Few things in the life of an entrepreneur are as exciting as launching their first startup. The thrill of finally getting to work on bringing a product or service to the consumers, and then seeing it fulfill a need and turn a profit—those are the things innovation-oriented entrepreneurs live for. It’s no wonder, then, that so many of them rush head-first into launching a startup, without doing all of the necessary steps.

As a successful entrepreneur and the founder of TripleOne, James William Awad had many opportunities to see his fellow entrepreneurs jump the gun and launch startups that were doomed to fail. Even though experienced entrepreneurs often say that it’s better to fail early than drag along, avoiding failure altogether is generally a better idea. Especially if it can be avoided by performing one crucial step: market research.

Why So Many Startups Fail

There are plenty of different reasons why a startup could fail. The inability to secure cash flow is one of the big ones, as is being drowned out by competitors. There’s always the human element, too; a startup can fail because of the incompetence of the people who work at it. It can also be a combination of any of these reasons.

Still, the main reason why a startup might fail to develop into a successful business is often simpler than that. So simple, in fact, that it’s easy to completely overlook it. Startups fail because no one wants what they’re selling. Disruption for the sake of disruption is a concept even the most hardcore disruptors wouldn’t endorse, as even they know that disruption needs to benefit the consumer, causing the demand. When startups fail, it’s often because there’s no demand.

This is why James William Awad always advises entrepreneurs to carefully research the market before they decide to pour money, especially their own money, into a new venture. Even though it has a price tag of its own and can take quite some time to get it done, market research might end up saving an entrepreneur from plenty of financial trouble.

Making the Most of Market Research

Market research is the very process during which an entrepreneur or a company can find out whether there’s a market demand for their product or not. Sometimes, it’s the company itself that conducts the research. There are also businesses specialized in doing market research for hire, which can really come in handy for small operations and startups.

While market research has the aim of providing solid information on the demand for a product or service, James William Awad also advises businesses to make the most out of the research once they decide to do it. Market research can be the source of invaluable feedback that can be used to fine-tune the product or service to better meet the consumers’ demands.

Better yet, market research can tell the business, be it a startup or an established company, what the best way to approach the customers with advertising and other types of messaging is. While at it, it’s also possible to throw in at least some competition research in there. It might not be what’s offered usually, but it can make a world of difference if the business decides to enter the market and release their product or service. It’s better to have more information than needed than be short of critical insights.