Here's The Best Way To Market Test Your Business Idea
Starting a business is no easy feat and throughout our lives there will be many moments where we can come up with great business ideas that serve purpose or that we think are really great ideas. But just because something is a great idea, doesn't necessarily mean there is a market for it or if it can be delivered for the right price range.
In a globalised world where things can be manufactured in other countries cheaper or even competing with long standing bigger businesses can be a challenge all before we even get to discussing capital and getting your idea to market.
Today, I want to discuss a few of the measures I have developed and learned over the past few years with the development and growth of my VALLONE supplement business.
Local Farmer's and Community Markets
Local markets have long been a staple of community life and offer a diverse range of products from fresh produce to handmade crafts. All of us have fond memories of the smell of freshly fried chips, doughnuts and all the great local foods. Walking around the grounds on a weekend with our parents and some even came equipped with rides and things to do.
These markets play a crucial role in strengthening local economies. By building a circular Flow economy often hosting local store holders with local buyers and providing opportunities for start-ups while encouraging community engagement and local markets serve as an economic boost for their communities.
They provide the best low cost opportunity to test your business idea and receive feedback which can help you develop pricing models and market need as well as any enhancements your product needs.
What Is a Circular Flow Economy?
In short a circular flow economy is one where goods and services are produced locally and purchased locally keeping money within the community and its one where everyone benefits. The purchaser buys from a local business who sources their goods or services from a local manufacturer who employs a local who derives their income from the work produced.
The model can be flawed in relation to economic growth as there needs to be an increase of money coming in to enable expansion, which is usually done through trading with other communities. Much like global national trade but at a community level. Local Governments also provide financial support which often enables the growth to occur and as that financial support comes from rates and taxes paid by locals, it comes back to them rather than to international corporations.
Local Markets are also a lot more sustainable as locals tend to care more about the mess they make and focus on sustainability and the environmental impacts as farmers who rely on the environment participate in markets alongside other local businesses. The shared community vision is driven united.
Affordable Way To Test The Market
I commenced a health supplement business recently surrounding around Australian made products that are grown and manufacturered here in Australia with many ingredients sourced from Aussie farms. As someone who uses the products often I really wanted something locally sourced and I didn't have many options.
A big part is that is cheaper to get the products and ingredients sourced from India or China and Australian made and sourced products are a lot more expensive, but I really wanted to support Australian jobs and our industry.
So I developed my product and tested it at market, while it isn't a multi million dollar slice, I have been growing slowly in the market where people are also looking for Aussie made supplements who share my vision. Price is a little higher and I can't compete with imports so my sales volume is a lot smaller but my product is getting out there and people are starting to purchase online which is a great sign.
Farmers markets often offer use of tents, tables and even power if you need it all for a low cost, in most markets I have paid under $200 for the day and it's a relatively cheap way to connect with my market audience and find the people I am looking for.
All businesses can benefit from first testing their product at local markets to see if the market exists, it might take you a few times but eventually you will be able to see how viable your goods or services are.
Got other ideas on how to break into the market? Let us know in the comments section below.
image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services
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Indeed, testing the market before expanding is a necessary step for every entrepreneur, and local markets seem to be an ideal choice for this purpose.
Yup, it's a great way and low cost compared to other methods
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