research results, examine their existing marketing, and make smart decisions about how their marketing should be adjusted.

Share Your Thoughts

How has market research helped your small business? Share you experiences in the comments below.