Researching your market

Once you have a Business idea, it is vital that you carry out detailed research into your potential market.

Market Research involves getting a lot of answers to a lot of questions. Obvious questions include:

• who and where are my potential customers?
• how many are there?
• What do my potential customers demand?
• How much will they pay for my product/service?
• How much will they buy from me?
• How often will they buy from me?
• What competition am I facing?

You must answer these honestly so that you can determine whether your business idea is viable or not.

Primary research

This can be carried out by you. Face to face interviewing; telephone calls; postal questionnaires are examples of primary research. Each method has its advantages and disadvantages.

There is usually a high response rate for face to face interviews and it is easy to identify the type of person you want to ask but it is time consuming and can be expensive. Telephone interviews can be quick but also costly and there is a limit to how much information you can get across the telephone. Postal questionnaires tend to be poor response wise.

Secondary Research

There is a wide range of published research and information available which may help you answer your questions. These sources can provide background information quickly and cheaply. However, information may be too general for your needs, if your business is specialised.

Statistics and information on a wide range of industries are produced by; local and central govt departments, trade and professional associations and commercial organisations. The internet can provide you with a vast amount source of worldwide information but don’t forget your local library can be provide you with a great deal of sources.