According to the Small Business Administration (SBA), there’s a 50% chance your business will fail in the first five years. But what can entrepreneurs do to maximize the chances that their businesses will succeed? Arthur Blank and his partner Bernie Marcus wrote a detailed business plan, and researched the market place for nearly two years before they launched Home Depot. Jennifer Hyman from Rent the Runway conducted market research and proof of concept testing long before she went to investors for funding. All of these activities raised the odds that these companies would make it past five years and inspired investor confidence.
As a serial research technology entrepreneur myself I can personally attest to the power of market research as a success strategy. Not only does research serve to ensure you have a robust business plan, it also validates your go to market positioning and strategy for potential investors.