Test Your Product By Area
Another way to use demographic research is by testing the popularity of a product within a chosen community. How do you know it will be successful in that particular locale?
If you are not an expert on your market, then it’s time to get to work. There are no shortcuts here.
You must look at the community’s:
Purchasing power. Find out the degree of disposable income within the community.
Residences. Are homes rented or owned?
Means of transportation. Do prospective customers in the area own vehicles, ride buses or bicycles, and so on?
Age ranges. Does the community consist primarily of young people still approaching their prime earning years, young professionals, empty nesters or retirees?
Family status. Are there lots of families in the area or mostly singles?
Leisure activities. What type of hobbies and recreational activities do people in the community participate in?
Large and fast growing markets have the power to pull mediocre companies into greatness, and conversely, dying markets can pull otherwise solid companies into the ground. If you are going to devote your life to an idea, the market where you operate better be big enough (or growing at such a fast rate) to support a meaningful and enduring company.
Your secret sauce needs to be original. If it’s obvious, that is almost always a bad sign. The best ideas have a secret sauce that is transformational, not incremental.
Your job in the idea stage is to find the things that make your idea bad. Try to kill your idea, and then, one-by-one, iterate and eliminate the negative aspects of the idea.
Nobody is going to steal your idea. Think about it – do you really think your idea is so great, so original, that somebody who hears it is going to go home, quit their job, and devote their entire lives to it? And be successful? The chances are near zero.
For more on this topic, visit: https://fi.co
Download the 10_rules_worksheet to check off the rules as you get about developing your idea.