Read Steven's bio.
Skip to main content
Skip to footer
Small Office/Home Office Expert Expert: Steven Strauss
Look before you leap
Q: How would a person go about conducting market research? I would really like to know if there is a market for my business idea. Thanks!
A: I like your thinking. Too many people jump into a business venture without first finding out if there is a market for their product or service. Not only do you need to know that, but it is equally important to research the competition and the industry, so you can have a pretty good idea about your chances of success before you ever start.
There are several methods you can use to find out what you want to know. The most common are these:
- Direct research: This is the most expensive method, but will also give you the best results. Here, you would hire telemarketers, direct mail firms, or focus groups to interview people with specific questions about your specific business. These firms get the interviewees and work with you on putting together a survey that will enable you to cull the information you need. Look in your local Yellow Pages under "Marketing Research and Analysis."
- Secondary research: There are many, many organizations out there with gobs of information that will help you make some informed decisions about your business. Government departments, trade organizations and associations (particularly helpful), firms like Dun & Bradstreet and Robert Morris & Associates, public libraries, your local chamber of commerce, business departments at universities, and the Small Business Administration – all will have information that could help you.
- Read: Finally, read up on your industry. A good book you can use to get started is called Business Information Sources by Lorna M. Daniells and published by the University of California Press. The U.S. Department of Commerce publishes some great pamphlets, such as U.S. Industrial Outlook. Trade magazines should be very helpful too.
It also doesn't hurt to simply go out and speak with some business owners yourself. Especially if you make it a point to do so in a city other than your own, so that you don't seem like competition. You will likely find them to be quite willing to help you out. Good luck.
Some issues discussed in the expert forum are complex and continually changing.We recommend you consult a professional advisor about your specific circumstances, needs, and applicable laws. More details.