Wise Words Wednesday: What To Do When You Forgot The Market Research

I just found a post, almost a plea, by Kim Darrell of Stitch-N-Stuff blog fame.

Her dilemma illustrates how important it is to do market research before you start selling your products.

I have discovered that what I should have done was do a lot of market research before I started this venture. Had I done this, I could have had all the essential information I needed to possibly generate sales faster.

And she is absolutely right.

Over the past couple of weeks, I’ve spoken with dozens of successful home business owners, as part of my expert home business owners interview series on Product Sellers Talk Radio. One of the key factors they contribute to their success is thoroughly researching their markets before starting business.

One of the recent interviews in my Summer Chat Series had some excellent advice. The owners of Gigi Hill Bags suggested an excellent method of doing market research — and it can even be duplicated online.

But what happens if you’re already in business and regretting the lack of research?

I’ll say that it’s never to late to start researching. There are many reasons why your products aren’t selling like you thought they would:

• No one wants the product
• No one else knows about the product
• The product costs too much
• The product doesn’t cost enough
• You promoted the product to the wrong people
• You promoted to the right people, but not in a way that engaged them.
• I could go on…

Find out why your product isn’t selling the way you want it to. Then do something about it.
And if you’d like to know more about Gabrielle and Monica’s strategy for market research, clear your calendar for Product Sellers Seminar from September 17-19, 2008. You can find more information about the online seminar at ProductSellersSeminar.com.

How Do You Grow A Home Based Business?

Welcome to Episode #38!

If you have the desire and the passion to start your own business, do your research and take the risk! That’s what two soccer moms did in 2006 and they haven’t looked back!

My guests this week are Gabrielle DeSantis-Cummings and Monica Hillman, the founders of Gigi Hill. They started this designer handbag direct sales company with the desire to provide women with stylish yet functional handbags.

Listen in as Gabrielle and Monica reveal how they conducted their market research, what they consider the Top 3 Tips for Business Owners, and the importance of managing your time well.

Join us in September when Gabrielle and Monica are guest speakers at Product Sellers Seminar!

How to Find Your Target Market

Welcome to Episode #18!

This week Michelle continues her “Starting Your Online Product Selling Business” series with co-host Stephanie Fish from Buckeye VA. Knowing your target market and where to find those customers is often the difference between success and failure as a product seller.

Michelle recommends choosing a target market (or niche) BEFORE you choose your product, although that advice is the opposite of what some internet marketing circles preach. Rather than just choosing a high-end target market with the hopes of making oodles of money, choose a niche that you have a true interest in serving.

If you have a genuine interest in your target market or past experience with a particular product, your knowledge and willingness to help these customers will become apparent and you will become a trusted figure in your niche, thus increasing your sales. If you just want to make money and don’t care about the customers in your market, that will also become apparent to the customers and you will fight an upwards battle to get sales.

Michelle also reviews some basic market research tips and discusses three ways in which you can find information about your chosen market. Setting up your business with these easy steps will help you become a success!

The Only Online Store Startup Checklist a Product Seller Needs

You’ve decided that you’re ready to start selling physical products online — but there are a hundred tasks whirling through your head, needing to be done. Where do you start? How do you keep track of it all?

I’ve worked with dozens of moms who are right where you are, so don’t feel bad. Just print out this checklist that I’m giving you and keep it handy.

Here are the steps you need to take to start your online store:

1. Figure out who your target market is and get to know them.
2. Decide how you want to acquire your products, either through manufacturing them, buying them at wholesale, purchasing them through a dropship program or recommending them as an affiliate.
3. Decide on a product name and domain name. Buy the domain name NOW!
4. Make your business legal, including choosing the form of business you’ll be starting (sole proprieter, LLC, etc) and getting your tax id.
5. Choose a business name. This does not have to be the same as your domain or product name.
6. Setup a business banking account, so that your checks and accounts will have your business name on them and you can keep your personal finances separate.
7. Choose a web hosting and shopping cart.
8. If you’re manufacturing a brand new your product, you’ll need to create prototypes, test them, ask other people to test them and do additional market research to make sure your product will sell.
9. Purchase any cottage licenses you may need for manufacturing products from other people’s patterns.
10. If you’re manufacturing a product from a cottage licensed pattern, you’ll need to test your product to make sure it is up to par.
11. If you’re going the wholesale, dropship or affiliate routes, open your accounts with the suppliers.
12. Begin building your website.
13. Once your website is build, including design and logo created and installed, products uploaded and site live, you’ll need to write a press release and submit it to press release directories and your local news media.

Any questions? Feel free to ask!

Using Your Mailing List as a Test Market

Your mailing list is a great way to promote your products and stay in touch with your customers. You may not realize it, but it also serves another purpose. You can use your mailing list as a test market for new products and services you may be thinking about offering.

A test market is a limited group of people you offer a product to in order to receive feed back before you put the product up for sale to the general population. Using a test market will allow you to get feedback on your product. Your test market may suggest adding a feature you hadn’t thought of or offer other advice which will be helpful in fine tuning your product.

Your mailing list is a natural choice for a test market, as they have already expressed interest in the type of products you offer. For example, if you have sold cloth diapers made out of organic fabric before, perhaps you can use your mailing list of people who have bought that product as a test market for a cloth diaper made with a new blend of organic fabric. You already know they are interested in organic cloth diapers; therefore, they would probably appreciate a chance to test your new product.

You can choose to offer your test products at a normal rate, a reduced rate, or even for free. Let them know that you are still working out the “bugs” and that the product you are offering may be different from the finished product you are going to sell to the general public. Letting them know this in advance can ward off any ill feelings; if one of the people on your mailing list buys a test product and later sees a similar product with slightly different features for sale, they may feel they got ripped off.

If you are going to offer the product at a reduced rate or give it away for free, let them know you would appreciate their feedback in exchange. Have a form set up online where the customer can fill out their opinions and advice. Ask them to leave a recommendation that you can use on the landing page once the product is finished.

You can also use your mailing list to get feedback when you are in the development stages of creating a product. For instance, you can send out an email with a link to a questionnaire form and ask them to fill it out. If you know the general features of the product you are creating, you can ask your test market what are their three biggest concerns are related to the product. If you end up receiving a bunch of questions in the same general areas, you know that is the area you would like to focus your product on.