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10 ways to
evaluate the market
AUGUST 20, 2020
Market Research

Before you start a business or tries to expand your business into a different market, it is imperative to conduct proper market research. For this article, I have put together a calculator that produces a score of how relevant your business is. I based it on an excerpt of the same title from Personal MBA, a renowned book on business.

10 Ways to Evaluate the Market

Look at the market you want to challenge and rate each of these factors from 0~10 (0 is extremely unattractive and 10 is extremely attractive). When in doubt, be conservative with your estimate.

How badly do people want or need this right now?

0

Renting an old movie is typically low urgency.

Seeing the first showing of a new movie on opening night is high urgency, since it only happens once

What is the highest price a typical purchaser would be willing to spend for a solution?

0

Lollipops sell for $0.05、

aircraft carriers sell for billions

How much would it cost to create and deliver the value offered, both in money and effort?

0

Delivering files via the Internet is almost free

Inventing a product and building factory costs millions

How quickly can you create something to sell?

0

You can offer to mow a neighbour's lawn in minutes.

Opening a bank can take years.

Are there related secondary offers that you could also present to purchasing customers?

0

Customers who purchase razors need shaving cream and extra blades as well

Buy a Frisbee, and you won't need another unless you lose it


When you're done with your assessment, add up the score. If the score is 50 or below, move on to another idea–there are better places to invest your energy and resources. If the score is 75 or above, you have a very promising idea–full speed ahead. Anything between 50 and 75 has the potential to pay the bills, but won't be a home run without a huge investment of energy and resources, so plan accordingly.

How many people are actively purchasing things like this?

0

The market for underwater basket weaving courses is very small

The market for cancer cures in massive

How easy is it to acquire a new customer? On average, how much will it cost to generate a sale, in both money and effort?

0

Restaurants built on high-traffic interstate highways spend little to bring in new customers

Government contractors can spend millions landing major procurement deals.

How unique is your offer versus competing offers in the market, and how easy is it for potential competitors to copy you?

0

There are many hair salons, but

very few companies that offer private space travel

How much will you have to invest before you're ready to sell?

0

To be a housekeeper, all you need is a set of inexpensive cleaning products.

To mine for gold, you need millions to purchase land and excavating equipment.

Once the initial offer has been created, how much additional work will you have to put into it in order to continue selling?

0

Business consulting requires ongoing work to get paid

a book can be produced once, then sold over and over as is


0