QUESTION: What is the process for finding a MARKET (not a 'PRODUCT THAT WILL SELL')

[Formless]

Everything in life has fallen in place and I've gathered up the courage to try e-commerce again, I want to do it the zen******* way this time though.

Somewhere, a long time ago, Zen has said:

1) Find a market (not 'a product that sells')
2) Find out what thing(s) they want
3) Find out how you'll get to them
4) Provide

Now, from an e-commerce model standpoint, I know the process of 'finding a product that sells.' But this time I want to 'find a large group of people with a common set of problems that I can cater multiple solutions for.'

Model will probably be what JasonR is doing, ish.

QUESTION? Does anyone have any basic pointers on how to go about doing that? I won't ask for an essay, merely for pointers. Everything I've read on google about 'market research' has been about 'go to terapeak to check if solar powered lightbulbs have a high sell-through ratio/follow your passion.'

And don't hesitate or pull punches if you think that I'm thinking about this the wrong way.

 

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[Spartan]

A market is a group of people with similar behaviors. Look, and really start noticing, people's beliefs, mannerisms, actions, and organizations. When people say to look for the market, what they are really saying is to just look for a group of people that behave in a similar way, really get to know them, and the opportunity will come forward.

For most, it's not easy to just have an idea and boom start a business. You have to really get to know some kind of market deeply. For MJ, he knew the limousine business very well. For Sal, he had a deep understanding of the paint business. That's why great ideas, and the great executors, usually come out of those people that put in the time to deeply understand how certain processes works. Finding market opportunities is also a process to, and the skill can be learned. That's why people like zen******* can seemingly pop idea after idea out extremely quickly. The more you practice, the better you become.

 

[Mike Kavanagh]

follow your passion

Well lets break this down.

Lets say you are very passionate crocheting. Lets say your really good at crocheting dog costumes.
Your market is very narrow.

You can only sell your dog costumes around one-two times a year but only to people who BUY COSTUMES FOR THEIR DOGS.

How many people can you realistically sell to AND beat all of the competition that has been around for years.
It's possible but there are better ways.


Think like this:
People have been hunting and fishing since the dawn of man. How can you help someone here? What would make life easier for a hunter? What about a fisher?

Cars have only been around for a little over 100 years but if you don't own at least one, life sucks.
GPS systems have made life even easier for car owners. So have ABS, airbags and radio. Aftermarket parts?
Insurance?

I can't go without my iPhone. I have tons of data(books, podcasts, text messages) stored on it. I even bought an $80 case to protect it. What about the insurance that goes with it?

What about the main three categories?
They are health, wealth and happiness.

Make life easier, save money on a better product or help them feel better and you got a good life coming to you.

 

[RogueInnovation]

Cool post, I'm surprised there aren't more cool a## questions like this

I can only tell you what I know, but basically START BIG, and fill out as many niches in that market as broadly as you can and narrow in on a sweet spot.

For example, you pick a market direction
Boats

Fishing, Gear, Repair, what?

Did I start big enough?
Probably, because there are several markets surrounding it, because all kinds of people enjoy the water.

What ways are there to enjoy water? Nostalgia, swimming pools, sipping Mai Tais by the ocean?

So how do I find a market within all this mess of people who enjoy water?

Well, you try to make sense of it.
There are Hobbyists who buy for their home collections
There are boat owners, ranging from dingys up to yatchs and cruise ships
There are sports enthusiasts and racers
There are holiday makers and those who come for the show

Now what TIES this band of people together via purchasing behaviours and attitudes?
Maybe the sports guy is serious about quality, maybe the boat owner is looking for the ultimate experience, maybe the hobbyist just wants to feel a part of it, and maybe holiday makers enjoy the simpler things and don't worry too much, but maybe what unites them is the excitement, the draw of the water.

Now, once you understand the people and their passion, you look out at all the products and services available to them, and you make notes about each different field. You size up potential cashflow from each venture, and see if your estimates are on mark.

Then once you find a few good business set ups, you study that market for undeveloped opportunity, because chances are, you can enhance the opportuinity that is already there, but if you really look you might find an even better idea of what is going on.


Personally, I just ask loads of questions and get curious and slowly narrow it down.
I haven't perfected the end part yet of exploiting the market.

 

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[Formless]

These have been very helpful answers that addressed an issue. Thanks.

Before this, I sort of separated 'the real world' from 'potential markets'. This gives me some insights, and a reminder to be a participant of the world, not just a member.

Coincidentally, I got a job offer part-time in a DPD warehouse. I wonder if the postage/parcel industry has some problems that make their lives harder...

Heavens willing, if I pass the interview, I'll start my search there.

 

[Milkanic]

http://www.magazines.com/magazines/magazines,default,sc.html
http://www.investorguide.com/industry-list.php
http://www.bls.gov/home.htm

 

[Draven Grey]

I use Market Samurai to quickly look at what's selling, and then Lean Canvas the business ideas from there for a quick and solid layout and testing the market. I've done it with several businesses, and wish I had done it with the many I started before having those tools. Adding MJ's CENTS rules to that analysis, and using his WADM to choose between the top ideas just made all of it exponentially more effective.

 

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[sle3pyguii]

I've been using Reddit (full disclosure: I'm never not using Reddit) and Twitter and searching these phrases or similar ones:

"I hate"
"Someone should make"
"I wish there was"
"Is there any"

Basically, just any phrase that tells me that there's a problem somewhere. If you use a huge site like Reddit, narrow down to specific subreddits before you search or a phrase like "I hate" will net you millions of useless threads.

I have yet to find an idea that I'd like to pursue though.

 

[Mike Kavanagh]

http://www.magazines.com/magazines/magazines,default,sc.html
http://www.investorguide.com/industry-list.php
http://www.bls.gov/home.htm

Magazines.com is gold!

Investor guide, to me, seems to be more commodity orientated.

 

[Deleted21704]

I've been using Reddit (full disclosure: I'm never not using Reddit) and Twitter and searching these phrases or similar ones:

"I hate"
"Someone should make"
"I wish there was"
"Is there any"

Basically, just any phrase that tells me that there's a problem somewhere. If you use a huge site like Reddit, narrow down to specific subreddits before you search or a phrase like "I hate" will net you millions of useless threads.

I have yet to find an idea that I'd like to pursue though.

Interesting subs on there I recently found are r/somebodymakethis, r/crazyideas, and (occasionally) r/shutupandtakemymoney. Like the rest of reddit, the gold is few are far between, but those subs are interesting to browse every once in a while for off-the-wall ideas.

 

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[Milkanic]

Magazines.com is gold!

Agreed, it is also a great way to get headlines/copy, find problems in that market, and see who is already spending money in the market. If someone advertising 3 months in a row in a magazine, they are likely making money on that ad.