Tuesday, 20 August 2013

Two Reasons Why Market Research is Avoided

There is a very popular saying that tells us “failing to plan is planning to fail”.  Most people know the saying and it isn’t a difficult one to understand, yet it is the single biggest reason why start-up businesses fail.  Planning starts straight after the business idea has been conceived with market research, or at least it should.  Too many businesses though fail to undertake this most vital piece of planning, resulting ultimately in their failure.  There are two common reasons why budding entrepreneurs fail to carry out market research; impatience and fear.

Impatience
To undertake market research thoroughly enough for it to form the solid base of a new business takes time.  Sadly time is a resource that many starting up their own business simply don’t have therefore market research gets overlooked in the haste to have a business up, running and making money.  For others the excitement of the possibility of setting up a business sweeps them away and the entire market research phase gets totally ignored.

Fear
Carrying out a piece of research always entails the possibility of the results disproving the hypothesis, in other words, a concept can turn out not to be a valid business after all.  This fear that market research might lead to the business idea being proved unworthy frequently results in the process being avoided altogether.  For entrepreneurs with an original business concept the biggest fear is having their idea stolen and with it all the millions of pounds it would have made them.  In their determination to keep the concept a secret market research is limited, or even worse, totally avoided.

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