Common mistakes to avoid when starting a business

A business that understands its customers, their buying habits and consumer behaviour can: 

• sell more effectively
• compete with other suppliers
• target new customers
• identify new opportunities

Avoid the following market research mistakes to give your business a better chance of success.

Lack of in-depth market research

Lack of proper market research and competitive analysis is one of the key problems for new businesses. It's easy to get carried away with a business idea and set up a business without testing its market viability or demand forecasting.

Accurate market data, industry insights, and trend analysis will help prevent over-optimistic forecasts - see market research and market reports.

It is also important to consider what your audience or customer needs are and to use market research to test them. You should factor customer, user experience (UX) insights, and consumer trends feedback into any products or services you are designing - see user-centred design.

Keeping your business idea to yourself

Failing to share your business ideas with people you trust means that you will miss out on objective feedback and market validation.

Brainstorm with colleagues to give you valuable perspective. Note any good ideas you get from brainstorming and use them when developing your business.

Ask potential customers what they think of your plans or allow them to examine a prototype. This can help you find if your product solves customer problems or if it's new and unique and they would buy it.

For further information see research and develop ideas, new products and services.

If you want to keep your ideas secret, consider using a non-disclosure agreement. It is also known as a confidentiality agreement - see non-disclosure agreements.

Not researching your marketplace or potential customers

Insufficient research can lead to targeting the wrong audience and poor market segmentation. It can also cause misunderstanding your marketplace.

To avoid this:

• research and use information, such as free government data, industry reports, or your own network of contacts
• carry out field research,customer surveys, and focus groups to explore customers' profiles and discover buying trends and consumer preferences
• swap ideas with people in the same sector or join industry forums and business networks

For more information, see market research and market reports and understand your customers' needs.

Invest Northern Ireland's Business Information Centre provides free access to market research and company databases to help local companies develop their product or service and find new customers.

Watch a video explaining market research and what it involves.