How to analyze your environment before launching into the market

As an entrepreneur you should know that launching into the market is an adventure in itself, the situation we are experiencing today has changed businesses forever. In any situation, with market research, are elements that will allow you to access the market correctly and be more certain of the steps you will have to take.

According to the Research Institute of different Universities, companies that use a market study grow on average 27.9% more than those that do not, achieving 8.9% more profitability. Likewise, the Institute of Failure points out that 43% of the ventures do not succeed due to failures in the business hypothesis and market opportunity. you can reduce uncertainty regarding the adoption of a product and you can also identify unmet opportunities in the market.

Although there is nothing that will guarantee the success of your startup, there you must take into account that startups are surrounded by a lot of uncertainty, so we suggest you not rely on how well other companies in the industry are doing and develop your own strategies; Analyze the market you want to enter taking into account the following recommendations:

What is the objective of the market study that you are going to carry out: you must be clear about what you are looking to obtain and what this information will be used for.

To whom is the product and/or service directed (Who is the client), for this you must ask yourself two questions: What is he looking for or what does he need? and if your product meets their expectations.

What industry it belongs to, you must understand what your reach is and how far your influence goes, the barriers you will have to face when trying to enter, how it operates, its size, etc.

The geography will let you know if it has a national presence or also in other countries.

Know the size of the market in your country and abroad, if applicable, to know the potential of your business, that is, size equals opportunity.

Doing an analysis of the historical growth and trends of the sector will allow you to know what direction it has taken. If the trend is going down, it is clear that the market is in decline, if the growth trend has remained stable, you can know that you have an opportunity to penetrate but it will not grow for sure, and if it is on the rise, it means that its growth can favor you, which guarantees profitability.

Review which are the main segments or market areas. In the Fintech industry, there are segments of payments, financing, insurance, remittances. Remember that the problems or needs change in each one of them and you should know which one you are offering a solution to.

Carry out a Porter analysis of market attractiveness, according to this model the degree of attractiveness of an industry is determined by the action of these five basic competitive forces that, together, define the possibility of obtaining greater profitability.

A market study should be part of a comprehensive business strategy for your startup, this will allow you to have a greater chance of success. Identifying your customers, knowing the real reason why they buy, and setting prices correctly are strategies that are related to reaching your sales objectives.