7 Key Tips to Get Market Feedback about Your Business Idea

So you’ve got your business idea, now the important thing is to get honest feedback to be sure your assumption is worth following through.

This step is crucial – an assumption about what the market needs or wants is great, but if it isn’t embraced by your target customer you’ll end up spending time, effort, and money unnecessarily.

Here are our 7 effective tips on how to get feedback from your target market.

 

 

1. Define your Target Market

This step almost seems so obvious that it doesn’t need to be stated, but defining your target market is perhaps the single most important step.

If you’re asking the wrong people about your idea, you’re going to get inaccurate feedback. This feedback will incorrectly alter your perception of your idea which may lead you down the wrong path. It’s just as bad not following a great idea through as it is following a bad idea through which won’t sell.

Objectively define your target market. Who will benefit most from your product? Do they have a likely age range? A particular area they live or work in?

Honestly answering these questions will allow you to tailor your approach, maximizing your chances of reaching the right people and getting the right feedback. Plus, you’ll save a ton of time by not getting having conversations with the wrong set of people.

 

2. Get Over The Idea That You Shouldn’t Tell People Your Idea for Fear of Them ‘Stealing it’

 Working with entrepreneurs (and being one myself), this is a phrase I have heard more times than I can count.

‘My idea is amazing, but I don’t want to tell other people because they might steal it.’

The only time anyone would actually put the effort into copying your idea is only if you make a huge success out of it, at which point it wouldn’t matter anyway because you would already be successful. And from the looks of it, the copycat never really wins.

The simple fact is, if you have a great idea, the best thing you can do is share your idea with everyone you can.

Now don’t get me wrong, in the last tip we’ve said that you should strictly define your target market, but there’s no harm in telling people who are not part of your target market because they may know other people who’d benefit from what you have to offer.

The trick is not to put nearly as much emphasis on opinions from people who are not from your target market; they won’t directly know the benefits/drawbacks of your idea because they won’t be thinking as potential customers.

3. Ask Your Potential Customers Face-to-Face

Physically asking your potential customers for feedback is hugely valuable. Asking specific questions and having conversations face-to-face can bring you highly valuable information that no other form of feedback can.

Face to face we’re much better able to read facial expressions and body language, getting a feel for what someone really thinks. Maybe they’ll be animated and enthusiastic, maybe they’ll be a bit more held-back, or maybe they’ll want more information and turn into one of your first customers.

The drawback of this method is something called ‘demand characteristics’ – that people may tell you what you want to hear. By and large though, these people are few and far-between. To alleviate thiss, remember to ask open-ended questions as much as possible.

4. Ask People Already in the Industry

If you can find anyone already in the industry your idea is based in, you can gain massively valuable feedback because it comes from a place of knowledge and practical experience. Imagine talking to Tiger about golf club comfortability. Imagine the value of the feedback you’d get from him.

This type of feedback is unique, the type your potential customers won’t be able to directly give you. One of the dangers, though, is in making sure not to ask someone who is a potential competitor. If they are, then of course their advice will be biased to their own interests.

If you manage to find someone objective however, their feedback will be as honest as it comes, because they’ll have nothing to lose in offering their advice.

 

5. Survey Your Target Market Online

Creating your own online survey is hugelyeasy these days. Using google surveys or the plethora of survey websites makes it so simple to get feedback on anything at all.

Online surveying can bring you huge feedback. If you go out for a day and speak to people face-to-face, you may be able to speak to 40-50 max. Because people can fill surveys in simultaneously, you have the opportunity to get massive amounts of data/feedback from relatively little effort.

The trick with this method is to ask the right questions and get your survey in front of the right people. Keep your questions short and concise, people don’t want to spend too much time on things they don’t get much out of.

Ask 2/3 questions at the beginning to define whether the person is a potential customer, then ask the most important questions to whether your idea will be well received. Keep it short, sweet and to the point.

 

 

6. Use Social Media Channels

Everyone is on social media these days. Putting surveys or questions on blast using multiple social media channels has the potential to bring you all the honest feedback you could ever need.

Facebook, LinkedIn and others offer specific targeting to get content in front of exactly who you want. Facebook charges relatively little to allow you to choose the age-range, location, gender plus other factors of who you’d like to target.

In this way you could share a survey or create content (like an article, blog post, video etc) with valuable content which then asks for feedback.

The great thing about online feedback is that people are more honest than in real life. Because it’s online, there isn’t much consequence on comments so generally people are far more willing to say what they really think.

This type of feedback can be invaluable and will help you make an informed decision on your idea.

7. Offer Something in Return for Feedback

 

Okay, maybe not that much…but we’re all busy these days and as a general rule people won’t be inclined to do something if they won’t get much out of it.

The way to get around this is to offer something small in exchange for someone’s feedback or opinion.

The trick is to give something which would be massively valuable to your target market, and less so to everyone else. Here’s where you’ll have to get creative; what would your target market really benefit from, but which won’t cost you a lot?

The best answer for this is specific information. You have your target market – think about what information they would benefit from and offer that in exchange for their honest feedback. Perhaps an article or a very short free e-book which you would then give them on receiving their feedback.

