Can your small business make money? Try Market Testing

Market testing is a great way to estimate sales. What’s better than the opinions of potential customers and their own estimates of their annual purchasing?

Let’s review the steps of market testing:

  1. Develop a prototype, model or description of the product or service that you can show to others. Most ideas for new products or services don’t work the first time. With a model or prototype, you can photograph it or create a picture of some kind and demonstrate it to a prospective buyer. It also allows you to try it out for yourself to make sure it works. (Be sure to keep accurate notes of your research; you may come up with an even better idea later.)
  2. Seek out potential customers with your sample or prototype and ask if they would buy it, how often and how much hey’d buy. Be sure to call on the individual who makes buying decisions. Then ask them how much they’d pay for this product. If people criticize your new product idea, ask them why. Ask how the product could be modified to make it more attractive.
  3. Listen carefully to comments and objections of the prospective buyer – their feedback is priceless. Most importantly, listen for their interest to purchase and comments on what they’d pay. From there you have the beginning of your sales forecast.

Even if you haven’t actually started your business, this live market test of interest will be an inexpensive way to see if you really do have what it takes to run a successful business. Good luck!

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