As someone with few resources, I can only do market research through observations, talking to people and using google questionnaires in addition to finding secondary research done on the topic.
However, is this method of "market research" acceptable when I want to present my ideas to potential investors? Is there some sort of more valid form of market research?
Market research is a big ocean in itself .
What will be acceptable to the investors :
a) Primary Research (market size, market segment, customers behavior, product costs, profits, competition etc )
b) Secondary research from public and commercial sources (market size, market segment, customer needs / wants/ desires, current players in the market, concentration of the players etc)
You should be able to reconcile the differences in the two research methods ( e.g Primary research market size may differ from Secondary research market size. Which one is more realistic you should be able to understand the differences and align your proposal accordingly )
I think Yes these would be acceptable to the investors or say
that these are the minimum things that investors will seek from you
However What will attract investors to your proposal are the following things
a) Profit potential ( be prepared with cash flows, income statement, balance sheet simulation ) for next 5-10 years, you should be aware of financial ratios , break even analysis
b) Your own beliefs in the product ( what is USP of the product, what will make it sell, what will drive profits)
c) your commitment levels
(your role and your own evolution as the product grows)
d) your depth of research or knowledge of the market and product
(Yes primary and secondary research )
Feel free to reach me for any support and help
