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How to Gauge Demand for Your Business Idea

If you are someone who thinks you may have some great business ideas and would like to be a small business owner, but you are uncertain, caution is understandable. Most successful small businesses begin with this uncertainty! However, there are ways to gauge the demand for your new business ideas through simple uses of the web. They can let you know whether your business idea is on a sure footing, allowing you to decide how to proceed with your own business!


How To Gauge Demand 


There is no single standalone way to gauge the exact demand for your new business idea. However, there are various ways that, when added up, can help you understand whether or not you have a good business idea on your hands! The best small business ideas are born from understanding the following factors and their research methods.

Does Your Own Business Solve A Problem, Or Fill A Niche?

One of the fundamental principles of your small business idea should be based on whether it solves a problem or fills a niche that you feel nobody else is.


This does not have to be a complicated problem either. For example, if there is a substantial Indian population in your area, but there isn't an Indian street-food truck business, this is a problem your business plan can solve and a niche you can fill. 


Do your market research and form a business plan when starting a small business idea. Most successful small business ideas have identified their target market in the area, know their potential customers, and have identified a product or service in high demand that is not being met. 

Research Keywords To Determine Demand!

There are various ways online to determine whether there is demand for your small business ideas. One of these is Google's Keyword Tool, an excellent way to conduct some market research, and best of all, it is free and fast!


All you need to do is input your small business ideas' keywords and keywords related to your small business ideas. For example, 'Indian food truck' may be your primary keyword. Related keywords may be 'Indian Street Food', or you can go more specific, using Geo Targeting searching for your keywords followed by, for example, 'in Adelaide', or by sorting your results by 'Local Monthly Searches'. 


This can help determine whether there is not only demand for your small business in your specific area, which is crucial if you are a small business. Understanding local demand, in particular, is key to a successful business.


Google will let you know the total global monthly searches for your keyword, things closely related to it, and the entire local monthly searches. 


You can also change the search parameters and how the results relate to your keyword, from 'broad', 'exact' and 'phrase'. This will dictate how closely the results Google yields are connected to your keywords. Google will also inform you of how much competition there is for ranking your keywords.


While high competition implies demand, it also suggests that much competition is filling that demand!

Use Google Trends!

Google Trends is an analytics tool that helps users come to an understanding of what the current trends are in terms of search engine queries. Pivotally, it can help you understand whether the demand for your own business idea is increasing or whether it is on the decline. 


Something common to the best small business ideas is jumping into a growing market at the right time. Google Trends shows how many people are searching for a particular keyword or things closely related to it and how this has trended over time. This allows prospective owners to judge whether the industry they plan on entering is on the incline or decline, whether demand is high or not, which is crucial knowledge when committing time and money to a small business idea.


You can also Geo-Target your results, which can make all the difference; perhaps a Global Google Trends search would yield results showing a downward trend in keywords related to your small business idea over the past 5 years. However, a search local to your area or country might indicate that, in fact, demand for your small business and product has been on a steady, sustained increase for the last 10!


For a small business, understanding your local audience and target market demand in your area is extremely important.

Research Your Competition!

Understanding your competition is critical. Though you may have used Google's analytics tools to discover a high demand for your small business in your area, knowing whether that demand is being met by someone else is just as important.


If there are businesses in your local area that operate in the same niche as you, but they do not have a good social media following, have not been open for long, or are negatively received on review websites. It may be worth competing with them if you believe your business can do what they do much better, and you have a marketing strategy and other plans to help you fill their niche more successfully.


However, if the business in your area is well-reviewed, is well-established in the community, and has an excellent social media presence or following, then It would be fair to assume they fill the niche in your area very well. Therefore, starting a new business to compete with theirs from scratch is not the strongest new business idea.


Conclusion


As we have established, the best new business ideas identify whether there is a demand for their small business, if that demand is being met in their area, and if the answer to those questions is no, they fill that niche. We have supplied three of the easiest and most-efficient ways to get a really good understanding of these questions, which should help you come to a decision on whether there is indeed a demand for your business ideas.


If you have a new business idea, take your time and research; great business ideas are built on careful planning and thought. But if you have determined that there is demand for your small business, and you have done your research using the methods we have suggested, don't be scared to embark on your new adventure!


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Frequently asked questions

    • Does There Need To Be Demand For My New Business To Be Successful?

      As a rule, yes. A new business can create a demand for a product or service people didn't know they wanted or needed, but this is risky. A new business should cater to a demand not yet met by anyone.

    • How Do I Know If My Business Idea Is Good?

      There is always an element of risk in setting up a new business. Ensuring your idea is sound is vital before committing. Do your market research and ask yourself; does my business idea fill a niche or solve a problem? Is there a lack of competition in this niche in my area? Study Google Trends and research to determine whether your business idea has potential.

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