Market Research

Have you done your homework before opening your doors so you avoid making those business-breaking mistakes?

You need to do some research to figure out if there’s a demand for your product or service. What’s different about you and what you do? How will you compete? Find a place to set up shop.

Doing your due diligence can mean the difference between success and failure. In the Market Research Class you will learn about online research and other do-it-yourself methods that ultimately lead to increased sales.

To determine if your business concept is viable you need to ask questions like these:

• Is the market saturated? Does your city really need another bakery? How much money is spent in your industry each year in your area? Is there room in the market for one more bakery?
• Does the market want what you’re offering? If you’re thinking of providing a doggie day care or a facility where people can cook a week’s worth of meals in a group setting, will anyone care? Or if you’re developing a new online store, is it something they can’t live without?
• What’s the competition doing? What do they do well? What do they do poorly? What’s missing in their offerings? What’s unique about them? Can you offer something different that’ll encourage customers to visit you instead of more established businesses?
• Who is your target market? If you are a doggie day care, are there owners of dogs in the area you have chosen? If you’re selling inline skates, are you opening in an area with a population of the right age and disposable income?
• Can you reach your target audience? Are you marketing online? Is word of mouth the only way to reach your target? Will direct mail work for you?

The best sources of information will vary depending on the type of business and circumstances, but options include the following:

• Trade information.
• Demographic and economic data.
• Business groups.
• Local universities.
• Local competitors.
• National competitors.
• Potential customers.

All this detective work will pay off, either by helping you validate your business plan, sending you back to the drawing board, or convincing you to shelve it altogether. And don’t worry if that happens—you’re sure to dream again!