This will entice your potential customers to communicate and connect with you and because it’s online, they’re more likely to be honest. This also has the added bonus of catching their email addresses so you can stay connected with them for future.

 

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How to Finance Your Startup in 8 Effective Ways

(Here’s the link to the original article)

 

So you have your business idea, your business plan, (or business model canvas if you’re an early-stage startup (check out how to make your business model canvas here), and validated its need in the market, now you need the means to get it off the ground.

Ultimately the question of how to finance your startup depends on your circumstances and what kind of business you’re starting.

There are quite a few different roads available, some can be simultaneously walked down whilst others may give you all the capital you require plus a bit extra. Let’s take a look at some of these avenues.

1. Bootstrapping

 

From the old saying ‘pull up your bootstraps’, bootstrapping means to finance your business yourself, without any outside help.

This options viability depends on your personal finances and the type of venture you’re starting. If you have a substantial amount saved and your business doesn’t call for a huge amount of start-up capital and initial running cost, it’s entirely possible to commence using just your own funds.

Bootstrapping is an effective financing method if you can afford it – you won’t owe anyone anything and you’ll answer only to yourself. It is important, however, to choose wisely and take into account possible worst case scenarios.

What happens if the business fails, can you afford to lose that much capital? How long can you afford to finance the business yourself without any sales coming in?

As the old saying goes, ‘don’t put all of your eggs in one basket’. If you’re going to bootstrap, be sure to use a sensible portion of your finances, not all of them, and always take into account living and personal costs.

2. Friends and Family

Seeking funds from friends and family is probably one of the first ports of call and can be an effective form of financing.

Friends and family know you personally, so they’re more likely to lend to you and far less likely to ask for interest on return, plus they’ll be more flexible on repayment timing. However, this method can be somewhat treacherous.

Often, family relations and good friends don’t make the best business connections. If the business doesn’t go so well, will you be able to pay them back? Are you willing to potentially sour a relationship for funding? If you’re asked for a slice of your business in exchange, are you willing to let that person have a say in your business, or pay out the same percentage in equity?

3. Bank Loans

It’s only logical to seek a bank loan when looking for finance. There are government schemes which help provide bank loans to start-up enterprises, depending on which country you live in – a simple web search will provide the information needed.

Bank loans, of course, come with interest added onto the repayments. It’s worth shopping around for the best rates and perks, as some come with added extra’s like accounting software packages and web building tools.

You’ll need a clear business plan and an idea of where your revenue will come from before a bank will even consider you, and many will require assets to guarantee the loan.

4. Angel Investors

These are private individuals who have often succeeded in business themselves and are now looking to invest their own money.

An angel investor will want a share of equity in return for their investment and will often offer business coaching and mentoring, in part to impart their wisdom, in part to speed up return on investment.

It’s difficult to come up with hard rules on this type of financing – each investor will have their own preference of industry and their own business coaching style.

If you’re able to find one who takes a shine to your idea or you as a person, then not only could you get funding, but you’ll also likely gain a valuable asset to the business.

5. Venture Capitalists

VC’s are in business to make large amounts of money in relatively short time frames, so they go for big projects (we’re talking millions). It’s unlikely they’ll be interested in early-days and pre-revenue start-ups.

If you’ve got big plans and a hugely scalable idea though, it’s worth trying to meet a few VC’s. If you get one, their expertise, market contacts and sheer amount of cash could skyrocket your venture to dizzying heights – just make sure you have a viable exit strategy before you get into bed with a VC.

6. Credit Cards

Perhaps not the best method, but financing on credit cards can work if you’re sure that you’ll be making profit soon enough to cover the monthly repayments.

It’s best to shop around for the lowest rates, but be careful when it comes to spending on plastic, if you don’t strictly keep up with repayments the monthly charges can add up very quickly.

If this method must be used, it’s best in the beginning when you require small amounts of money for short periods, it’s by no means a viable long term option.

7. Grants

Governments provide grants for a whole range of business ventures. Science, the arts and engineering are just some industries where grants are available.

It’s definitely worth searching online for what grants may be available to you. Application processes are usually quite long and you’ll have to jump through a few hoops, but securing a government grant can give your business serious credibility in the market place. A quick web search for ‘business grants’ will give you an idea of what could be available to you.

8. Crowdfunding

Perhaps the newest and most fashionable form of financing. Crowdfunding is where large amounts of people each give you small amounts of money which add up to (hopefully) large amounts of finance. Read our article on effective crowdfunding tips here.

In return you’ll have to give them something, of course, depending on the amount a person gives. Small contributions could get them a mention on your site or your marketing, for larger pledges you could give out freebies, first chances to sample your product, or even shares and equity.

Crowdfunding success lies largely in how well you can connect to the general masses. If your business strikes a chord with people, for example something environmentally friendly or altruistic, or if you’re looking to provide real technological advancement for example, crowdfunding could do quite well for you.

The second important thing about reaching people through this method is delivery. People must be able to very obviously see your unique value proposition or be able to relate to you in some way.

You can start a crowdfunding campaign here or through sites like crowdcube.com and kickstarter.com.