1. Choose a departure point
Start with a hypothesis that’s not too vague or too broad (‘If I open a second coffee shop, I will sell more coffee’). ‘If I park a mobile coffee shop at the main taxi rank, I will sell 300 more coffees a day’ is much clearer and will give you information you can work with.

2. Do secondary research first
This is a very cost-effective way to gather a lot of information by studying other people’s primary research. Think research reports, government data from Stats SA, trade journals and industry publications as well as trend reports.

Academic studies and PhD theses are remarkably good sources of very specific information too.

3. Qualitative research
Collect and analyse non-numerical data (not stats) to understand concepts, opinions or experiences, for example, ‘What is important to you when getting your morning coffee?’

I prefer to do this informally and in situ, in the environment or moment in which people interact with my product.

The more formal option is through focus groups.

4. Step into your customers’ shoes
Immerse yourself in the world of the people you’re trying to serve. You will gain valuable insights into their behavioural influences that could lead to unique innovations and a whole new approach.

5. …Then step into your customers’ minds
Neuroscience, which is the study of the nervous system and brain, is fascinating and extremely powerful but can also be expensive.

It’s not essential, but it will tell you how the brain responds to marketing stimuli, our emotional reaction to a product experience and so much more.

6. Quantitative research
This involves collecting numerical data to describe characteristics, find correlations or test numerical hypotheses. For example, ‘How many days a week do you buy takeaway coffee?’

7. Get help where help is needed
Tools such as Survey Monkey and Google Forms provide a low-cost automated way to reach many, many customers, but developing a questionnaire is a specialised skill.

I always recommend working with an experienced professional; the wrong questions will give you the wrong answers.

8. Add your findings to your business plan
This will help to keep you focused and remind you of what your customers want. That said, people’s wants and needs change, and you may have to do follow-up research every few years to keep up with your customers.

9. Remember about your competitors
You have to know who you’re competing with and what their strengths and weaknesses are. Visit their shops and online stores, buy something (like any other customer), and follow them on social media.

Learn more about Old Mutual’s funding and support for SMEs here.