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Protect Yourself and Your Investors with Simple, Affordable
Due Diligence
Many
millions of dollars and countless hours are wasted annually by entrepreneurs who
pursue their dream project only to discover that it just won’t fly. Worse yet,
they may have a good idea but “miss the market” simply because they haven’t done
their due diligence.
If your
project seems viable, you owe it to yourself, your family, team, investors and
anyone else who supports you to validate your idea before
proceeding. Well researched projects are more likely to be
viable, profitable and attractive to potential investors.
The Idea
Behind our First-Step Market Research
Full-scale, in-depth
market research is costly. Professionally prepared industry reports
alone are
typically priced from $650 - $5,000. Other key research, such as focus groups or
targeted surveys of prospective users, usually costs $3,000 - $5,000
or more. This can be
prohibitive to the entrepreneur trying to get a general feel of whether or not
to proceed with a project.
As an alternative, first-step research is affordable
and can give you enough directional information about your project to make key
decisions.
Basic research can't always
confirm that an idea is definitely
viable. But it can tell you if an idea is not viable
or clearly needs reformulation. That
will help you avoid the needless expenditure of time, energy and money on a project
that would not have succeeded in its current form.
Research Objectives
At the very least, you
should
seek answers to these
key questions about your project:
- What is
a likely profile of the target customer?
- Does a
similar product(s) already exist, and if so, what is the existing
competitive landscape?
- What
are the likely route(s) to market (how, where
and by whom might it be sold?)
- What
probable range of pricing applies to this product?
- What is
the approximate size of your
potential market?*
-
What do potential customers think of the product/service as it's
currently proposed?
What You Should Already Know
Before engaging us, you should already have
preliminary answers to several key questions. Without these, we can't
effectively conduct research.
-
What
exactly is your product or service?
-
Who is
your primary target customer and market/niche?
-
What
will your product/service DO for customers (what is its value proposition?)
Research
Options
Depending on your
project and budget, we work with you to design a package using services such
as those below. It may take more than one of the following to provide the
information you need to know about your project.
Market Data Search
A trained professional conducts Internet-based research by using a variety
of keywords related to your product and probable industries.
This search often reveals significant data that the
entrepreneur hasn't personally uncovered. You receive a
1-2 page summary report of initial findings and recommendations.
- Advantages: Quick,
can typically reveal the existence of competing
patents or products,
suppliers, distributors, price point and relevant industry information.
Provides an independent, non-biased look at
the project. May strengthen your project presentation for
investors.
-
Disadvantages:
Doesn’t provide prospective user feedback.
Viability
Survey
We
consult with you and develop a brief survey (up to 10 questions) that can be administered
in person or via phone. The survey helps answer basic questions,
which may include
probable product acceptance, price point, where users would expect to
buy it prospective user feedback and more. Note- actual sampling
is not
included and must be administered by the client.
Sampling services are provided upon request.
- Advantages: It is highly qualitative, meaning you interact directly with
respondents and gain insights into nuances that other surveys don’t
offer.
- Disadvantages: Is labor and time-intensive.
The interviewer's personal involvement
(particularly yours) may taint respondents’ willingness to be candid.
Viability Survey (Internet Based)
We
prepare and launch an Internet-based survey
(up to 10
questions)
that
can be emailed to prospective respondents (client supplied). The survey can
help answer basic questions, such as probable
product/service acceptance, possible price point, where
users would expect to buy it and various other types of
prospective user feedback. You receive a
2-3 page summary of responses along with
brief analysis and recommendations.
- Advantages: Online format provides anonymity that encourages respondents
to be more candid. Requires no time to administer.
More efficient way to gather quantitative data.
- Disadvantages: Sometimes difficult to get sufficient numbers of
respondents to complete. Doesn't provide real-time qualitative clues/nuances about
respondents’ reactions.
Investor Feedback
Survey
Want to
know how prospective investors view your project? Mail them a link and ask
them to take this anonymous, two-minute Internet-based survey. It gives you
the inside view from investors and others who saw your presentation. If
you're trying to improve your fundraising efforts, it helps to know what's
not working so you can make adjustments.
-
Advantages:
Provides candid feedback that investors may not feel comfortable
delivering in person. Provides entrepreneurs with highly useful,
quantified data about their project and presentation. Inexpensive, easy
to distribute invitation via email.
-
Disadvantages:
Doesn't provide in-depth, qualitative feedback.
Investors may not bother to take time to complete it.
We
also offer more in-depth research options.
For example, if you
wish to launch an Internet-based survey but want it emailed to a significant
number of potential respondents who meet your potential user criteria, and
you want a guaranteed number of actual responses for statistical viability,
we can provide a custom quote for this service. Or, if you want
professionally prepared market data on your proposed industry, we can advise
what reports are available and at what cost. Ask for details.
*Market data,
particularly about market size, may not be readily available for all
projects without purchasing costly industry reports. When this occurs, we
will use general assumptions and extrapolate to the best of our ability,
providing you with the basis for our projections. However, no warranty can
be made as to the accuracy of these estimates.
Find out about ALL of our services.
Email us if you'd like more information. Or call (707)
888-9700.
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